Best currency after leaving europe

Conachair

Conachair

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Though far off in the distant future I might even go across the atlantic within the next year, assuming that to be so what's the best currency to have? Luckily I should have enough to keep me going in a euro account which got there before the rate dropped. Also have GBP and dollar accounts, dollar/pound/XCD seems to be pretty stable so I'm thinking leave what's left in GBP or dollars. Any thoughts from you lot out there? Or general hints on what's handy to have, I've always found dollars in cash go down well pretty much anywhere if your stuck, is that the case in the Caribbean?

Ta
 
US$ are welcome everywhere in the Caribbean.
However the Euro seems to have 'gone up' in relation to the US$, so might be a good idea to keep your Euros as Euros, and then just change them in a bank out here for local currency as and when required?
The Barbados and Eastern Caribbean dollars are both linked to the US$, so we really notice it if we travel to Europe, or even just when buying anything in GBP or Euros.
 
The honest answer is that nobody knows what is going to happen next - it is little more than a guess. USD is due for a bounce on technicals alone but the fundamentals are terrible. EUR is holding up due to very firm statements from the ECB about keeping interest rates high. Most observers don't believe that can last for long.

My personal view is that the value (i.e. spending power) of most currencies is going to fall at an astonishingly high rate. Don't confuse this with 'inflation' - we are talking about price rises with economic deflation, a truly dreadful combination. Unless you decide to put some of your cash into assets such as commodities, precious metals, or whatever, then you can't do much worse than you propose - keep a balance of USD/GBP/EUR and spend whichever is working best for you at the time. The exchange rates between those three will probably trend back to the 200 day moving average from time to time. The worrying thing for you will be erosion of spending power due to devaluation of the currencies.
 
The euro is presently very rapidly taking over the dollar's old role as 'world currency'. I just came back from SE Asia that used to be a very US dollar dominated area, but the euro has now taken over that role and you will have more problems getting rid of your dollars there than the euro.

However, if you are heading for the Caribbean; that is still very US dollar dominated, except for the obvious euro areas of Martinique and St Maarten.
 
Thanks, Bajansailor. What about day to day, do you have a local account? Can you stick a european visa card into a hole in the wall and get out beer vouchers? I'm assuming yes as Morocco was no problem. Maybe not best exchange rate though.
 
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EUR is holding up due to very firm statements from the ECB about keeping interest rates high. Most observers don't believe that can last for long.

[/ QUOTE ]Lemain, I think you got it wrong again. The euro interest rate is actually significantly lower than the British Pound rate and it has always been that way. It is presently higher than the US rate, but that is because the US Fed has had to make recent 'emergency drops' to shore up their ailing money market. The trailing euro rate is still lower than both the GBP and the USD.

What does this mean for the future of these currencies? Well, there is very good saying: 'forecasting is very difficult, especially if it involves the future'. My two cents worth here is that the euro interest will be comparably stable and the GBP and USD will fluctuate in the near future. This means that I think that the British Pound and the US dollar will continue to be weak, and possibly even weaker, compared to the euro. I am sticking to the euro for my money.
 
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Can you stick a european visa card into a hole in the wall and get out beer vouchers?

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Not a problem in Eustatius, (Statia), or St. Kitts .. I think I drew US $, rather than the local currency.
 
Everywhere in the Caribbean will acept US dollars cash. If you offer Euros cash anywhere other than the French/Dutch islands they will normally refuse it (I'm not even sure some of them know what it is).

In our experience every non-European island has a fixed rate against the dollar. ATM's are no problem for UK cards, whether they are for pounds, dollar or euro acounts. A few island ATM's will offer dollars or local currency (it's not normal though). If you are moving on quickly (and not going back) take dollars if you can.

If you move around islands expect the card(s) to be stopped occasionaly. The banks aren't used to people moving around much. After a year or two they get the message.

If you head to Venezuela definitely take dollars, the black market exchange rate is roughly twice the official rate.
 
The ECB has always had lower base rates than the UK because of differences in the markets between UK and the major EU economies of Germany and France. The ECB has decided not to cut rates while the BoE and the Fed have made dramatic cuts. Leaving aside the intrinsic worth of the currencies (which is impossible to value) the relative change in interest rates has caused the EUR to strengthen relative to the USD and GBP. Do not be fooled into thinking that the EUR is actually a stronger or safer currency, it is not. Major industrialists in Germany have started breaking ranks, calling for the ECB to cut rates. When they do - WHEN they do - the EUR will correct.

