The falling value of the pound against the euro

[beverleyp]

Hello Again Sailors... my husband and I are going to the Silver Coast for a six month recce from October to see whether we would like to settle in the area. However, we are dismayed at the way the pound is falling ever lower against the euro. Can anyone comment on how this is impacting on the cost of living in Portugal please?. Also worried about the value of our pensions although these have some years to run yet. Thanks for any feedback on this.

Beverley and Peter

[jojo]

Well we're in Spain and the falling pound aint doing us any favours!! My husband works and earns in the UK. We're just sittting it out for now, hoping things will change as are alot of retired folk on UK pensions... but for how long????????????? I think it would be easier to pick the winning lottery numbers than to guess where the pound/euro are heading!


Jo xxxx

[silvers]

Hi Beverley and Peter,
The simple answer is nobody knows. You just cut your cloth to what you have. Most British are having to learn to live with what they have. You can still eat in a good restaurant for around 20 euros for two. Things like car insurance used to be the equivalent of £120 now it's over £220 and that's all because of the weak Pound.

[Suenneil]

Hiya

As Jo said we have this on the Spain forum a lot! and unfortunately none of us can accurately predict how its going to go ... I did post an article on the spain site abour an hour ago that I took from the UK papers today ... Ive pasted it below. Its not looking good .... but who knows!

My parent retired to Tarragona in Spain earlier this year and already they say they have seen a big increase in their cost of living (they have their UK pensions transferred over here every month) ... they appear quite shocked at the moment at how expensive it seems compared to just under a year ago ... and they hoped to retire in Spain to have a better standard of living!

Sue

Millions of Britons face another hike in the cost of travel today after the pound fell to a five-month low against the euro.

The exchange rate dropped to 1.1016 euros per pound after the Bank of England warned that the UK’s record debt is putting off investors.

It means items purchased in the 22 countries which use the single currency will now cost 6 per cent more than they did last month.

Until last month, sterling’s value had been slowly rising since it sunk to an exchange rate of nearly one to one last December.

In August it was worth 1.17 euros.

But since then the pound has lost value virtually every day – renewing fears it will once again hit parity with the euro by Christmas.

The fall in the value of the pound against the euro has sparked renewed fears the two currencies will hit parity – or becomes less valuable.

‘We were here last October and we headed down to parity against the euro by Christmas. I think we are going the same way again,’ Mark O’Sullivan from Currencies Direct told the BBC

[John999]

In my opinion we will be lucky if the Pound can get to the 1.20´s and stay there as it will be impossible to go back to the values we was used to. The rest of the main EU countries want England to join the Euro coin and they will increase the pressure on it until it happens
John 999

[Am87]

The US and the UK have similar situations. My solution is to just keep a little USD around to pay bills. The rest is in Australian dollar funds and foreign investments. I mean how low can brazilian oil producers go, when there is tension in the middle east?

[Mr.Blueskies]

"Lots of stuff growing all over here, so you aint going to starve ! Off out now to forage for some winter firewood and pine cones. I do luves this back to
nature stuff.

[PETERFC]

Hi Mr.Blueskies

Nature boy? not been looking for a beach to practice on?


Peter

[Mr.Blueskies]

"Far too busy Pete, storing up nuts for the winter plus checking my traps
and setting my night lines ! I have also started lamping rabbits. You just go out after dark with a strong lamp and shine it in their eyes. They stand stock still and it is just a matter of bashing them on the napper with a club.

"Rabbit stew ! Yum yum.

[MrBife]

I left a steadily developing career in the UK twenty years ago, took a big hit in income at that time and moved to Portugal as I decided it was a 'nicer place to be'. I have spent that time learning how things need to be done here, finding my 'niche', learning the language and re establishing myself in business terms.

I now earn a living in Euros, for me the fall if the value of the pound is excellent as it makes buying anything I want in the UK fantastic value.

Just an alternative viewpoint !