As a long-time resident of Japan who is now moving back to the UK, I have a significant amount of JPY in savings that I need to transfer. Given the current poor JPY/GBP exchange rate (worst in at least 10 years), I'm looking for the best approach to manage this transfer.
It's worth noting that I may return to Japan in the future, so it's not unreasonable to keep some JPY currency. Additionally, I already have GBP savings for living expenses, so any JPY I convert to GBP will be used to invest in a low-cost index fund.
I'm considering the following options:
Convert all JPY to GBP immediately: This would provide me with a large GBP sum at the current exchange rate, but I'd be locking in the unfavorable rate.
60% immediate conversion to GBP, 40% kept in JPY: Convert 60% of the funds to GBP immediately, providing a substantial GBP amount for investment. Keep the remaining 40% in a JPY-denominated Wise account in the UK.
40% immediate, 30% scheduled over 12-18 months, 30% remains as JPY: Convert 40% to GBP immediately. Then convert another 30% over the next 12-18 months in a scheduled plan to average out the exchange rate. Keep the final 30% in a JPY-denominated Wise account in the UK.
Keep all JPY in a JPY-denominated Wise account in the UK until the exchange rate improves: Avoid the current poor exchange rate by keeping all the funds in JPY, and wait to convert to GBP until (if?) the rate becomes more favorable.
Based on your experience, what would you recommend to balance my immediate needs, long-term growth, and currency risk management? I would greatly appreciate any insights you can provide.​​​​​​​​​​​​​​​​
by nakanotroll