If the deposit protection scheme was to ever become needed, i think its safe to say that the countries currency is also going to devalue on the international currency markets. I.E. if an irish bank fails, its safe to say it will have a detrimental effect on the value of the euro.
If i hold deposits with an institution that is either wholly or partly covered by the irish compensation scheme, at what point is the amount you receive fixed back into sterling?
Assume I have £60K in a fictional bank covered by the irish scheme, the bank fails, am i covered for whatever the equivalent euro amount is at the time of failure?
I believe the irish scheme has up to 3 months to arrange the payout, which could greatly change the amount you eventually get back in sterling if you are at the mercy of any subsequent changes foreign exchange rates
Or is the exchange rate not set until the date of payment, ensuring you get back exactly the same amount in sterling as you had invested?
I have asked the irish financial regulator but they have not been forthcoming with any answers.
