Euro collapse? Transfer money into Australian Dollars ASAP?

lippy11

Hey guys,

I've been thinking over the past few days about this much talked about euro collapse.. I'm heading to Aus in February and at the moment I'm saving away. Have our visa and booking our flights tomorrow with Etihad.

My question is that should I now set up my Aus Bank Acc and start transferring my savings into that just incase the euro does collapse? Be a nightmare if the euro did collapse and all our savings weren't worth anything!!

Would it be ok to set up our bank account now even if we're not going until February?

Thanks, L

my475visaquest

Eddie Hobbs was on TV3 the other morning advising to do that, or buy Gold!

klipdrift

Im giving up trying to figure out how it works. A few years ago when i was building a house using sterling and when the tiger was still running, i was getting 1 euro 30/40 cent for my £1 sterling. Now the euro is supposed to de valued or worth a lot less!!!!, i can only get on a good day 1 euro 13 cent for my £1 sterling....!:(.
Can someone edcuate me on this please.

To answer your question, in my opinion, yes i would convert to Aus dollars. Ohh and good luck in Aus

kuro2k

my475visaquest wrote: »

Eddie Hobbs was on TV3 the other morning advising to do that, or buy Gold!

Buying gold now is a waste of time, much like buying a house in Ireland in 06/07. When people like eddie hobbs start advising people to buy gold......... its time to sell and fast!

jank

Think some people need to relax. It appears the the European central bank are playing ball. There has been too much invested to let the euro go. If you have six figures of cash then you should have diversification in your savings. If you are talking 10k or so forget about it.

No harm in having accounts ready though if the case arises. An easy way would be to buy blue chip funds/stocks in Sterling USD or AUD. It will hold its value in foreign XE if Ireland went the way of An Punt Nua. But the world will be inj big trouble if the euro went.

TBH nobody knows how it will play out. Keep your options open.

lippy11

Thanks for the replies!
Wouldn't mind Eddie Hobbs and him telling us to buy gold lol! But I am seriously considering setting up my Aus bank acc over the next day or two and start transferring funds.. Commonwealth Bank seem like a good option?

Got to prepare ourselves for the unexpected and I think I'd rather be safe than sorry... :rolleyes:
So many articles online, hard to know what to do really!!

Tigerandahalf

Since you are going to Oz and will be using the money in Oz I think it would be a good idea. You have nothing to lose. The euro has been losing value all the time against other currencies. If the euro did collapse you would more than likely not be able to access your cash or a severe limit would be put on withdrawals. I read yesterday that Siemens moved 6 billion out of Societe Generale, a big French bank so obviously there is a fear there. Even if it doesn't collapse it seems likely that the euro will lose more of its value with all the uncertainty that's out there.
As regards Gold, it's a bubble.

matt-dublin

lippy11 wrote: »

Wouldn't mind Eddie Hobbs and him telling us to buy gold lol!

Isn't eddie hobbs the root cause or the irish recession, didn't he say buy houses and borrow more money?

my475visaquest

kuro2k wrote: »

Buying gold now is a waste of time, much like buying a house in Ireland in 06/07. When people like eddie hobbs start advising people to buy gold......... its time to sell and fast!

Meryll lynch have said that it is going to rise from $1900 to $2500 by christmas!

Man of Aran

Gold, Silver and Platinum maybe - that jumps off page.

As for the Aussie dollar and other "commodity currencies", that story may be long overplayed.
It had a long run already from 0.80cents USD to parity, today worth USD1.02.
Deposit interst rates are good but that gain can quickly be wiped if any lasting significant dip in FX rates occurs.

It's volatile like everything else these days, you need liathroidi of steel to wade in seriously!

Why not CH-Franc or Norwegian Kroner?

" Bigi curamach .... money in your pocket is hard earned "

my475visaquest

Joe Duffy has a programme about it now!

Man of Aran

my475visaquest wrote: »

Joe Duffy has a programme about it now!

Thanks for the heads up. Got it online now.
Who is the expert?

CHF NOK and some emerging market & stocks ( or mutual funds of BRIC esp China) if any spare cash to invest.
Long term , you cannot beat good growth stocks to "put yer kids through school and yer retirement" .

