Will the EX Rate ever go back up?

And the plunge continues...

£1=1.125 Euros...Parity by Christmas?

Techno and family; Firstly welcome to your new home hope you are settling in ok.

Just had a look at your first entry when you opened this thread... £250K = 368,675 Euros; on todays figures its now worth 281,265.

Thats an absolutely shattering loss of 87,410 Euros in just 9 months.

On a personal note the continuing fall in the exchange rate is graphically demonstrated by examining the figures for my pensions.

This month 1618 Euros

Last month 1722 Euros

A loss of 104 euros in 1 month...

Is there an end to it? I dont think so...

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I've been monitoring the rate for the past few days and it's really taking a hammering now...again!

Very scary times.  I too think it won't be long before 1 Euro = 1 Pound.  Never thought that would ever happen.

Justin

I dont believe that Mr Brown can allow parity on the euro -sterling rate, that said it looks as if the UK base rate cut was in vain, I wonder what his next trick to bankrupt the country will be!

Yes Justin, that is what the Daily Mail has said today and that next year people will not be able to afford holidays because of the exchange rate.  

                          Surely something will have to be done, it is very, very Scary.

                                                  Pat

BBC News have just said it is a one to one now euro and pound.

                Pat

Of course Brits will still be able to afford foreign holidays. Maybe not in the USA or EU, but did you know that you can now buy a pint in Iceland for £2.50? Last year it would have cost you £7! Iceland is a fantastic place to visit (don't make the mistake of going for Christmas, like we did, though - everything is closed, but New Year is a huge party, and summer is probably an even better time to go). South Africa is also great value for anyone using Sterling, and another destination I can thoroughly recommend. Long flight, admittedly, but no jet-lag 'cos there's no time difference. And if you want the traditional sun and sand holiday without going long haul, Turkey is still an option.

I don't think GB has much say in what the exchange rate does, really. I don't know how much influence he has on BoE interest rate decisions. If they continue to slash base rate, though, Sterling will only become less attractive, and the ex-rate will drop further. I'm yet to be convinced that reducing interest rates is any kind of solution to the current crisis anyway. The stock market doesn't seem particularly impressed, and I don't see how it's having any positive effect on the housing market. Banks are slow to pass on cuts to borrowers (although very quick to pass them on to savers), or simply don't offer mortgages to anyone without a 40% deposit, and even if it does encourage more lending/borrowing, I just fail to understand how spending more borrowed money can get anyone out of debt quickly. It's all the debt floating around that got the world into such a mess in the first place. has everyone forgotten that? And since there are apparently 7 times as many savers as borrowers in the UK, how can penalising them - the ones who actually have got some money - help "stimulate" an economy? Am I missing something?

As for the ex-rate, I can remember a time not so long ago really, when £1 bought you a little less than 200 pesetas - which would be around about €1.20. So it's been pretty close to this low before, and it will no doubt rise again sometime. Just not for a while yet, I think.

Yes you are right it is the older person that is suffering who has been frugal all there lives and has savings who are being penalised.    There are a lot of pensioner's that rely on the monthly interest on their saving's to pay bill's especially as everything has increased in price.

                               Yes  I remember the old pesetas I think I still have some somewhere, but you are right we still went abroad I took all the children hired villa's and tried to do everything as cheap as possible we still  had a great time. albeit we did not eat out so much as there was a few of us. 

                                I think it will take a while for it to go back up, but miracles do happen.

                                                            Pat      

 I changed most of my pesetas when we changed over to the euro, but about three years later came across a brown envelope in the back of a wardrobe (ah, the good old days of black money deals!) with half a million in it. Oh how I wish it had been euros! Fortunately, the Bank Of Spain in Malaga changed it with no questions asked - although I did get eyed rather suspiciously by a tramp in the queue behind me who was waiting to change some old coins, presumably salvaged from a gutter somewhere!

Somewhere I have a 1953 one peseta note. (No, I'm not that old) maybe worth 1:1 today?

Now is the first time that bank base rate in the UK has been below the EU hence the drop in value of the £ (if not the only reason definitely the main one) and as sure as night follows day our base rate will rise again as will the £. Until then hang in.

Hi all,

Well, as Foxbat said when I started this thread back in March this year the Ex-rate has dropped considerably! But if you take a closer look, when I said that £250k = 368,675€ I was in fact reminiscing back to the rate we would have had in 2006, which was 1.4747.

So as I then said "When we bought our 1st property in Spain back in August 2006, we had an exchange rate of 1.4747, which would have meant that our £250K would be worth €368,675. Now with the rate being so low we will only get €316,500 - that's a staggering €52,175 less!!!!"