EUR/GBP and EUR/USD have been a good ride and holders of the EUR have done well, but like any other major currency pairs they will correct for technical reasons if nothing else. If I could predict exactly when this will happen and the amount of the pullback, I would be dictating this message, not typing it but watch out for a steep correction at any time.

A downward correction does not cause a problem for small cash reserves in a currency that you use for daily purchases - if you live in Euro land you will need Euros so no harm done. However, if you are looking for an appropriate intermediate currency, which is what the OP is asking for, then the answer is much more complicated. Since he will not be spending, in the main, USD, GBP or EUR in the shops, businesses and boatyards if he transfers his funds to EUR at this time he will be converting his (weak) GBP and USD into (very strong) EUR. I think he could end up with large quantities of egg on his face and much less food on his table, which is why I suggested to him that he might consider keeping a selection of the three currencies he already holds, in the same proportions.

The issue of producer nations (commodities and manufactured products) converting from USD to EUR is more political than economic although the recent strength of the EUR gives the opposite impression. I don't think that the EUR stands a snowflake in hell's chance of being the next reserve currency. Something will be cobbled together involving the IMF and probably gold factored in there somehow, until Chindia is ready to take up the baton, in the next ten to twenty-five years.
 
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However, if you are looking for an appropriate intermediate currency, which is what the OP is asking for

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Thanks, looking at it in the morning I think I just asked "what's the best way to play the currency markets?" But I think all's well as it is & before i head too far off the beaten track a few dollars/euros under the mattress should do for emergancies.
 
Debs and I havetravelled all over the world, both 1st and 3rd wotld countries. We've never took travellers cheques etc, we only tookour hole in the wall cards. Draw £200 of local currency as and when you need it, We actually foundmore hole in the walls inPeru than in NZ. This means you get the best axchane rates at the time and your not carrying loads of cash, which makes you a target for crims

PS i do realise not everywhere has hole in the wall facility, but careful planning and forethought.
 
Don't worry, your right here. It's just that living aboard needs some cash and cash is different depending which counrtry you're in /forums/images/graemlins/wink.gif Actually, thinking about it living aboard doesn't have as much to do with boats as you might think. More laundry, best sim cards and where's the best market! /forums/images/graemlins/wink.gif
 
it does get complicated.Most of my pension comes from GB.I pay uk tax by choice.(Dont go There) I live 5 to 6 month in greece ashore and afloat. so pay and live in euros .the other half year I live in India,at present ashore( In company housing) but the new build goes afloat november time.Bits and pieces from UK Europe and Hong kong (USd).Euro debit card,GBP credit and Indian company account.every body takes cash.
Its a daily should I shoudnt I. I think that every time I try to beat the market I get shafted.but its only money(Lost)
 
Hiya,
Well having been fortunate to do this trip a few times, I can reveal what works. As opposed to 'take a guess'.
Every time I go, I take US dollars. Works EVERYWHERE.
Now enough for clearing in fees wherever you end up is sufficient. For a bit of an early float too, You shouldn't need more than about 100 US. Cashpoint machines are now all over the place, so no need to be a robbery target, just get what you need as you need it.
It has worked for me from Venezuela to Bahamas!!!!
Hope this helps.
 
>Cashpoint machines are now all over the place, so no need to be a robbery target, just get what you need as you need it.
It has worked for me from Venezuela to Bahamas!!!!

Do not use cash machines in Venezuela you will get the official exchange rate. Get recommendations for an agent who operates in the black market, there are many and most are trustworthy. Do a bank transfer in dollars and get roughly double the official rate.
 
I dont think the euro will remain strong.I live in Europe!I see more people than ive ever seen stop spending!I mean everyone the average.

At the markets im BUYING fruit & veg with cash as a skipper while others that used to comment on my economy are takeing the leftovers i used to take.

People dont have money to save then no invstement money for the banks,& remember they leaverage,hence the credit problem today!Asset stripping and bank liquidity rules went with the Thatcher revision

In october when im back aboard my shrunken boat ill be back at the market but by then ill have to fight to get a percentage perhaps even starve?My god what will i do??Turn to drink!!!
 
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