Is the pound set to make a comeback against the Euro?

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mememe
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Postby mememe » Mon Feb 22, 2010 2:04 pm

I would like to think that the pound will rocket ever-upwards against the euro but I fear it isn't going to happen. In consequence, I hold any money I might be lucky enough to have in a mixture of pounds, euros, dollars and (the minority) rubles....

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fredatinsch
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Postby fredatinsch » Mon Feb 22, 2010 2:28 pm

Think I will do the same as mememe, spread my savings and income.
Perhaps a little business sideline!. Caution as ever is needed.

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Postby mememe » Mon Feb 22, 2010 2:51 pm

I just prefer not to put all my eggs in one basket and I'm also pretty reluctant to place my faith totally in the Russian ruble, in which most of my income is earned. Luckily, currency exchange commission charges in Russia are minimal and exchange rates usually pretty good, so it's not a big a problem for me to to change and move currency around.

However, the people I DO feel for are those people in BG who are reliant on income solely from the UK in pounds, be it from pensions or investments. Of course, they have lost out big time over the last 2 or 3 years.

For those who have not yet retired to BG but may be hoping to do so on a company pension scheme, it might be worth looking at something called QROPS

For starters, ee http://en.wikipedia.org/wiki/Qualifying ... on_schemes

As usual, it's likely to be a minefield, of course - so exercise due care.

Sorry MOD - slightly off topic - although it's still about maximising returns from pounds... but please let's not start discussing QROPS here....

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Postby Liliana » Mon Feb 22, 2010 3:20 pm

mememe wrote:As usual, it's likely to be a minefield, of course - so exercise due care.


Interesting reading but lets not really scare people! Pensions are definitely a mine field that's why they have the echelon of 'actuaries' before it even reaches the consultants. Leave them to it. It's essential to take good financial advice from a fully qualified and trusted professional.

I suggest that this thread should be conducted by the Chancellor of the Exchequer (whoever that may be now) and then he/she won't have any more idea that the rest of us joe bloggs on here.

Do hope the £ recovered a bit this year though! :lol: :lol:

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Postby qwerty » Sat Nov 19, 2011 11:20 am

It was interesting to resurrect this old thread to read how most peoples predictions turned out over the years regarding the fortunes of Sterling.

Britain would never voluntarily join the Euro, however in these unpredictable days should another run on the Pound happen,Uk could be seen begging to be let in, remember Norman Lamont anyone??

http://www.telegraph.co.uk/news/worldne ... ister.html

What has been whispered about for a couple of years has now been blurted out publicly, my prediction is more unpredictability :lol:

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Postby dazza » Sat Nov 19, 2011 1:48 pm

I read a story about this in the Independent this morning.The continuing volatility of the Euro would on the face of it help the pound, however that may only be in the short term.If Greece falls out of the Euro, followed by the Italians it would leave a smaller more stable eurozone willing to pursue closer fiscal union.This should actually make the Euro stronger but it seems the Greek and Italian situation may be stabilising.The British economic situation is itself poor with rising unemployment and inflation.The prognosis is probably no great movement either way unless a country drops out of the Euro.

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Postby bigbulg » Sat Nov 19, 2011 4:47 pm

The problems with the Southern European countries is not only the amount of debt, the biggest issue is that they have to repay loans and Bonds which are due imminently. Luckily for the UK, altho we also have huge debts, our bonds, loans and debts are repayable a long way in the future, 9-10 years in fact, at low interest rates, and we have a sovereign currency (£) which can de-value (and has) with the ability to print money. With all the bad news around the Euro you would expect the £ to be a lot higher and i imagine it would have been if we didn't use our "Quantative Easing".
We still have our AAA rating too, our Bonds are in great demand, its not all doom and gloom just yet.
I must add, I do now think Bulgaria is in an envious position (from a Greek/Italian/Spanish/Portugese/Irish and Hungarian prospective) it has lots going for it. Already Greek companies are coming over in droves, attracted possibly by the 10% tax rate tho more than likely the future tax regime of their home country.

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Postby booboo » Sat Nov 19, 2011 4:54 pm

bigbulg wrote:The problems with the Southern European countries is not only the amount of debt, the biggest issue is that they have to repay loans and Bonds which are due imminently. Luckily for the UK, altho we also have huge debts, our bonds, loans and debts are repayable a long way in the future, 9-10 years in fact, at low interest rates, and we have a sovereign currency (£) which can de-value (and has) with the ability to print money. With all the bad news around the Euro you would expect the £ to be a lot higher and i imagine it would have been if we didn't use our "Quantative Easing".
We still have our AAA rating too, our Bonds are in great demand, its not all doom and gloom just yet.
I must add, I do now think Bulgaria is in an envious position (from a Greek/Italian/Spanish/Portugese/Irish and Hungarian prospective) it has lots going for it. Already Greek companies are coming over in droves, attracted possibly by the 10% tax rate tho more than likely the future tax regime of their home country.


Bulgaria will announce a hole in funds within the next 3 months (but if the delay takes it to 6 I'll still bump this). I can't explain much, but expect the enviable position to become somewhat less enviable. ONLY less, not unenviable BTW :arrow:

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Postby bigbulg » Sat Nov 19, 2011 5:11 pm

quote]

Bulgaria will announce a hole in funds within the next 3 months (but if the delay takes it to 6 I'll still bump this). I can't explain much, but expect the enviable position to become somewhat less enviable. ONLY less, not unenviable BTW :arrow:[/quote]

Aha, thats what I like, someone who is prepared to put their reputation on the line, of course you dont have any insider knowledge 8) :wink: .
There was someone a while ago (on this topic) that predicted the £ would be parity with the Euro, at best, a lot has happened in 9 months which many never predicted and i'm certain there's still a lot more bad news to come. So Bulgaria has (oops! will have) a hole (when the world is now talking in Trillions) in funds, can you give us readers a indication of the size of this hole/shortfall etc etc? I may have to alter my investment strategy based on this new information.

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Postby gimlet » Sat Nov 19, 2011 5:20 pm

I think private debt (non-performing) is Bulgaria's biggest problem, along with the usual lack of real growth.

Hungary seems to be falling apart, though it differs in that it's been an IMF case for some considerable time. Nobody bought the bonds it offered a few days ago.


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