HSBC Petrochina, CNOOC and China Mobile - luvly jubly.

liptonvillag

I'm getting worried myself. I have savings and I'm getting a little worried about what's happening. When you have all the central banks gathering the last few days, Siemens pulling 6 billion out of France and all the corporate CEO's meeting today in Ireland, I really start wondering what's heading our way. I'm in Ulster bank. Their regulated by the Financial regualtor in Ireland. I want to open a foreign currency account. I know Ulster Bank are owned by Royal Bank of Scotland but Ulster bank are regulated by Irish finacial regulator.. Here's a scenario. If there's a run on the banks and a mass exit of capital out of the country, the Irish government is forced imposes restrictions on withdrawls and bans the taking of money out of the country. Will the same restrictions happen if I'm an Ulster bank account holder (Royal Bank of Scotland) ? Also, will my savings be safe in a sterling account ? Is it regarded as a foreign account then ? The same question applies if I have a Singapore dollar, U.S dollar, Aus Dollar or swiss franc currency account ? Can the Irish government impose restrictions on Ulster bank ? Any informed advice of what I should do with my savings ? Would I be better opening a sterling account in another jurisdiction altogether ? Would my account have to opened in northern Ireland or another country to escape the clutches of the Irish governments ? I'm also worried if there is a run on Banks here that the whole banking system here will be bandjoed. There're pretty under capilised as it is. Please, any advise here would be appreciated ??

Stinicker

my475visaquest wrote: »

Eddie Hobbs was on TV3 the other morning advising to do that, or buy Gold!

So long as you do the exact opposite of what that ejit says then you will be okay!

mrsoundie

I cant understand this. All this fear, the politicians are trapped by fear, the markets trapped by fear, and so on and so.........


Yet, I will still get up in the morning and buy milk, papers, petrol, (add in your various other purchases) etc

Euro collapse, I don't think so.

Because you are going to Australia it would be a good idea to transfer some now and keep an eye on the value of AUD to EURO and transfer when its good for you.

Good luck on your trip, and enjoy Oz.

liptonvillag

mrsoundie wrote: »

I cant understand this. All this fear, the politicians are trapped by fear, the markets trapped by fear, and so on and so.........


Yet, I will still get up in the morning and buy milk, papers, petrol, (add in your various other purchases) etc

Euro collapse, I don't think so.

Because you are going to Australia it would be a good idea to transfer some now and keep an eye on the value of AUD to EURO and transfer when its good for you.

Good luck on your trip, and enjoy Oz.

You don't think the Euro will collapse ?? Sure all the signs are happening as we speak. Big money funds and deposits are exiting the euro zone day by day. Siemens withdrew 6 billion from societe generale bank in France two days ago and deposited it back in Germany. Why ? What do they know that we don't. Big money is flooding out of Italy and other European countries. Hedge funds are putting money into Asian markets. Today in Dublin, All the Corporate heads (CEO's) of American and foreign companies met in Dublin today to discuss the contingency plans if the euro collapse happens. The man on the street is gonna be the last to smell the coffee.
Why take the risk ? Why lose 50% of your savings if there's gonna be a punt nua and it's valuated down 50% of the value of the euro.

smidgy

Capitalism is all about the fear and the greed.

We have seen about 10 years of the greed now prepare for the fear. (but do not fear it)

It doesnt matter what you believe ... you have no control over the breakup of the euro.

Be sensible .. my tupence ..diversify

If you have 10K,
get 2500 of it in euro cash, stick it somewhere safe (you may need this if bank accounts are frozen)
get 2500 of it in US dollars, stick it somewhere safe (in case an punt nua/euro is worthless)
put 2500 in offshore shares
put 2500 in an offshore bank account

cover your ass , cover all angles

Have no fear...

Crazy or sensible?

jackbhoy

If you are really that stressed about it OP just set up a currencyfair account. You can convert your euro amount to any currency you want and leave it there until you want to use it e.g convert to mix of £/US$/AU$ and when you get to Oz just transfer to local bank account.

Personally I usually have a mix of Euro and AU$ in my account and convert when rates suit, like last Friday when rate hit 1.375. The volatility in currency is impossible to predict, there are just so many variables and unpredictable events that affect rates that you are as well off asking an 8 ball or a fortune teller as most "experts". Just look at predictions most bank's treasury departments release and then compare them to what actually happens. These guys are paid to do nothing but look at currency markets all day, every day and they are wrong more often than not.

massdebater

As jackbhoy said, set up a currency fair account and switch your money with them. You'll need to set up an Aus bank account to puit your money in. I set up my bank account with NAB before I left Ireland (you can do it online) and transferred a few months before I came to Aus. NAB starts off with a 5.4% introductary savings rate so I had a good bit of interest built up by the time I got here. You can put as much money as you want into your Aus bank account but you can't take any money out of it until you actually get to Aus. You just need to call into a branch with your passport and you're good to go.

