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Brexit currency fluctuation scares dont work on expats in Cyprus
| Published: | 14 Jun at 6 PM |
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Tagged: Currency, UK, Citizenship, Cyprus, Money, Euro, Exchange Rates, Pension Transfer, England, Travel Abroad
With the remain/leave debate accelerating by the hour, the latest attempt by the Remain campaign has been to focus on the falling value of post Brexit sterling.
Whichever group is putting itself forward at any one point in time, one thing they both agree on is that the value of sterling will take a significant hit should the UK vote to leave the EU. Expats living across most of the 28 EU member states also realise this, and are able to work out the ramifications themselves. Let’s face it, they’ve been through enough exchange rate movements since they first became expats.
What they may not have realised, however, is that the continuing confusion over Brexit and its effect on ordinary peoples’ lives has been forcing sterling down against the euro for several months now. For example, Brit expats living in Cyprus, have already seen their monthly pension payment eroded along with inflation on prices of imported goods.
Should Brexit become a reality, sterling will fall further and prices for goods imported from the UK will continue to rise, particularly if tax rules were changed.
For those spending part of the year overseas and the remainder in the UK, the cost of travel is sure to rise, meaning fewer visits home and fewer visits to Cyprus by friends and families of expat residents. In the winners and losers stakes, an expat who manages to sell his Cyprus home in order to return to the UK would get more pounds for his euros, whilst expats still sticking it out in the sunshine would be able to buy British goods online at a far better rate.
However, expats in general, not just on Cyprus, are used to working with currency fluctuations, especially if they are UK state pensioners to whom every penny counts. For those still vacillating as to which side of the debate to choose, perhaps it’s a good idea to look at the bigger picture.
It’s not about currency fluctuations, pensions or even the right to free movement. Sadly, expats as well as EU and UK citizens all live in a world controlled by those with vast sums of money and incalculable power. The possibility of an EU collapse as a result of a Brexit is real, and would be followed by a world-wide economic crash which would make 2008 look like a picnic in the park.
Whichever group is putting itself forward at any one point in time, one thing they both agree on is that the value of sterling will take a significant hit should the UK vote to leave the EU. Expats living across most of the 28 EU member states also realise this, and are able to work out the ramifications themselves. Let’s face it, they’ve been through enough exchange rate movements since they first became expats.
What they may not have realised, however, is that the continuing confusion over Brexit and its effect on ordinary peoples’ lives has been forcing sterling down against the euro for several months now. For example, Brit expats living in Cyprus, have already seen their monthly pension payment eroded along with inflation on prices of imported goods.
Should Brexit become a reality, sterling will fall further and prices for goods imported from the UK will continue to rise, particularly if tax rules were changed.
For those spending part of the year overseas and the remainder in the UK, the cost of travel is sure to rise, meaning fewer visits home and fewer visits to Cyprus by friends and families of expat residents. In the winners and losers stakes, an expat who manages to sell his Cyprus home in order to return to the UK would get more pounds for his euros, whilst expats still sticking it out in the sunshine would be able to buy British goods online at a far better rate.
However, expats in general, not just on Cyprus, are used to working with currency fluctuations, especially if they are UK state pensioners to whom every penny counts. For those still vacillating as to which side of the debate to choose, perhaps it’s a good idea to look at the bigger picture.
It’s not about currency fluctuations, pensions or even the right to free movement. Sadly, expats as well as EU and UK citizens all live in a world controlled by those with vast sums of money and incalculable power. The possibility of an EU collapse as a result of a Brexit is real, and would be followed by a world-wide economic crash which would make 2008 look like a picnic in the park.
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