Well, way back in July we sent £100k over here and got just over 1.27 and was glad that we did. The remaining funds will STAY in the UK until the rate goes back up, which one day it will, and I think that day might be closer than we think, possibly early next year. Why? Because the focus of attention will then move away from how bad the UK is doing, and focus on Europe, as is starting to happen today and will continue during the current EU talks.

Germany and France are in a better position than the likes of Spain and Greece - Industry verus Tourism - However things are really going to change, and change very quickly, as Germany will start to feel the 'bite' as with such a ex-rate, their Exports are going to cost much, much more!

Something has got to give and soon, else we could possibly see some EU states that rely on Tourism and Foreign Property Ownership talk about LEAVING the Euro all together, and that may also happen early next year if they do such.

REMEMBER, this slide started when all the talk about the Credit Crunch in the states would hit the UK hard, well it did. NOW IT'S EUROPES TURN!

On a BIG plus side, the Euribor rate has been dropping like a stone, and the 12 Month rate is currently 3.513, which means that if the rate stays the same then our Spanish Mortgage Interest rate, which is Euribor + 1% will drop from 6.35% to 4.513% in January next year, saving us 427€ per month! I do however think the Euribor rate will continue to drop, as I expect the ECB will drop the Interest rate again either before the New Year, or very early on into it.

This helps offset the drop in the ex-rate.

Message to Pat and Roy

The elderly population in the UK have not got a clue about trtying to survive in the Uk over last 20 years.

Final salary schemes ruined by both Conservative and labour, hence no pension income for 80% of population.

"Jobs for life" - do not exist anymore

Huge large immigration - way above the Caribbean influx after the war, means low level jobs disppear for the youth

NHS care - struggling to cope but not cause it is bad but becuase it progressively increases life expectancy, thereby increasing burden on those in work, and how many people under 40 are now suffering from postcode lottery of health care treatment due to the success not failure of the NHS keeping us alive.

Anyone under 50 in UK is unlikely to see a state pension, and is being forced to increase working life to at least 70

Over last 10 years due to BOE inflationary target many working people have only seen partial if any increases above RPI, but real inflation like energy prices , council tax prices have rise way over inflationary target every year, meaning a progressive lowering of standard of living.

Many labour stealth taxes are aimed at workers and the tax take of the average family has risen massively over last 10 years, and what do we get in return limited health service, little or now state pension, police force now only reactive

How many poor working soles penalises by speed camera craze whereby the money goes straight to pay Police Force Supernannuation, how many retired folk under pressure to get home to se kids, caught and fined for doing 35 mph in a 30mph zone and pay the Police pension fund £60

I could go on.

Yes you pensioners are unlikely in some respects but your "luck" in living from 60's to late 80's, with huge pay rises, huge pension pots, realistic tax for services, do not realise how lucky you are

HI Alamred,

                   Right I will bite my tongue on some things you have said.   But you do not know anything about our circumstances, when I started work for companies there was no such thing as pension schemes.  So I have only worked for two companies that have provided this and I have to say it is not very much.  Roy worked for a company that had a good pension scheme which went into liquidation and he lost all the money paid in. 

                   I know what you are saying I have 3 children from 30 to 47 and I know how they struggle, but even now I have a daughter that works for a company and there is so pension scheme at all. 

                   You do not have to tell me about the NHS as I used to work for them paying the bills every week so I do know where money is wasted.

                We do not have a big pension pot as you call it and we have lived through some tough times, but have tried to pay for things and not get into to much debt.     

                   I could go on and on but I will leave it at that for the moment.

                             Pat

OK, think we better change the subject - back to the £ versus € debate, and an interesting article here Just one point of view, of course, there are others out there.

Yes their was a guy on the news that does up London Taxis and exporting to different countries  he was saying the rate was so good for him, he could not wait for 2009.  One was actually going to Spain like to know where.

                             Pat

Good overview I just posted here too.

Justin

A friend of mine from work changed up £100 in UK airport last night, and received 97 euros after the exchange bureau took their  commission!

i never ever change my money at the airports or channel ports as they have always given you the worst rates.

I always use the currency exchange shops that have opened up over the past few years like the money shop and others

If you ever possibly need to exchange money at an airport, we have an agreement with Moneycorp for our members.  You can apply for a free Privelege card that entitles you to commission free currency exchanges at Moneycorp airport branches.

It's totally free so it's worth doing.

Click here for more info.

Justin

Good Ole Mr Bumble saves the world...

It would be funny if it were not so tragic that this guy runs the country...

Now down to..... Wait for it......

1.094

That means a Euro will cost you 91.4p

Hmm! At this rate we MAY see 1.00 by Jan 1st as there is talk of the BOE following the FED and cutting interests rates again early in the New Year. Now the ECB WILL do the same, however it is always one step behind the BOE thus making the Euro more attractive than Sterling.

If you look at what is about to happen the Euro zone countries early next year with regards to the BIG 'R' then surely the 'smart' money will go away from the Euro.