Peregrinus

Second-guessing what the markets are going to do in the future is a mug’s game. We only have to look at the state of the banking/investment industry to see that highly-trained people who devote their careers to it cannot do this reliably. What makes you think you can? The truth is that you do not know whether the euro will rise or fall against the Australian dollar between now and next February, and neither does anybody else.

But you do know this; you’re going to Australia next February. And, assuming that is permanent or indefinite, it’s likely that in the long term you will be using your savings to meet costs and liablilites in Australia, measured in Australian dollars.

So, if you hold euros, your assets (your savings) and your liablities (deposit on a house, retirement fund, whatever it is) are mismatched. That creates a risk which can work out well for you (if the euro rises against the dollar) or badly (if the euro falls). You do not and cannot know at this point whether the risk will work out well or badly for you.

So you have to ask yourself, are you happy with the risk? Is the possibility of upside attractive enough to you to make you want to face the possibility of downside? If the answer to that question is “no”, then transfer your savings into Australian dollars.

Opening an Australian bank account from abroad can be a bit of a pain, since Australian banks are subject to fairly stringent “know your customer” requirements, and of course you don’t have a relationship with an Australian bank. Complying with their requirements from a distance will be a pain, and will take time.

But you do have an option. You can open an Australian dollar-denominated account in any Irish bank, convert your savings to Australian dollars and lodge them in that account. Any Irish bank will provide this service. This protects you from the exchange rate risk on the euro. It still leaves you exposed to the solvency risk, that your Irish bank could fail, but you don’t suggest that that is a worry for you.

You can then open an account with an Australian bank at your leisure (waiting, if you wish, until you actually get to Australia. When it has been opened, you can transfer your Australian dollar savings from your Irish account to your Australian account.

hussey

Peregrinus wrote: »

Second-guessing what the markets are going to do in the future is a mug’s game. We only have to look at the state of the banking/investment industry to see that highly-trained people who devote their careers to it cannot do this reliably.

Nail, Hammer, Head.

massdebater

Peregrinus wrote: »

Opening an Australian bank account from abroad can be a bit of a pain, since Australian banks are subject to fairly stringent “know your customer” requirements, and of course you don’t have a relationship with an Australian bank. Complying with their requirements from a distance will be a pain, and will take time.

I agree with the rest of your post but not with this bit. Opening an Australian bank account is easier than opening one in Ireland. You don't need to have any previous relationship whatsoever. Most of the banks have Migrant Banking sections who deal entirely with people opening accounts from overseas. Here are links from 3 of the biggest banks. As I mentioned earlier, I used NAB and found them very helpful and easy to work with.

http://migrant.nabgroup.com/en

http://www.westpac.com.au/personal-banking/moving-to-australia/migrant-banking/

http://www.commbank.com.au/personal/international/moving-to-australia/faqs.aspx

mandrake04

hussey wrote: »

Peregrinus wrote: »

Second-guessing what the markets are going to do in the future is a mug’s game. We only have to look at the state of the banking/investment industry to see that highly-trained people who devote their careers to it cannot do this reliably.

Nail, Hammer, Head.

+1

sometimes its best not to listen to the Armchair Analyst's.

Peregrinus

massdebater wrote: »

I agree with the rest of your post but not with this bit. Opening an Australian bank account is easier than opening one in Ireland. You don't need to have any previous relationship whatsoever. Most of the banks have Migrant Banking sections who deal entirely with people opening accounts from overseas. Here are links from 3 of the biggest banks. As I mentioned earlier, I used NAB and found them very helpful and easy to work with.

Well, yes, but you need to be a little bit wary, and be sure that those migrant accounts are right for you. You can get money into those accounts with comparatively little formality, but getting it out again is covered by all the "know your customer" rules. The idea is that you put the cash before you come to Australia, and then when you come to Australia go into the branch, establish your identity with a variety of passports, drivers licences, electricity bills and the usual clobber, get to know them and hoe into your money to your heart's content.

It works well as long as it works well. But if there's a glitch - your coming to Australia is delayed, for example, or you need to do something with some of your money before you come, or anything non-standard -it may not be quite so smooth.

