€ / £ Exchange Rate

The eurozone € has been making some amazing gains against the £ sterling in recent days and weeks and today on the exchanges you could buy just over 95 pence for €1. In most airport bureaux de change you buy less than €1 for £1 now as well (or more £'s for €'s).

Now while this is great news for British exporters - British goods are now way cheaper to buy in the 15 eurozone countries - it's really bad news for Irish exporters as the UK is our largest trading partner. Our goods are now really expensive to buy outside of the eurozone and with the recession biting in in the EU as a whole this is not good news at all.

What does the rest of NE think of this? Will the € hit parity with the £ before Christmas? Will it hit parity at all? Could the ECB's monetary policy (interest rates etc) result in the £ regaining some ground if rates are cut?

Madness!!

I was talking to my dad about this earlier, we both agreed that, due to the near-equal exchange rate, now would be a perfect time for the UK to adopt the Euro.

hmm yeah, would be handy for us northerners if we wanted to travel to the south, and vice versa =)

I'm not really fussed whether we use english monies or the euro. S'all good!

The worst thing for me is that I am expecting 10,000 GBP in cash to help me buy a house here. 6 months ago it was 150,000 RMB, now it's barely 100,000 RMB.

The chinese government need to devalue the Yuan or else their exports are going to seriously suffer.

I noticed it randomly earlier when I was checking some game prices. Damn. Sounds great to me and not just because I can get things cheaper now :P

I was talking to my dad about this earlier, we both agreed that, due to the near-equal exchange rate, now would be a perfect time for the UK to adopt the Euro.

A perfect time to join would have been around 4 years ago, whilst the pound was strong against the euro. Joining now would just be stupid, we would get a crap exchange

A perfect time to join would have been around 4 years ago, whilst the pound was strong against the euro. Joining now would just be stupid, we would get a crap exchange

Yeah exactly. Its good for going from Euro to pound, but not so good for going from the pound to the Euro. I've been watching the exchange rates between the two balance out this week (and in general during the credit crunch), and its pretty mental that they have become so even as it is!

About fucking time, here's hoping it gets lower so I can get even cheaper games from EU sources.

About fucking time, here's hoping it gets lower so I can get even cheaper games from EU sources.

Don't Portugal have the € as well? It doesn't mean prices are decreasing in the eurozone just that the relative prices between the 2 currencies are changing.

Sterling prices are cheaper for us with the € and prices are dearer for England.

Looks like it's time to import!

Don't Portugal have the € as well? It doesn't mean prices are decreasing in the eurozone just that the relative prices between the 2 currencies are changing.

 

Sterling prices are cheaper for us with the € and prices are dearer for England.

If the € is getting valued against the £ than I can import games cheaper from the UK, which are already cheaper than here, and I don't have to worry with customs since its inside the EU.

Edit: Oh, and there's that VAT thing too, so it makes things even cheaper.

Anyway, what decides the value of exchange rates? What so different now for the £ to come tumbling down?

My brother's a currency trader so it's very important for him that we don't take the Euro! Most of his business is in trading Euros so he might even be out of a job if it does happen. So for me it's a selfish...KEEP THE POUND!!

I used to quite like the idea of switching to the Euro, but I dunno....pounds are quite win aren't they.

Anyway, what decides the value of exchange rates?

Fear and speculation - nothing else.

I think its a great time to grab the euro, it will be better than keeping the pound.

Before i thought it was a bad idea, but its really the best now as we wont need to adapt prices.

Yeah exactly. Its good for going from Euro to pound, but not so good for going from the pound to the Euro. I've been watching the exchange rates between the two balance out this week (and in general during the credit crunch), and its pretty mental that they have become so even as it is!

The exchange rate itself doesn't actually effect it as much as you'd think, the parity does more. As the pound will become worthless, and be replaced (not just exchanged) with the Euro, the change is more direct. Remember, more Euro's will have to be physically made to replace the Pound's Sterling in circulation.

The exchange rate itself doesn't actually effect it as much as you'd think, the parity does more. As the pound will become worthless, and be replaced (not just exchanged) with the Euro, the change is more direct. Remember, more Euro's will have to be physically made to replace the Pound's Sterling in circulation.

Minting currency is a very elementary process and and it very easy for a central bank to carry out.

I can't see the Bank of England trying to move towards the € yet as the exchange rate is so bad. Locking in at such a bad rate for the UK instantly increases inflation in the long run.

The UK are a long way off joining the € yet.

It's crazy how many Euros you can get for a pound now. I blame the French.

No way should we change...ever. I can't stand using Euro's - We're fine as we are in this country. No need to go and change it all.

It's crazy how many Euros you can get for a pound now. I blame the French.

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No way should we change...ever. I can't stand using Euro's - We're fine as we are in this country. No need to go and change it all.

That pretty much seems to go echo the general UK attitude.

No way should we change...ever. I can't stand using Euro's - We're fine as we are in this country. No need to go and change it all.

May I ask what exactly is wrong with using the euro? As far as I'm aware, it's a lot easier to not have to exchange money whenever you go on vacation somewhere, or even when buying online.

1?

 

 

That pretty much seems to go echo the general UK attitude.

hmm yeah, would be handy for us northerners if we wanted to travel to the south, and vice versa =)

 

I'm not really fussed whether we use english monies or the euro. S'all good!

generalising FTL.

That pretty much seems to go echo the general UK attitude.

You have no idea how massively annoying it is to live with.

"I don't want the world's strongest, most secure currency, I want one that's going through slow death because... yeah!"

The Euro is awesome, in my opinion. I like the Pound, but I'd rather have a strong and stable currency.

May I ask what exactly is wrong with using the euro? As far as I'm aware, it's a lot easier to not have to exchange money whenever you go on vacation somewhere, or even when buying online.

I've asked this to so many people who hate Euro's here, if I even get an answer, it's hardly coherent.

1?

Exactly, used to be nowhere near that.

What i'd like to know is if we went to the Euro would we keep all our classic sayings based around currency? Such as 'Quid' and all the others? Actually is there any slang for the Euro out there at the minute?

I feel fairly neutral on moving to the Euro. I couldn't see it being soon though.