Re: savings accounts abroad.


"mark" <mark@xxxxxxxxxxxxxxxxxx> wrote in message
news:eKMJdGBM9u3GFwZ9@xxxxxxxxxxxxxxxxxxxxx
What's their rate of inflation?

Hmm. Would that affect the exchange rate when I wanted to change the
Krona's back into sterling?

Of course it would! Other things will affect the exchange rate too,
but all other things being equal the currency will depreciate in line
with their inflation (and appreciate in line with UK inflation wrt the
pound of course).

I believe you can get 500% in Zimbabwe.

Crikey :) Don't know whether I would d trust a bank in Zimbabwe
though
:)

It's the *currency*, not so much the bank you need to trust. Inflation
in Zimbabwe is several thousand % IIRC. Remember that money is just
something created by a central bank. They can create as much as they
want. If they print too much then the currency loses value.

It is a genuine question though, even if it only results in my own
edification :)

Investing in a foreign currency is far more complicated than just
looking at interest rates.

--
Andy


.

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