Your money is perfectly safe, and you will get it. It's just that if your circumstances depart from the standard template even a little bit, the fit between what the account allows and what your circumstances require may be a bit rough around the edges. An AUD account with your Irish bank is more flexible.

There's nothing to stop you opening your migrant account in an Australian bank and putting a modest amount of AUD in it, and at the same time opening an AUD account in an Irish bank and putting the bulk of your savings in that. Then, when you actually complete the move to Oz, you can close your Irish AUD account and instruct your bank to transfer the money to your Australian account.

massdebater

Peregrinus wrote: »

Well, yes, but you need to be a little bit wary, and be sure that those migrant accounts are right for you. You can get money into those accounts with comparatively little formality, but getting it out again is covered by all the "know your customer" rules. The idea is that you put the cash before you come to Australia, and then when you come to Australia go into the branch, establish your identity with a variety of passports, drivers licences, electricity bills and the usual clobber, get to know them and hoe into your money to your heart's content.

It works well as long as it works well. But if there's a glitch - your coming to Australia is delayed, for example, or you need to do something with some of your money before you come, or anything non-standard -it may not be quite so smooth.

Your money is perfectly safe, and you will get it. It's just that if your circumstances depart from the standard template even a little bit, the fit between what the account allows and what your circumstances require may be a bit rough around the edges. An AUD account with your Irish bank is more flexible.

There's nothing to stop you opening your migrant account in an Australian bank and putting a modest amount of AUD in it, and at the same time opening an AUD account in an Irish bank and putting the bulk of your savings in that. Then, when you actually complete the move to Oz, you can close your Irish AUD account and instruct your bank to transfer the money to your Australian account.

Yeah, you're spot on about being wary. Unless the OP is definitely coming to Aus in February i.e. flights booked, visa granted etc. then opening an Aus a/c and shipping his money is a bad idea. If there's even a slight risk that his plans to go to Aus might change then your option would be best.

lippy11

Thanks everyone for your replies!
Massdebater, I'm actually a 'her' lol And we are definitely going to Aus in February. Flights are being booked tonight for the 20th of February so there's no going back then!

I never actually thought of setting up an AUD account in a Irish bank, that's a good idea!
I have set up a Currency Fair account so going to weigh my options up and go with whatever suits me best.

Setting up a bank account in Aus doesn't seem that difficult from my research?! I've checked out Commonwealth Bank and their process seems pretty straightforward but I will check out the others also and see which would suit us best.

Man of Aran

Peregrinus wrote: »

Opening an Australian bank account from abroad can be a bit of a pain, since Australian banks are subject to fairly stringent “know your customer” requirements.
.

I would expect this to be true, could not think of any reason why A-NZ banks would be less regulated than say Singapore or HK where you cannot just walk in and open accounts - and they are liberal 'free market' economy cities.
They will make you jump through many many hoops.

Since 9-11 and Anti Money Launder measures several years ago, nothing is easy in personal global banking.
I had to go through hell and high water to re-instate a lapsed bank account back in Ireland after a dozen or more years dormant while away.

Can Rep of Ireland citizens walk into a bank in London or N Ireland and open an account easily or at all nowadays? It used to be easy before 2001.

If you can open Multi Currency account inside Ireland, that is way to go.
Which banks offer that? Myself I deal with HSBC Overseas- good service and good global footprint.

****************************************

Nil aon tinteain mar do thinteain fein ! Faraway hills look green.

mandrake04

Its easy to open an Australian bank account, I opened an ANZ account and transferred $8000 4 months before I even landed in the country.

Just walked into the bank in Sydney wrote out my account number showed my Passport and withdrew $500. Week later I picked up my bank card.

Not rocket science.

lippy11

mandrake04 wrote: »

Its easy to open an Australian bank account, I opened an ANZ account and transferred $8000 4 months before I even landed in the country.

Just walked into the bank in Sydney wrote out my account number showed my Passport and withdrew $500. Week later I picked up my bank card.

Not rocket science.

Thanks mandrake, as I said from what I've seen it doesn't seem difficult at all!
Do you mind me asking what bank you are with? I persume you've never had any problems with them from what you've just said!

mandrake04

ANZ

lippy11

mandrake04 wrote: »

ANZ

If I had of read your previous reply properly I would of noticed you stated that already, lol
Thanks again!