Which currency is safest?

[arabianights]

Look at this.

Over the last couple of months I've been becoming completely paranoid about currency. I can't think that any of them are especially safe. Even CHF which most of my money was in till Friday where (I now think foolishly) I hedged on the GBPCHF collapse has large exposures to banking and emerging markets.

Which currency should you keep most of your money in? I have emergency funds in a few different currencies now but am looking for a safe haven for most of it - and can't find any!

 

[wasp]

Yuan!

Most of mine is in NZ$ as it goes.

 

[arabianights]

The problem with the yuan is you have to put it into vending machines sideways

 

[wasp]

FYI Arabian...

I'm sure you have already done this but............

 

[Rhody Trader]

Which currency should you keep most of your money in? I have emergency funds in a few different currencies now but am looking for a safe haven for most of it - and can't find any!

Why not just hold a basket of all the major currencies? They are pretty much all just going to appreciate and depreciate vis-a-vis each other.

 

[davidnmfarrell]

The Argentine peso is looking solid

THIS IS NOT ADVICE

 

[LuckyFX]

Look at this.

Over the last couple of months I've been becoming completely paranoid about currency. I can't think that any of them are especially safe. Even CHF which most of my money was in till Friday where (I now think foolishly) I hedged on the GBPCHF collapse has large exposures to banking and emerging markets.

Which currency should you keep most of your money in? I have emergency funds in a few different currencies now but am looking for a safe haven for most of it - and can't find any!

Identify currencies that you think are weak and short them relative to ones you think are somewhat strong.

I think it's a lot easier to identify weak currencies right now than "strong" safe-haven ones, and you can use them to preserve your wealth just the same.

BTW, if it isn't crystal clear, USD and JPY are *the* safe-haven currencies of choice right now. Long-term, who knows.

 

[Rhody Trader]

BTW, if it isn't crystal clear, USD and JPY are *the* safe-haven currencies of choice right now. Long-term, who knows.

I definitely wouldn't be calling the JPY a safe-haven currency at the moment. It's not going up because of that. Carry trade unwinding has a massive amount to do with it.

I'm not even convinced you could call the USD a safe-haven play. I'd argue that it's gains have been created by the huge demand for dollars caused by this credit crunch - meaning USD needed to fufill commitments. That's why the Fed has created essentially unlimited swap lines with the other central banks, because there's a shortage of USD liquidity.

 

[nine]

I'm with Rhody, minimum regret comes from a mixed basket. I tend to weight it towards where I'm going to be living.

For me at least, speculation is a different realm to protecting the currency I need to live with.

 

[LuckyFX]

I definitely wouldn't be calling the JPY a safe-haven currency at the moment. It's not going up because of that. Carry trade unwinding has a massive amount to do with it.

I'm not even convinced you could call the USD a safe-haven play. I'd argue that it's gains have been created by the huge demand for dollars caused by this credit crunch - meaning USD needed to fufill commitments. That's why the Fed has created essentially unlimited swap lines with the other central banks, because there's a shortage of USD liquidity.

I'm well aware of the reasons for the high demand for JPY, and agree that USD is partially in demand because of reasons besides safety.

What matters is, when everyone got scared, people started buying up JPY and USD.


If "safe-haven" currency means insulated from international market crisis, there isn't one.

I'm in agreement with the basket currency suggestion - if you want to make sure your own country's blunders don't make you relatively worse off than the average person, just spread your money everywhere.

 

[Jaydee]

What about the QUID - Quasi Universal Intergalactic Denomination?

BBC NEWS | Business | New currency for space travellers

 

[Gumping]

Buy a white vest, dip it in some mud and grease and smear some blood over it.

Buy a pump-action shotgun.

Put on the vest (Be sure to do this after buying the shotgun)

Change all of your money up for gold bars.

Sit on the pile of gold bars with the shotgun and proceed to pump the gun whilst looking mean if anyone walks near.