Ozziedream

Will be moving back to the Uk from Oz Feb 2010 and have some savings in Oz dollars that I will want to transfer to UK. Very tempted to transfer it over now due to exchange rate. Any advice appreciated.

johnh009

Hi there, I am in Canada and have decided to make the move back to the UK now for two reasons: one, a 20% drop in sterling and I can probably pick up a bargain in the property market. The trouble with the UK is that they think whatever the Americans do, they must do. When Hank Poulson (from the Bush administration) told them to deregulate the financial system, they did. Canada, in comparison, adopted the British system of bank regulation and stuck with it. Hence, Canadian banks are in good shape and so is the property market.

When Gordon Brown addressed the US congress earlier this year about the financial crisis and mentioned that this is a World problem and we are all in this together, he failed to mention that the problem started in the US. Twit.

Ozziedream

Thanks for that but doesn't help me much I'm afraid. Not in the privileged position of picking any 'bargains' up in the property market or otherwise. In fact will just have these meagre savings to help get me on my feet on my return and just want to make it work for me.
Thanks for reply anyway.

hitchw

depending on the amount you have it could be worth hedging some of it in a forward contract until you move back and then just doing a direct transfer on the balance when you move.

Ozziedream

OK. Thanks for that. Don't know if you can help...but do you know if its possible to open UK bank account while still residing in Oz?

hitchw

i think it depends if you still have a uk address where you receive any post, ie, insurance, statements, bills etc... then you should be able to do it. if not then you could open an oz based sterling account for the time being with one of the big banks and use that to hold your funds. that could be an idea as you would still be able to get the exchange rate at the moment.

johnh009

There are two ways, one is to open a non-resident bank account, I opened one with the Halifax. The other is to open an account with the HSBC who will transfer your money to the UK (for a fee) and have your account up and running for when you arrive.

http://www.hsbc.co.uk/1/2/personal/t...F0Gn:12c58sh8k

Ozziedream

Many thanks to both for great advice. X

johnh009

Your welcome. I have done like hitchw says and opened a sterling account with the HSBC here in Canada. Then I will transfer the cash to the UK when I am ready to move. The Bank of England have just printed another 50 billion so maybe the pound will take another beating.

Also, at least here in Canada, I found the HSBC offered one of the best exchange rates. You can also use this site as a guide:

http://www.xe.com/

Windsor2

Ozziedream

A quick overview on what's ben happening with the Aussie Dollar.

Over the past year, Sterling has been incredibly weak against all its major counterparts amid concerns about the state of the UK economy. Increasing levels of debt coupled with a high dependency on the fragile financial services sector has undermined confidence in the Pound. Whilst the Australian Dollar has also been very volatile, rising commodity prices coupled with the belief that the Australian economy is better placed to withstand the global turmoil has kept the currency relatively strong.

Going forward, we feel that Sterling is still undervalued despite recent signs of recovery. In contrast, the Australian Dollar is in overbought territory and looking vulnerable to a correction.

However, we must also remain respectful of the long term downward trend in GBP/AUD that at the time of writing remains unbroken.

With risk in both directions, coupled with the extreme volatility that is currently being witnessed in the currency markets, whether you change some or all of your money is up to you. If you're on a tight budget when you get back to the UK and can't afford for the exchange rate to move against you I'd suggest you look at moving some now and some later. If however you're less concerned then by all means hold out for a better rate - you may be be right and you might be wrong.

Please don't hesitate to get back in contact if you need anything else or if anything in this email is unclear.

Best Regards

Mark

Mark Bodega
Director - HiFX
www.hifx.co.uk

greghal

ozziedream i would say that where rates are tathe moment is a 15 year higher as far as the ozzie is concerned, if you are going to be moving back it is a great time to be securing your exchange rate.

Ozziedream

Thank you again for everyones help. It really is very much appreciated.