Euro Accounts in Great Britain - Euro Financial Crisis

[jbauer]

Hi,

I am an expat currently working in the U.K.

Over the last few years I have been working in Europe and have savings about 120000 euros in French banks.

Given that the value of the euro is going down and in light of the speculation on exits by either the Northern or Southern countries I am feeling quite anxious to get out my money out of France.

I am not interested in changing the money right now because of the low forex echange rates for the euro at this moment. I could transfer the money to a British bank and keep it in an Euro account.
The downside to this is in the case of a Euro exit by one/some/all countries what happens to my British Euro account. Will they directly convert it to Pounds/Deutsch Mark (newly created German currency) / Finnish Krona/ new Dutch currency?

I think conversion to pound would not be an interesting option as the exchange rate at the time of conversion will be highly unfavourable from the Euro's pointof view. The best solution would be to convert the euro savings into thenew German currency which would be slated to appreciate in value?
My question is who would decide what to do with my Euro account in the British bank should I decide to transfer my euro savings to the U.K?

Alternatively, am I just better off transferring my money to Germany in the hope that a Euro collapse would mean that my euros would be automatically converted into the newly reinstated German marks?

I shall appreciate any attempt to answer this conundrum?

Best regards,
J Bauer

P.S: A related question are the currencies of some of the other Northern European countries slated to appreciate as well?

 

[Enivid]

An interesting question. It seems to me that there will be some virtual exchange rate of euro maintained even after its collapse. Similar to the one that was before it has been fully introduced. So, in case of the eurozone collapse, you will be able to convert euro to any currency at that "virtual" rate exchange.

As for the Northern European currencies appreciating - they will appreciate compared to euro, but in the long-run they will lose from the eurozone collapse and will depreciate against USD, JPY, etc.

 

[Easy Trader]

I am not interested in changing the money right now because of the low forex echange rates for the euro at this moment. I could transfer the money to a British bank and keep it in an Euro account.

This is completely understandable, but I suggest you pick a price at which you would seriously consider exchanging your savings currency possibly in phases. You may loose value by the time (if or when) the EU decided to start forcing a currency cut-over. The exchange rate may be unpalatable now but could be down right painful in the future.

 

[Enivid]

This is completely understandable, but I suggest you pick a price at which you would seriously consider exchanging your savings currency possibly in phases. You may loose value by the time (if or when) the EU decided to start forcing a currency cut-over. The exchange rate may be unpalatable now but could be down right painful in the future.

On the other hand, it can be back to normal in some distant future ;-).

 

[Easy Trader]

On the other hand, it can be back to normal in some distant future ;-).

LOL, Your right and it will be back to normal one day. I don't think there would be enough antacids for my heartburn though. 120,000 EU is a good nest egg.