Expats 'hit by falling pound value'

Tuesday, April 13th 2010

Britons who have moved abroad may find their finances affected by the falling value of the pound, it has been claimed.

Rhiannon Davies, co-founder of lifestyle magazine Shelter Offshore, explained that those who are paid in sterling currency may be suffering.

"If the pound's value falls further, those who attempt to live on an income paid in pounds abroad are negatively impacted to an ever-increasing degree," she claimed.

This is because everyday products become more expensive when sterling is converted into local currency.

But making informed choices about how to transfer funds could save British expatriates money.

According to Reuters, the value of the pound against the euro was at €1.13 on April 12th - down from €1.53 in January 2007.

Ms Davies stated this is down to the "dire position" of the UK economy, which is expected to take a long time to recover.

Retirees who live in the eurozone are likely to have seen a drop in their pension income and there is not much support for this group, she added.