UK expatriates are staying faithful to sterling, according to research from Alliance & Leicester Int...
UK expatriates are staying faithful to sterling, according to research from Alliance & Leicester International.
Around 84% choose sterling for their savings, while less than a third save in euros and only 5% save in dollars. This trend is more prominent in the over-35s age group, where an even higher percentage use sterling only.
The country of residence seems to influence the currencies in which expatriates hold their savings. For example, 91% of UK expats living in Belgium save in sterling while in Spain the number is only 79%.
Despite the predominance of sterling, investors often invest at least partially in other currencies as well - with more than a third of German and Spanish-based expats having some exposure to the euro.
Any investor under the age of 35 is much more likely to be investing in the US dollar, with 11% choosing dollar accounts.
The lowest percentage of dollar savers is to be found among expatriates in France, where only one in 50 choose dollars for their savings. Those in Spain, by comparison, are four times more likely to choose the dollar.
Simon Hull, managing director of Alliance & Leicester International, said: "Our research shows that the pound continues to be the preferred currency for expat savers, and that perhaps is because it reminds people of home and is a currency they feel they best understand.
"However, for those living and working in a European country, there are significant practical advantages to holding their savings in euros. This research shows a clear opportunity for offshore intermediaries to promote currency accounts for savings as a way to make their client's finances more efficient by removing foreign transaction charges."
Three years at Wells Fargo
Effective from 9 December 2019
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