Avoiding depreciation by inflation of capital in the UK by transferring it to a Thai bank

[Virtualrecluse]

I hold a sum of capital in the UK. Projected inflation this year is 18-22%. If I transfer it to my Thailand (I already have a bank account) where inflation is much lower, does this provide me with a hedge against inflation (assuming I later retransfer it if and when the THB is at its strongest point vs the pound)?

Thank you

[BritManToo]

1 minute ago, Virtualrecluse said:

does this provide me with a hedge against inflation

Only if the Thai Baht doesn't suddenly change to 90 to the pound.

Or your Thai bank doesn't go bust.

 

I prefer to keep my money in the UK earning 0.1% interest, than risk having it in Thailand.

 

[proton]

You can get at least 3.2% interest in a UK bank for a year, what bank offers that in Thailand?

[gamb00ler]

In the case of foreign funds, the more relevant question is what direction the exchange rate will move.  There are so many factors that influence those rates.

 

Inflation in prices and wages should weaken a currency.  To fight inflation a country's central bank will generally raise interest rates which often causes an offsetting strengthening of the currency.

Edited August 31, 2022 by gamb00ler

[scubascuba3]

It all depends on the exchange rate, £ may get stronger to THB. Doesn't matter if Lurpak is up 50% in UK

Edited August 31, 2022 by scubascuba3

[dick turpin]

Even better idea, transfer it to your wife's bank account

In Thailand...........what can possibly go wrong.

[Everyman]

You’re trying to be too clever about this. There are inflation protected investments in the UK. Look at those.