Will the EX Rate ever go back up?

I was suprised to see the UK was in more trouble than Spain although i suppose you have to factor in the ability to recover?!!

The UK is in much better state than Spain.  Remember, the Spanish banking system is sitting on hundreds of billions of euros worth or real estate related bad loans which have yet to be written down.  These losses have been hiding on bank balance sheets for the last few years.

 The UK can print more money, devalue its currency and raise taxes to tackle it's deficit.  All Spain can do is raise taxes as it does not have full control of its economy since it joined the euro.

The UK looks like it will grow by 2-2.5% this year.  Spain will be lucky to grow by a tenth of that amount.

 Remember, the Spanish banking system is sitting on hundreds of billions of euros worth or real estate related bad loans which have yet to be written down.  These losses have been hiding on bank balance sheets for the last few years.

Yes, this old chestnut is alwayys rolled out, the truth is nobody knows how much the bad loans amount to only the banks themselves, the Bank of Spain and probably the govenment. Where we get this 'hundreds of billions' from I don't know,however I do agree that the Uk seems better placed to recover quicker. In my opinion Spains major problem is unemployment, if they could get that down to more manageable levels things would improve rapidly.

I think everybody under 25 and not in full time education should be conscripted, paid a minimum wage and set to work sorting out the thousands of unfinished properties(either knocking them down or finishing them off), they could then be rented out as social housing or sold, this would get rid of the property overhang,kick start local economies and start creating demand again.

"The UK can print more money, devalue its currency and raise taxes to tackle it's deficit."

But such methods have been ruled out by the outgoing Government and the current new Government, as these measures would likely stall an already very fragile recovery, and possibly cause a double-dip recession, as the CBI has already warned about!

As the figures show, which is what I've always maintained, Spain's debt to GDP ratio is far lower than that of Greece, and if you couple in strong export potential, then Spain is no where near in as much trouble as Greece.

People always tend to believe rumours!

I'm not saying Spain is out of the woods yet, far from it, but the potential to do so is there, if the Government can crack the whip quick enough, and greedy, unscrupulous profit mongers who trade in bonds will leave out the scare mongering.

Back down to 1.999 when I last

The UK Coast line might not be strewn with empty apartment blocks, but don't assume the UK banks don't have a problem with apartments. Just take a good look around any City Centre in th UK.

John777 - Yes I agree, a several years ago it was stated Leeds had more covering the skyline then any where else in Europe, sadly no more. Now just with half finished projects, Bradford & Manchester just the same. The UK has still a long way to go before things start improving!

On a plus note the exchange rate is slowly getting better!

John777 - Yes I agree, a several years ago it was stated Leeds had more cranes covering the skyline then any where else in Europe, sadly no more. Now just left with half finished projects, Bradford & Manchester just the same.

The UK has still a long way to go before things start improving!

On a plus note the exchange rate is slowly getting better!

Sorry to re-post for some reason my edit button as disappeared?

 1.21...........................hoy

I'll go with Techno

'Back down to 1.999'
 

If you have Vista or 7, there is a currency tool under the gadgets.  Activate it and it puts the currency into the sidebar and you can choose pounds to euros, or dollars to pounds etc etc.

Going to 1.25 / 1.30?  

See here

Hi all

Great news about the pound, however beware the emergency budget its on the 21st June I think. Any changes in the coalitions policy on reducing the deficit could see a reversal if only temporary.

I'm going to change some money now!

S

You know, back when I started this thread on Friday 28th March 2008, I asked the question...

"Anyways, here is my question - will the exchange rate EVER go back up? Every day or so I take a look at the currency markets and the rate keeps going down - currently at 1.266 - which equates to 79p. When we bought our 1st property in Spain back in August 2006, we had an exchange rate of 1.4747."

Well, after 2 years, 2 months, 230 replies and 15,528 views of this thread, the exchange rate has really started to show positive movement, and seems to be gaining momentum.

Currently at 1.212 and it would appear set to go higher!

However, as TeamGB said "Beware the emergency budget on 21st June!"

Let's hope the markets don't get to jittery after the PM's announcement today as to how "bad" the problem really is!!!!

I wonder how long it will take bofore all those who had opted for the good life in Spain and who had been moaning about how bad it was now the pound had dropped will start saying how good it is and that they never said it was bad, it was the others.

I have have said for some time that I felt that by the end of 2010 it would be back up to 1.25 and then and only then would we start to see the property market move again.

Damatt,

I've been thinking the same thing!

However, I think we will hit 1.25 much, much sooner and the property market here in Spain has already started to move, and quickly!

Maybe we should start a coalition Government... but this time, a Welsh Government... Mae llawer doethach

Hi all

we need to transfer some money over to Spain to cover DDs.

Any one got a crystal ball, should we do it tomorrow or wait till after the budget?

Many thanks in advance

Yes I have been wondering that myself have to send some money over.  But just a hunch think I will wait till after the budget, might regret it but it will not be a lot of money so it is worth a gamble.

Pat

Not sure what difference the budget makes?  The UK's problems are well known, and the likely budget measures have been all over the news for the last week or so.

Hi,

I think this is one of the worst things about living or having a place in Spain or any other Country, you have to transfer money into your local account.

Over the last 5 or 6 years, I have used a good number of FX Companies, I have even made the mistake of using the Bank. I have now arrived at a position when I have a Comapny who I have used for just over 12 months and I send money every month to cover DD's etc and provided I send over £250.00 or more, they do not charge and the rate seems to be on a par with those who make a charge to transfer money.

From an email they sent me recently, they have just been voted FX Company of the year for 2010, don't know who by, but hey, hey it sounds good.

If you want the info, go here www.worldfirst.com/?ID=560 and they will give you the info you want.

Cheers

Dave

Thanks for the comments, we didn't get round to doing the transfer today, so guess we may as well wait now, Like Pat we only want to put a small amount over now, just enough to cover the DDs until we go in September. We are ever hopeful that in a few months time we will get a better rate, but doubt it will ever be as good as 1.5 when we bought.

We usually draw money from the Nationwide when we are over (good advice gained on this site) and put it into our Spanish account, but like I say we tend to transfer just small amounts in between - hoping for a better rate soon. 

Yes that is what we normally do transfer the money from Nationwide thought we would be back in Spain by now.  But looks like October now. So will have to send some over.

You never know after the budget it might soar and surprise everyone!!!!!  We can but dream.

We have to think positive.

Pat