Investing in RON or EUR?

[platorepublic]

- Now assuming I only know how to invest my money in time/term deposits.

- The banker at my bank advises me to keep my money in Euros and not Romanian Lei because it is not a stable currency and we do not know what will happen to Romania's economy.

- Now I checked the RON/EUR and for the past few years range from 4.2 to 4.6. I do not know what will happen in the future. I am not an economist, I do not know what other factors I need to take into account.

- I live in Romania, but I am not a Romanian. I think I will live here in the long term.

NOW here is the decision I have to make:

The RON time deposits are double the %p.a. of EUR time deposits. What would you do in my position?

[lorraineb]

Day to day living expenses emergency fund money goes to accounts where you live, retirement account $$ in the country you plan to retire in.

[cardtrick]

- Now assuming I only know how to invest my money in time/term deposits.

- The banker at my bank advises me to keep my money in Euros and not Romanian Lei because it is not a stable currency and we do not know what will happen to Romania's economy.

- Now I checked the RON/EUR and for the past few years range from 4.2 to 4.6. I do not know what will happen in the future. I am not an economist, I do not know what other factors I need to take into account.

- I live in Romania, but I am not a Romanian. I think I will live here in the long term.

NOW here is the decision I have to make:

The RON time deposits are double the %p.a. of EUR time deposits. What would you do in my position?

No one can predict the future. You could diversify by converting to several currencies. Gold is also a good alternative but gold does not pay coupons or dividends. But note that unless you have a lot of money ($1 million+), you will get ripped off on the exchange rate.

[97guns]

im no economist either bit i do know they are rioting in spain, italy and greece all because the euro is in big trouble

[platorepublic]

No one can predict the future. You could diversify by converting to several currencies. Gold is also a good alternative but gold does not pay coupons or dividends. But note that unless you have a lot of money ($1 million+), you will get ripped off on the exchange rate.

So true about the losing when exchanging currency. One has to take account of that too.

[snafu]

Currency speculation adds a further element of risk to savings. I'm not familiar with the E European economy and whether they follow accepted international accounting standards. The information we see on the Euro is chilling.

[97guns]

heres a quote from another forum i hang on



I wouldn't doubt it. Here in the UK a few big pension funds have been raided to pay for austerity measures. My mother's pension has been halfed and my mates Dad has had 2 of his 5 Pension accounts taken off him by the Government.