Money on Deposit Safety of the Euro

TLC

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A simple question - maybe not a simple answer - we have approx €150,000 in savings money from an inheritance received a couple of years ago & savings we have made over the years. If the worst comes to the worst & the problems move from Ireland to Portugal to Spain, could the Euro go bust ( I know my terminolgy isn't the proper financial wording & I apologise for that) will all our savings - not just ours but everybodies - be wiped out? Should we consider moving the bulk of it into the US dollar - can we even do that? I'm not to concerned about interest rates at the moment - we would just like some reassurance that it would be safe. It is our nest egg for retirement.
 
Anything can happen, even that China can ask for the money back for the US bonds they subscribed thus bringing US to the verge of collapse...

The question has to be: where are you planning to retire? Once you know the answer why not keeping the money there so that you'll follow the destiny of the other co-citizens? I'm acting on the basis of this question as I don't see too many certainties... :confused:
 
If the Euro goes you wont lose your savings as there are still guarantees. The problem is if we revert to an Irish punt we will have to devalue overnight and thus your money will be worth less.
 
So how do we protect our savings against devaluation if we leave the Euro ?

slightly diffferent question, but a different angle....
If your deposits are with say, rabodirect.ie, and we switch to the punt....does your savings switch to the punt also or stay in euros? i.e. are deposits with Rabo and Northern Rock Ireland held in Ireland or in their mother countries?
 
If your deposits are with say, rabodirect.ie, and we switch to the punt....does your savings switch to the punt also or stay in euros?


As far as I am aware they switch to the Punt so your savings get devalued as well.
 
We've always been subject to the vagaries of the currency markets and exchange rates, but especially since the onset of the current global financial crises those with savings have all been heavily involved in currency speculation, however unwillingly and unwittingly. This is a risky game where savings can get seriously decimated and we should all be fully aware just how exactly we are involved.

If Ireland at any time in the future for whatever reason should have to default on it's guarantees, and/or, revert back to a much devalued punt nua, all savings covered by the Irish bank guarantee are at risk in scenario 1, and all savings held within the state are at risk in scenario 2.

Should we be prudent with our life's savings and move them offshore, we would still all be speculating that the euro will hold it's value viv a vis other currencies and not slide into some abyss before disintegrating altogether perhaps. Recent euro instability caused by just our own little state and the well-acknowledged fundamental structural imbalances of "one size fits all", might not auger well for the single currency going forward, at least in it's present form. So, should we also have some of our savings outside the euro as well as outside the state? ...a question well worth speculating on!
 
Can someone please let me know how our savings would be devalued? Even if we had to go back to our own currency and a euro was worth, say, 5 "punt nua" surely for every euro I have in saving they would have to give me 5 punt nua. I should still have the same euro equivelent when the currency comes into effect. I know after this we run the risk of exchange differences, but the immediate effect should be the same. Am I missing something here?
 
Can someone please let me know how our savings would be devalued? Even if we had to go back to our own currency and a euro was worth, say, 5 "punt nua" surely for every euro I have in saving they would have to give me 5 punt nua. I should still have the same euro equivelent when the currency comes into effect. I know after this we run the risk of exchange differences, but the immediate effect should be the same. Am I missing something here?

i assume in those circumstances , anyone who had ammassed a large amount of cash ( euro ) would be in a possition to take advantage of our new currency although euro,s in ireland might have an identity unique to this country so unless you had german notes , your euro cash would become punt nua cash

im thinking too deeply here
 
Can someone please let me know how our savings would be devalued? Even if we had to go back to our own currency and a euro was worth, say, 5 "punt nua" surely for every euro I have in saving they would have to give me 5 punt nua. I should still have the same euro equivelent when the currency comes into effect. I know after this we run the risk of exchange differences, but the immediate effect should be the same. Am I missing something here?

your punt nua's would be worth a lot less v's the euro in short time as the Irish Govt would seek to devalue the punt nua to make Ireland competitive. Also given our current situation, there'd be very few takers for holding reserves of irish currency therefore more downward pressure would be applied.
So 5 punt nua's might equal 1 euro on day 1, but a it would'nt stay like that for long...at least not until we get ourselves out of this mess in the medium term
 
If Irish Euros became Punt Nua's and your savings became Punt Nua's would it follow that your debt / mortgage would become Punt Nuas also and no longer be in Euros?

