Expats Shedding Sterling Savings Shows Need For Multi-Currency Accounts

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Pryce Warner International Group have over 40 years advising expats on their finances and advise that British expats moving their savings out of Sterling in the past six months should opt for multi-currency accounts and not a single currency.

Multi-currency accounts help to spread savings risks

Single currency savings are unwise for expats.

Pryce Warner International Group – According to Shelteroffshore, research carried out by Lloyds TSB International showed that the amount of British expats holding their savings in Sterling dropped by half from 26% in September 2012 to 13% in May 2013.

73% of expats now have the majority of their savings in the local currency of the country in which they live.

David Retikin, Director of Operations at Pryce Warner International Group, commented: “Single currency savings are unwise for expats as they usually incur large currency exchange fees when transferring or withdrawing funds. Multi-currency investment accounts are a financial product used often by financial advisors themselves as the currency diversification they enjoy exposes them to less risk from currency fluctuations.”

Single currency savings are also exposed to risks of asset grabs, as happened to savers in Cyprus. This and the general financial atmosphere in the Eurozone mean that savings in Euros alone may be exposed to considerable risk.

Savers who will not need access to their savings can also use guaranteed deposit rates, which offer a currency diversified investment plan and a fixed rate of interest over a given period.

Richard Musty, the Director of Lloyds TSB International Private Bank, commented: “The crucial point for expats, who often have a high foreign exchange exposure, is not to try to predict movements in the currency markets, but to manage their currency risk instead. Planning ahead is the key.”

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Aneil Fatania
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