# currency risk



## rnj2915 (Jan 3, 2017)

I'm moving to HK in April. I intend to continue to save money each month as "savings". I'll be bringing these savings back to the UK when I return in a few years.

In the latter half of 2016, GBP weakened to approx £1 = HKD10. Prior to that, for many years, £1 = >HKD12. 

Whilst I'm in HK, my savings will be in HKD but I'll be converting them to GBP.

How are people managing the exchange rate risk? I'm not an expert but my personal view is that the GBP is going to strengthen in general over the next few years - which means that my savings in HKD would lose value when I convert them to GBP. 

I don't currently have an expectation for how the HKD might perform over the next few years (and welcome any thoughts). 

Whilst obvious that the fall in GBP was due to Brexit, I'm not looking to engage in any Brexit debates here, and would appreciate any experience people have of managing the currency risk from those in a similar position to me. 

Thank you!


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## siobhanwf (Mar 20, 2009)

The HK $ is linked with the US $
on October 17th 1983, Hong Kong's Currency Board system pegged the HKD to the USD at a rate of HK$7.8 to US$1. In later years, the peg was adjusted to a band of 7.75 to 7.85.

In 1972, the Hong Kong dollar was pegged to the U.S. dollar through the currency board system.


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## HKG3 (Jan 11, 2015)

rnj2915 said:


> Whilst I'm in HK, my savings will be in HKD but I'll be converting them to GBP.
> 
> How are people managing the exchange rate risk? I'm not an expert but my personal view is that the GBP is going to strengthen in general over the next few years - which means that my savings in HKD would lose value when I convert them to GBP.


You can manage exchange rate risk by converting your Hong Kong dollars into GBP in regular intervals (for example monthly).


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