Hi Trev

I'm sure it will - its also causing alot of the Brits living in Malta to "tighten their belts" - I think spending on things like eating out by expat Brits is likely to fall substantially - it also makes Malta property alot more expensive to Brits, so may well worsen the Maltese property market as well

It's only a matter of time but 1Euro will = £1.00. Tighten those belts.

happy to bet we will see 1.40 before 1.00 - willing to take me up on that ?

Mark do you mean £1 = €1.40? If so I hope you're right,

Trev

yep, thats what I mean

Go on then i,ll have 8 cents on that, Is there a time limit though, I dont have as much left as you.

trying to scare me off are you ? your bluff is called - 8c it is, and I don't accept cheques without a bankers card

"I dont have as much left as you. " - is that time or c ?

Can we get back on topic now please

Biff

Cheers Biff,

This really is a serious problem because if the £ devalues too much against the € I for one couldn't afford to holiday anywhere in Euroland let alone Malta. I'm certainly other folks will also be in a similar position especially with food, energy and other ever increasing bills we are all facing in the UK!

Is there any reason anyway why the £ should strengthen against the € other than Mark's hunch?

Trev

"Is there any reason anyway why the £ should strengthen against the € other than Mark's hunch? "

I'd say so - last year it was about £ weakness - this year, the £ is roughly unchanged against $ and yen - 2008 has been about Euro strength not £ weakness - so why has Euro been so strong ?

ECB's mandate is to keep inflation about 2.5% - its been way higher despite the deflationary consequences of a strong currency - why ? alot to do with the rigidities in the Euro zone labour markets - forced to increase rates due to inflation

Fed's mandate is both low inflation and sustainable growth, so have been able to cut rates despite higher inflation

£ is caught in the middle - less labour market rigidities than Euro, but BOE has inflation-only mandate

once Euro inflation subsides, then ECB will cut rates - Euro will fall, $ will rise - £ will rise against the euro, fall against £. The Euro is already over valued, it just needs a trigger for it to fall - G7 meeting last weekend could have been it

Phew Mark,

What a reply!

I certainly hope you're right,

Trev

i hope so too............

so do I.....

Of course Mark is right, i,ve put money on it!

Ok...lets be serious now..

Rob and I were hoping to squeeze in a week's diving and exploring again in Gozo around August. I know it is the most expensive time..but the feasts are such an experience!!! anyway..we are seriously doubting if we can stretch to it as the £ is so weak against everything never mind the euro..we have Egypt coming up in June and Thailand over Xmas ( and we pay for the boy who is classed as an adult but is really not as he is 15) so that will probably skint us out this year...so something has to go and it looks like being Gozo.

the £ isn't weak against everything - its still very strong against the $ - I think the US will see strong growth in tourist arrivals from the UK, as may places like Mexico

Best rates of exchange in the UK at the moment is :- £1 = e 1.22.
What are the best rates in Malta?

spot rate as I type is 1.2611 - to get within 2% of that is very good for changing cash, so 1.22 is not far of that - according to http://travelmoney.moneysavingexpert.com/ best in the UK today is 1.23 at Thomas Cook - best is a Nationwide debit card which will get you very close to the 1.2611, probably 1.259.

Nationwide it is then. I don't live near enough for "best in the UK today is 1.23 at Thomas Global Exchange "

Free to collect from its two branches located in London's West End

Anyone know what the rates are in the exchange shops?