On another point would it be madneess for the Irish state to come out of the Euro and devalue the Punt Nua given that we have massive debt in Euros which would only increase if the Punt Nua was devalued? Perhaps the only way this could happen is in the event of ireland defaulting?
 
On another point would it be madneess for the Irish state to come out of the Euro and devalue the Punt Nua given that we have massive debt in Euros which would only increase if the Punt Nua was devalued? Perhaps the only way this could happen is in the event of ireland defaulting?

i don't think we'll leave the euro....we could be kicked out though especially with the carry on of the Greens and 2 Independent muppets yesterday.
If this budget is'nt passd or we postpone it, that could be all the other euro countries need to walk away
 
the way I see it, If we secure the rescue package, our participation in the Euro is locked in for the reason stated above by DocOc, our debts would all be in Euro. Europe won't kick us out if they ever want to get the €90Bn bailout package back. We then need to claw ourselves back to some sort of ecomonic strength over a period of 80's like cutbacks, emigration and tax hikes.

If we screw up this rescue package, then our only option is default, decouple from Euro, and devalue! Our reputation (what's left of it) will be in tatters, Our only hope will be to do whatever it takes to keep the multinationls we already have for employment and to entice new ones over here to employ our population and use the skills we have sitting on the dole. (We will probably need a new 5% Corporate Tax Rate and 1% social contribution for multinationals. Why not as we will no longer be friends of Europe after defaulting on their central bank and other member state banks ) AND then we manufacture and export the hell out of anything we can to get any money into Ireland.
 
don't kid yourself galleryman. we are in the Euro - thats why the corp tax rate is so attractive. it's not the cailins at the crossroads.
 
don't kid yourself galleryman. we are in the Euro - thats why the corp tax rate is so attractive. it's not the cailins at the crossroads.




I know we are in the Euro.....for now, and provided we secure a bailout we will probably remain there.
The corporate tax rate is not low because we are in the Euro. It was low before we joined the single currency and it is low because we are a small open economy on the periphery of Europe. We are the first port of call between Europe and the US we need to attract multinational companies to invest here and to employ people here.

sorry but I don't get the cailins at the crossroads reference.
 
yes but why lend us another 90bn on top of all the money already lent to the Irish banks by the ECB and German banks and THEN kick us out of the Euro. That makes no sense. If we are getting the boot we wont get any more cash first.
 
Europe needs Ireland to survive to stop this spreading further. They dont give a hoot about Ireland only saving the single currency and stop the contagion spreading to banks abroad. The markets have already written us off to default and it may be enivable as the debt levels and the level of austerity proposed is simply too big and too much. It's akin to taking a baseball bat to a child and expect it to get up and carry on. The markets know this and Europe doesn't care.
If this goes onto Portugal (and it will) then Spain is next. Spain makes up 10% of the European Economy, so if this happens it could be the begining of the end for the Euro. The ECB need to have a massive quantitive Easing process to recapitalise the banks in this event if not already.
They are trying to avoid this at all cost.
If the Euro ends we will have to devalue over night. (If you have 100 today it may be 70 tomorrow). It's not an exchange rate.
We probably would recover quicker from a default than what is been lined up for us. This is going to be spoken about more over the coming days/weeks.
 
europe needs ireland to survive to stop this spreading further. They dont give a hoot about ireland only saving the single currency and stop the contagion spreading to banks abroad. The markets have already written us off to default and it may be enivable as the debt levels and the level of austerity proposed is simply too big and too much. It's akin to taking a baseball bat to a child and expect it to get up and carry on. The markets know this and europe doesn't care.
If this goes onto portugal (and it will) then spain is next. Spain makes up 10% of the european economy, so if this happens it could be the begining of the end for the euro. The ecb need to have a massive quantitive easing process to recapitalise the banks in this event if not already.
They are trying to avoid this at all cost.
If the euro ends we will have to devalue over night. (if you have 100 today it may be 70 tomorrow). It's not an exchange rate.
We probably would recover quicker from a default than what is been lined up for us. This is going to be spoken about more over the coming days/weeks.

+1
 
I have a fairly substantial sum with Rabodirect and Northern Rock at the moment but naturally it's impossible to get through to their Customer Support at this time due to everyone trying to open up new accounts !

Should the time come to get out of euros and transfer to Sterling in a UK bank do RD and NR allow electronic transfers to them or do they have to go via an Irish bank such as AIB ?
 
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