Dramatic currency fluctuations in the last week should remind expatriate savers they need to take account of currency risk on their savings, writes Charlotte Beugge.
Last week, when the bad news about UK gross domestic product was announced, sterling fell 1.5 per cent against the euro and by a similar amount against the dollar.
If you hold your savings in sterling, as 40 per cent of UK expatriates do, such fluctuations can seriously damage your wealth. After all, if your savings are in sterling but your spending is mainly in euros then it means you’ve got less cash to spend.
And last week’s currency move was not a one-off. The jittery world economy means currencies have become increasingly volatile.