Currency
#31
Forum Regular
Joined: Jul 2011
Location: Hamilton
Posts: 73
Re: Currency
Whether we see 1.70 this year depends (I think) on the following:
Factors weakening sterling to NZD:
1. whether the BOE prints more sterling (likely)
2. whether the RBNZ raises interest rates to control house price increases (unlikely)
Vice versa
1. whether the UK economy surges in the next 12 months (unlikely)
2. whether the RBNZ lowers interest rates to help exporters (again, unlikely).
3. whether the NZ economy weakens (unilkely)
What on earth will that do to exports and tourism?
NZ is getting more tourists from the Far East anyway.
I wonder how many people will be tempted back to the UK by selling up here and getting such a good rate? Those who are happy will obviously stay but those with doubts this could be the deciding factor.
Actually, prices in London aren't bad now, if one looks beyond the average - skewed in my view by sales at the top end of the market.
#32
Forum Regular
Joined: Jul 2011
Location: Hamilton
Posts: 73
Re: Currency
A question for those with sterling-denominated investment portfolios: is the weak pound meaning double-digit increases for you?
#34
Re: Currency
At least we make things people want to buy even if low value comodities.
#35
BE Enthusiast
Joined: May 2010
Posts: 526
Re: Currency
http://www.google.co.nz/url?sa=t&rct...-_mEbO9ZX0QgdQ
http://www.google.co.nz/url?sa=t&rct...ujm7VhiMq5PFMA
#36
Re: Currency
Are you crackers? Tourism is(or was) the number 1 earner for NZ!
http://www.google.co.nz/url?sa=t&rct...-_mEbO9ZX0QgdQ
http://www.google.co.nz/url?sa=t&rct...ujm7VhiMq5PFMA
http://www.google.co.nz/url?sa=t&rct...-_mEbO9ZX0QgdQ
http://www.google.co.nz/url?sa=t&rct...ujm7VhiMq5PFMA
#37
Re: Currency
The GBP has dropped 36% in value against the NZ$ in the last 4 years.
From my own position, this is pretty catastrophic. I was hoping to go back to NZ when my Mother passes away, do some part-time work, and then retire after a few years. The exchange rate is now so bad, my chances of doing this are now just about zero.
My 'loss' due to the exchange rate (at present) runs to literally hundreds of thousands of dollars, and makes my return to NZ FAR less attractive than just a few years ago.
Very, very depressing. . . .
From my own position, this is pretty catastrophic. I was hoping to go back to NZ when my Mother passes away, do some part-time work, and then retire after a few years. The exchange rate is now so bad, my chances of doing this are now just about zero.
My 'loss' due to the exchange rate (at present) runs to literally hundreds of thousands of dollars, and makes my return to NZ FAR less attractive than just a few years ago.
Very, very depressing. . . .
#38
Banned
Joined: Jan 2013
Posts: 12
Re: Currency
I was talking to some friends in Oz. They were saying that Aussies consider Nz a cheap destination for a holiday. The NZ dollar has depreciated against the Oz. I think the same probably applies against the Chinese. Not sure. So tourism probably isnt affected that much because theyre the two biggest markets.
#39
Re: Currency
Are a lot of people leaving their money in the UK until they need it? Does the higher savings rate in NZ offset some of the loss?
#40
Re: Currency
Fortunately I don't need it right now, but the ideal would be to buy a house here. I'm getting good rental income on my London property though.
#41
Re: Currency
The GBP has dropped 36% in value against the NZ$ in the last 4 years.
From my own position, this is pretty catastrophic. I was hoping to go back to NZ when my Mother passes away, do some part-time work, and then retire after a few years. The exchange rate is now so bad, my chances of doing this are now just about zero.
My 'loss' due to the exchange rate (at present) runs to literally hundreds of thousands of dollars, and makes my return to NZ FAR less attractive than just a few years ago.
Very, very depressing. . . .
From my own position, this is pretty catastrophic. I was hoping to go back to NZ when my Mother passes away, do some part-time work, and then retire after a few years. The exchange rate is now so bad, my chances of doing this are now just about zero.
My 'loss' due to the exchange rate (at present) runs to literally hundreds of thousands of dollars, and makes my return to NZ FAR less attractive than just a few years ago.
Very, very depressing. . . .
#42
Re: Currency
Some will say it will get worse..I do and yes it will but it has got so bad now I would not change a dollar. My absolute minimum is $2.10.
If that don't happen the money stays put. $1.80 and below? With respect any one who can change at that is so committed to NZ they deserve a medal. If I had been moving now and there had been the drop there has during the process that we have seen in the last 9 months or so I would NOT do the move. Part of the rationale of moving was being cashed up.
The very best of luck to anyone contemplating a big forex deal now and the new life in NZ...you are very, very, very brave.
#43
Re: Currency
RBNZ could try the Swiss approach of buying other currency to remain within a target range. Rates really need to rise now though to bring property in line with wage growth and inflation, a fair bit of this prosperity is unlocked equity and that could swing either way on rates.
#44
Re: Currency
RBNZ could try the Swiss approach of buying other currency to remain within a target range. Rates really need to rise now though to bring property in line with wage growth and inflation, a fair bit of this prosperity is unlocked equity and that could swing either way on rates.
And now that China and Russia are using gold to buy oil....
The Japanese seem to be flushing the yen down the toilet, as fast as it will go.
The Germans seem to be fed up with carrying the rest of Europe, and are getting their physical gold back from the New York depositories - wouldn't surprise me to see them dumping the Euro and going back to the Deutschmark, letting Spain, Italy and the like sink into the ocean.
Have any of you with 'large' GBP holdings considered transferring your stash into physical gold and/or silver? Silver is presently (IMHO) undervalued, being artificially downgraded. At least your money would retain it's value, no matter how far down the GBP drops, and you might even make a profit. Do your homework.... it's a bit of an eyeopener.
And good luck.
#45
Re: Currency
Have any of you with 'large' GBP holdings considered transferring your stash into physical gold and/or silver? Silver is presently (IMHO) undervalued, being artificially downgraded. At least your money would retain it's value, no matter how far down the GBP drops, and you might even make a profit. Do your homework.... it's a bit of an eyeopener.
And good luck.
And good luck.