UK Pound Drops Again

[Travellerdave]

Just noticed it’s now down to just over 41 baht !. The latest fall is of course a result of the current uncertainty about the Brexit exit. In my humble opinion the population made a very foolish choice when voting to exit the EC.

when I first discovered Thailand nearly 20 years ago I recall receiving around 70 baht for my pounds. I think the drop is much greater than that experienced by the € and the $.

Whilst I am well funded I have hesitated when confronted by the financial,requests of my temporary Asian boyfriends, whereas in the past I was generous particularly with hot boys who give a good performance in bed.

Certainly I believe the numbers of gay Brits in Thailand will continue to thin out, particularly in the case of expats.

[traveller123]

Can you imagine what it is doing to us UK expats over here who are living off our UK pensions.

The rate was around 51 immediately before the Brexit referendum vote.

In my retirement financial planning I did factor in reductions in the exchange rate but it does mean my partner and I will have to restrict our holidays.

Fortunately for my retirement visa I am able to use the deposit of 800,000 baht system, but for the guys waiting for clarification of the figures for the monthly income method it must be a big worry as the income will almost certainly continue to be a Thai Baht figure

[hanan]

When walking today in Pattaya I saw an exchange booth stating that they gave less than 37 baht per euro now. Seems like the EU isn't such a good thing then if the euro still is worth much less than the Brexit-pound.

Also a lot other currencies have became more weak to the thaibaht so it seems strange when the Brexit opponents repeatedly use the british pound on different Thailand boards as an argument.

[traveller123]

Hanan, you have to compare the % falls in various currencies immediately pre the date of the Brexit referendum to current rates. If the GBP has fallen more than say the Euro, USD etc that means there are factors other than the strengthening of the Thai Baht

[pong]

Yesterday already saw the GBP quoted for <40 THB.

The actual value of a valuta says really nothing about how well it is doing.

Since I first came to the island named GB/UK, their currency, the GBP (at that time in shillings and pence) was worth well over 11 DEM=5,55 eur now. Now its just barely EUR 1,10. Its even worse if you convert to CHF. Even the Italian lira etc have nosedived not that much in that period. In general 1 eur buys more as 1 GBP would do in the UK.

[Guest]

Exchange rates move.

 

Also there is an underlying long term decline in the pound. It was $4 to the £ in 1945. Although once something solid is fixed for Brexit, a modest recovery in the pound is likely.

 

Anyhow, hopefully board members have been making sure their finances are robust to such issues over the last couple of decades.

Planning to spend 6 months in Thailand every year ? Well put half your ISA or pension in Asian stock markets.

 

Anyone who has been spending every damn penny they earn when it was 50 baht to the pound has been living a fragile dream. Particularly if all their assets are in sterling.

[traveller123]

Well put half your ISA or pension in Asian stock markets.

 

 

If your pension is from a final salary scheme or a money purchase scheme in the days when you had to buy an annuity - I am assuming you can't do this

[Guest]

If your pension is from a final salary scheme or a money purchase scheme in the days when you had to buy an annuity - I am assuming you can't do this

Correct. However, a fair percentage of people who live high on the hog with holidays to exotic locations should have some additional savings. So flexibility in that area.

 

As for those who spend every damn penny as soon as it comes in, well life can be tough when you don't plan with a safety margin.

 

The vast majority of us on these newer & generally inferior defined contribution schemes do at least have some flexibility over where it is invested. So whilst we have to save harder to get a decent pension, at least we have options to reduce exchange rate risk.

 

However, I am slightly disappointed to see that many people prefer to talk about currency movements without ever taking the slightest interest in strategies to mitigate the risks.

[bkkguy]

Also there is an underlying long term decline in the pound ... Although once something solid is fixed for Brexit, a modest recovery in the pound is likely

 

just goes to show the UK should be moving closer to the European ideal rather than turning its back on the EU

 

the Conférence générale des poids et mesures has just introduced a new standard for the kilo to address instability problems which should see it stable for centuries - I'm sure if they where asked nicely they could do something similar for the pound

 

bkkguy

[Guest]

Thai interest rates increased which generally causes a currency to strengthen.

 

Considering I know that I have no idea about short term currency fluctuations, all my GBP budgeted for Thailand were changed to THB on the day of arrival. So I can forget about all the short term nonsense.

 

And for the long term, just match expected overseas expenses with a corresponding overseas allocation of capital.

 

Incidentally, I just withdrew some USD in Cambodia. I typed in the required number of USD, hit enter and the phone buzzed in my pocket almost instantly with full details of the transaction from Starling Bank. Way before the Atm responded. Awesome technology.

 

Due to the $4 Atm charges, most of my USD were purchased in the UK at a very good rate. For Atm withdrawals, Starling charge 0% on top of the Mastercard rate. Most UK banks take about 3%.

[ChristianPFC]

When I travel to Cambodia, I bring EUR and exchange them to USD there.

 

Unless you get a better rate for GBP to USD in the UK, it doesn't make sense to change there, as you still would be carrying cash with danger of loss or theft.

[Guest]

The USD rate I got in London was within 0.3% of mid market, which is exceptionally good. I found this offer on Money Saving Expert website. It only makes sense if you happen to be going to central London.

[Nathan_B]

When walking today in Pattaya I saw an exchange booth stating that they gave less than 37 baht per euro now. Seems like the EU isn't such a good thing then if the euro still is worth much less than the Brexit-pound.

Also a lot other currencies have became more weak to the thaibaht so it seems strange when the Brexit opponents repeatedly use the british pound on different Thailand boards as an argument.

 

Good grief. 

 

Hanan, the Pound has lost about 15% of its value relative to the Euro since the Brexit referendum. If you had changed all your Pounds to Euros on 22 June 2016, you'd now be 15% richer.

[hanan]

If you had changed all your Pounds to Euros on 22 June 2016, you'd now be 15% richer.

No I had not. Because since I live in Thailand my euros give me much less baht nowadays than in 2016.

[paborn]

Curious, how's the dollar doing?

[vinapu]

Curious, how's the dollar doing?

quite well despite of Orange Overlord's efforts

[Guest]

Curious, how's the dollar doing?

Fine for now, but at the rate debt is being piled up there, it would be difficult to be confident over the long term. If I were a US citizen, I would be taking exactly the same steps I have been taking as a UK citizen over the last 20 years.