Toni-O

hey,
I wonder if you could help me pls. Finance is not my strong point but I understand that the $ is strong against the £ and that now is a good time to exchange $ to £s....

Having travelled round Oz on £'s earlier this year (cursing how expensive everything is!!) I now am earning some $'s at last and managed to save up to transfer some money back home to UK.

I'm planning on being here a year or so, but am I right in thinking that I should transfer money back home now whilst the exchange rate is like it is? The only thing I'm wondering is that my money won't get any interest in the UK as the interest rates are so low there, but does that not matter because the exchange rate is so good?
thanks a lot for any advice

Bermudashorts

If you are definitely going back to the UK and have surplus funds you definitely won't need whilst you are in Australia, then yes it would probably be quite a good time to be sending money that direction. Of course it might be an even better time in 6 months but we don't have crystal balls and can only take a punt. If it were me, I would probably send it back.

Whether it is better to keep it in Australia and get a higher interest rate depends upon your view of how the rate would move. If you could get interest at say, 6%, then so long as sterling does not strengthen by more than 6% you are better off keeping the money in Australia.

MartinLuther

I'd set yourself a rate like 1.70 and keep it in Aus earning good interest until it hits that rate. Currently there's nothing to suggest that the £ is going to climb so it could still be in the 1.60s in 6 or 12 months time in which case you'd have been better off keeping the money in Aus until then.

Another possibility is that you can buy a forward contact for 6 months time (from someone like HIFX or OzForex). This allows you to fix a rate (around about what it is now) for 6 months time. Although you will have to pay a deposit.

Personally I'd aim to keep as much money earning Aus interest rates as possible.

Loch Lomond

I have a keen interest in the exchange rate as I am moving back to the UK next year. I have done a fair bit of research into this and in all likelihood the pound will remain at around 60 pence to the dollar for some time. However forecasts from a number of established institutes predict it may get to 75 pence to the dollar in Q1 2011. Do a bit of internet research (other than this forum ).
The financial market is a gamble, and that is all. If it was predictable we'd all make money.
Go with your gut feeling....it's always worked for me.

Collie11

I wonder if anyone could clarify this for me, or give me a little advice. I have set up a migrant account with NAB and will be arriving in Sydney next Friday. I want to transfer the bulk of my spending money via Tranzfers. I have had an email to say that the account is opended for me and they have given me my account details. I assume it is now safe to credit the account? I need to make an appointment when I get out to receive cards etc.

Thanks for any advice

llanfachreth

Yes that's fine, but you won't be able to make any withdrawals until you prove your identity.

Collie11

Thanks very much for that! Time to get busy then!