Pound lower than the euro

[cereza]

Despite some like Fairfx still following the rate up the likes of the Post Office, M&S and High Street Banks are lagging behind with rates of 1-15 to 1-155 today - they really do take the piss!! I had to use my Tesco Credit Card here on Sunday and I got a rate of over 1-15 even on that (plus Tesco points of course ). It just shows how some of these places are complete rip offs. My local Sainsburys opened a FX booth recently and their rates were awful last time I looked - rip off merchants. Mind you they are angels compared to Travelex at the airports

[shanagarry]

Here's an interesting piece I came across in the line of my work:

The Euro is in crisis and Europe is in a financial mess. Euro sceptics feel quite justified in saying 'I told you so' with
many economists now predicting the end of the single currency and even the European Union as we know it.

After all a one sized fits all currency was never going to work. How could the Euro be suitable for a strong Germany with its Lutheran work ethic, and also be right for Greece with its less robust economy?

Well hold on just a minute. There is another school of thought.

This crisis may just usher in what the Euro federalists had always hoped for ; a real supranational political union to march hand in hand with the EU's anthem - which already exists and is waiting brazenly for a happy marriage.

EU finance Ministers, who've just met in Luxembourg, are vowing to police national budgets. According to the EU President, Herman Van Rompuy, this will happen each spring when;

"national budgetary plans will be presented to the (European) Commission and European member states...... A government presenting a budgetary plan with a high deficit would have to justify itself in front of its peers and finance ministers,"

Apparently Brussels will go through national budgets 'line by line' - as if it was homework. That sounds like more power to the EU not less.

It may just be that the crisis is the cause which justifies a United States of Europe.

Something's going to have to give sooner rather than later - so much for the 'recession's over' nonsense we keep hearing. Cameron's 'doom and gloom' speeches are just the beginning

[cereza]

Interesting article shanagarry and I've no doubt that the EU socialist activists do see this as a chance to create a federal state but whereas in the past governments have rode roughshod over the voters and ignored their wishes this time they will be confronted by huge opposition from the unions - we have already seen the strikes and demonstrations beginning. This could be the make or break period for the Eu and the Euro and it will take a brave man to forecast which way it will go.

[shanagarry]

Not wishing to be the harbinger of doom - but having just watched the News at 10 and seen the Spaniards venting their fury at the public sector 5% salary reduction - it won't be too long until we see Trafalgar Square 'hosting' similar events.

What I find frightening in all this is the apparent reluctance of those in the public sector to understand the position and being 'motivated' by former labour ministers (Darling and Byrne) to continue thinking that way. While I accept that the person working for a council has every right to be dismissive of the need for their paltry salary to be cut - there is something very wrong about a system that fails to encourage capitalism and growth through genuine wealth creation. I know I will be accused of 'naivety' by some sections - but surely any doubters with a modicum of common sense will realise the futility of building a costly public infrastructure that chokes every attempt to create wealth.

The more worrying aspect of all this is the future of the single currency and the Eurozone. Anybody with any degree of concern must be trying to envisage a Europe without the single currency and the fallout for those weak countries that have put all their 'eggs in the one basket'. With the Germans and the French out of recession and Britain still mired in a partial recovery situation - the power mongers will soon begin to make demands as they see their positions strengthen - then the 'fun' will start.

Batten down the hatches - were in for a rough ride

[sfuller]

Having monitored the various sites on http://travelmoney.moneysavingexpert.com/ for the last few weeks, we got 1.203 today € to £ for our trip next week which I am pleased with! Did mean a trip to London as most of the best rates were from firms based down there but I was lucky enough to be going anyway so it worked out nicely! also got my Nationwide debit card for other purchases so am set to go!

[jamielyon4]

Another idea we followed and have saved hundreds of pounds each visit...get a fiscal number, open a bank account we chose Santander and then we go £ to Euro through GCEN (global currency exchange network)...we paid a small fee for the bank account and pay no charges to transfer £'s to Euro from us to GCEN and none to our Santander account...we have a debit card and use it just like we do in the uk. The GCEN rate (Global Currency Exchange Netowrk) gives us a rate almost equal to the spot rate. We pay for everything in cash on our visits and by watching the daily rate we can secure transfers at the best rates... last year this gave us over E500 more han using traditional routes...hope someone finds this useful

[tjthedj]

Jamielyon4, we too have a bank account with Santander in Albufeira and with that we get a mirror account in London. we transfer sterling from our UK accounts to the mirror account and they convert to Euros and deposit in our Portuguese account at no charge. Althought we also have a Portuguese mortgage, as far as I am aware, the mirror account is an automatic thing and therefore I reckon you will have the mirror account also.

May be worth checking out.
cheers
TJ

[fmm]

Hi Cereza and PTBUXTON
Thanks for comments - I do have the Nationwide card so will be using that whilst I am away but want to bring some to get me started so I am not at a cashpoint on day one! Interesting remarks about possibly getting Euros in CVO - will ponder that one over next couple of days before I have to make any decisions!

There is a cashpoint by the place you collect your baggage at the airport, and one immediately outside the bit you walk through. Never any queues at either of them.

[jamielyon4]

tjthedj we dont have the mirror account, we bank with barclays and we still have no charge for the complete transfer, its very similar to buying shares, get a verbal quote if you like it you can contract if not wait for a better rate....its down to the rate you get at exchange where you save, Im not sure what rate Santander would offer for the conversion compared to psot rate, we can fix rates for months to come with GCEN so if you are privvy to what the markets are likely to do then its handy to have...

we dont have a mortgage but are about to get one in portugal but we still have the bank to use