My time in South America included two complete economic cycles of boom-bust. In US$ terms, prices and income were low but they both increased substantially in local currency - until the economy busted, a major recession followed and local currency lost most of its value, along with one’s savings. Sort of a rich-poor-rich-poor cycle.
Emerging countries, where most expats go to live, are in a boom cycle right now. Local currencies have appreciated and the value of the US$ (and Euro) is low – meaning the cost of living, expressed in US$ terms, is higher than ever. My question is, what are expats doing? Are you moving your assets into local currency and local bank deposits paying much higher interest rates? Or keeping your money in US$ or Euros, lowering your standard of living, but keeping your funds safe? Or do you have a different approach?
I imagine some folks thinking about relocating abroad are asking this question, as are others already facing this. Hopefully some will share their experiences.
Emerging countries, where most expats go to live, are in a boom cycle right now. Local currencies have appreciated and the value of the US$ (and Euro) is low – meaning the cost of living, expressed in US$ terms, is higher than ever. My question is, what are expats doing? Are you moving your assets into local currency and local bank deposits paying much higher interest rates? Or keeping your money in US$ or Euros, lowering your standard of living, but keeping your funds safe? Or do you have a different approach?
I imagine some folks thinking about relocating abroad are asking this question, as are others already facing this. Hopefully some will share their experiences.