Exchange rate

[Sun Properties]

Be interesting to see what happens over the next few days/weeks. Last November there was some panic in Spanish banks when the sterling/euro rate hit parity. I was in a Spanish bank when it dipped JUST below the threshold (for three hours) ... I'm just about to hit Spanish soil and the tourist rate looks like 1.1 with the commercial rate at 1.14. The problems in Greece have only a 3% effect on the rates but when you couple their problems with Italy/Spain/Portugal and Ireland you have, effectivelly, covered one quarter of the euro market. It is a pity that we (in the UK) have such heavy borrowing otherwise I'm sure we would benefit from the strength of sterling against the euro. On the assumption we all like holidaying in the Med it has got to be in our favour when the Eurozone fails .... what a pity that our holidays become cheaper/we enjoy them more when the rest of Europe fails (financially)... I have just had a conversation with a Swiss banker and .... "In Eurozone countries each country are allowed to print their own banknotes ... in Germany certain individuals/firms are starting to hang onto the German printed Euro notes as people in Germany are starting to believe that German euro notes will be worth more than those say printed in Greece" !!!!!!!!!!

If it carries on like this the euro would fail (which I doubt) but hang onto your pesetas!!!!

 

[smg]

Sainsburys were selling € @ 1.089 today, cf 1.10 on Monday

I'm sure a lot of Spanish businesses would prefer a return to the peseta

how many restaurants still price bills in both currencies?

as do shops, although some of the tat has obviously been in stock since before the change to €

 

[Sun Properties]

I think half the enjoyment of holiday'ing in Spain was knowing you would get, say, 160 pts for your £1 or if in Italy 2,000 lire for your £1 so when you had a drink/meal and 'translated' it back you thought ... that was a lot cheaper than at home. Maybe those times are coming back but don't forget there could be a reversal

 

[Smiddy]

No doubt the Euro contributed to the overall price rises in Majorca, not so much in supermarkets were some of them still show the equivelent in psts, more so in bars were they decide to raise, say a pint of beer by a euro. That's nearly a £ on a pint, could you imagine a pub in the UK try to pull that stunt? they would close down overnight!

 

[Labore]

History tells us that whenever there is a general election ( which must happen in May or June of this year.) sterling always falls as the election approaches due to fear of a hung parliament ( which is a very strong possibility this time.)