More Lira for your Pound

[Ian]

We are seeing a slow move from a low of 2.22 to a high of 2.40 lira to the pound over the past 4-weeks - a rise of just over 8% why is that Stoop?

Is it the weakness of the lira or the strength of the pound i.e the confidence in the markets in the cuts this impressive coalition are implementing!!  

Ian

Ps Before you scream - my own job finishes in less than 15 months working for a government agency so I am a Turkey!!!!

[Highlander]

Might be bunker time again.

[Ian]

H - it really surprises me that some people focus more on the interest rate as opposed to the timing of the exchange.

You can often make more in that single transaction - we waited regularly in 2007/8/9 for the rate to go above 2.55 before we exchanged money for savings deposits and if we had rushed in we could have exchanged at a full 10% less - really important.

Ian

[davybill]

i think it will be a long wait till it reaches 2.55 again.
surely its better to take the monthly interest rate.

[Ian]

davybill - I agree - but if you had changed 4-weeks ago to get 7% net after tax over 12 months - you would have got 10% net just in the exchange rate last week in a single day and then put it away to get your 7% = 17%.

Clearly none of us "working class" people know the trends but George Soros and Stoop might - if you have their number  

[stoop]

Not sure if I should respond as I am working class as well ;-)

Going Xmas shopping now but will have a little think - my guess is the pound is recovering due to the great government we have in place ;-)

[Ovacikpeedoff]

It is not the strength of the UK economy that has caused the pound to rise, it is really the weakness of the Eurozone. First we had the problems in Greece then followed by Ireland and it is now the turn of Spain.There are also major concerns about Portugal and Italy. Some economists are now even suggesting that the Euro may collapse. The measures taken by the coalition are starting to bite and the unemployment figures have started to increase again.Retailers are now starting to moan as November was a terrible month for retail sales. This in part was hindered by the bad weather. In addition the UK faces a large increase in VAT in the new year which will further hit UK sales.

The long shot of it all is that it is not a time to speculate on the currency markets.

[LeeGlo]

More Lira to the pound is alright for the folks who come on holiday but it's not so good if you are trying to sell a property and know you will be paid in lira. If it keeps going up, by the time the deal goes through you could well be several thousand pounds down, unless you can wait for it to drop again before changing back to sterling.

[Ian]

Good point - I remember in our early days Tribalelder said to us: "If you live here it doesn't matter what is happening with the rate - it is only if you are coming or going that you have to seriously consider it"

Very good advice from a wise man

[Ian]

quote:Originally posted by davybill

i think it will be a long wait till it reaches 2.55 again.
surely its better to take the monthly interest rate.

2.48 and rising?