Hi

My savings are being held in Singapore Dollars which has increased against the pound over the last year.

Some bearish views are that the pound still has a long way to "tank", I'm never sure of how other people would quantify a currency tanking. 5%, 10% 50%?

Just wondered if I could get some views on here.

Should I just transfer it back to pounds now and keep it offshore (IOM or Jersey)? I'm working overseas - but alas not Singapore. I just think the offshore sterling interest is now much higher than any likely gains the S$ is likely to make. And Singapore interest rates are appallingly low.

Peter Schiff keeps talking up the Singapore dollar, particularly regarding it's potential to strengthen against the US dollar. If the UK and US are in the same situation, is the pound likely to follow the dollar downwards.

Any thoughts much appreciated.

Could I have some help!!! You might be able to answer my question!

http://www.housepricecrash.co.uk/forum/ind...showtopic=79522

Thanks!

For what it's worth, I think the dollar will rebound in the short term, making the pound look weak (maybe it'll break $1.90...). We'll also get a pull-back in oil, gold, etc. The Euro, well... if Trichet raises then they've already said it won't be a series of rises and you really can't expect anything beyond $1.60. There is this "problem" with July, the date that two US investment banks have said will be a "peak" oil day ($150 short term spike). Circumstances could conspire to push the dollar lower, the Euro higher and gold higher in the very short term in this case. But the Saudis are involved now, and they *may* be turning on the taps for another 500,000 b/d field at the end of the month.

The pound has already been sold off, twice, on Merv's invitation. Last time he sent out a coded message to push the markets to do it again, the pound hardly budged. Good old Labour know what they're doing and what the conservatives got wrong in their early years - don't embark on financial catasrophe with an over-valued currency, or you won't get yourself out of it for years.

The Singapore dollar is pegged against a basket of currencies, which is why Schiff likes it. Singapore isn't this magical place - it's small, its GDP is small and it's energy intensive. People have speculated that the S$ will rise further because they can allow it to do that, and indeed it might. But as you said, interest rates are low so how much are you earning while it sits there in a CD?

The main problem with Asia now is inflation. I expect the largest inflations will be felt in China, India, Vietnam (inflation running over 25%) AND Singapore. I read somewhere that Singapore's inflation has jumped to over 7% YoY recently and producer prices are up 18% on a year ago. Recent government stats don't show up the 7% inflation figure though, so I'm waiting for confirmation.

Speaking personally, I'd convert to £'s and get the highest return you can. As an offshore saver does this mean you can legally get tax-free income because you are UK non-dom? If you can get 5.X % tax free, I'd say go for it...

All in my personal opinion of course...