Not Looking Good for the Pound

[panoscouse]

Due to the low value of £ to € it's understandable that less house purchases by Brits will be made in the current climate. In addition the building and supply industry in Cyprus will also suffer.

Last August I exchanged a large amount of sterling into Euros at a rate of 1.42+.
I had planned to do likewise this Autumn but @ 1.16 I have decided to put my building project on hold.

Exchanging 20k at the moment would cost me 5k more than a year ago. I expect that it will take at least 2 years to get back to 1.30 never mind 1.42. I can wait and delay the work I wanted doing but it's the building and supply workers that will suffer greater in the short term if many more people adopt the same approach.

[Jim B]

I very recently had to transfer a large sum of money to pay for title deeds and other commitments and it has cost me several thousand pounds to make up the shortfall; I read one inane comment asking why we were all whinging as nothing had happened apart from the Brexit vote well no doubt that particular person hasn't had to spend any of his hard earned money to find out what we are whinging about.

[panoscouse]

But it's all right Jim, the Great is back in Britain again. Eh?

Plus in 5, 10, 20 years time we'll be back to normal/better off. (many of us will not be here on earth then, I have been hearing these same promises since I was 10 years old, bulls**t comes into mind Jim)

[tony23]

One advantage is that with the pound been lower you will pay less Cyprus tax on your UK income(s)/pension(s)!

An advantage? Have you ever worked out that when a percentage of your income is taxed you still end up with more if the rate is higher? Poor old Trev doesn't even have that advantage. Ye Gods, I give up.
On the other hand, if you were joking, fine.

[keving]

But it's all right Jim, the Great is back in Britain again. Eh?

Plus in 5, 10, 20 years time we'll be back to normal/better off.

Too right the Great is back in Britain. I haven't experienced such positivity and optimism on the streets since 1966. (but we live on Cyprus not UK streets )

[tony23]

But it's all right Jim, the Great is back in Britain again. Eh?

Plus in 5, 10, 20 years time we'll be back to normal/better off.

Too right the Great is back in Britain. I haven't experienced such positivity and optimism on the streets since 1966.

Great, make the most of it, while it lasts.

[lion]

Jim B

Do you live in the UK or have you abandoned UK?

If so your objection to the Brexit is just because it hurts your wallet? (Geoff this forum is called what?)

[juliesewell]

I think "lion" you may want to go over and read the many posts by Jim B on his circumstances and why the Brexit vote is important to him... it's most certainly not all about his pocket money.

[Jim]

Please all remember this site's name, CyprusLiving, although all aspects of life is here, and do I know that, the premise of this forum is about living on the island not in a UK city or town, what has happened has affected life here and day to day living, the pounds fall is hitting some of us very hard, exchanging our pensions just for one, the pounds drop will also have a negative on this island economy that has not hit home this year but next year it will, all holidays to EU countries will become far more expensive, property sales will again be hit on Cyprus, it is bad enough as it is, again we who live here have not abandoned the UK we will always be British, and those who says this are talking complete rubbish in my opinion, I am as an individual no burden on the UK unlike those who choose to live there, we get no further help from the UK once we have made a life on the island.

So can we please keep this thread into perspective this forum is about living on Cyprus..

[Tallulah Savage]

Interesting article on the £ here https://www.poundsterlinglive.com/eur/5 ... eur-to-gbp

[juliesewell]

Some of us living in UK get no help either from the state. Neither of us have any employment yet but because we each have a small pension and a small amount of savings there is not one jot we're entitled to.
We can try to apply for our pensionable year contributions but we have to go through hoops of showing we spend 35hrs a week looking for work.
I have 30yrs in UK plus 12yrs in Cyprus so I think they can whistle....
We shall let the savings keep us afloat as long as possible and see how far we get. I have no intention of working anything other than part time so certainly not spending 35hrs a week looking for work.

[Wee Stumpy]

I think Jules story shows all those who think getting benefits in the UK easy that it isn't! However Jules I would certainly reconsider about signing on if only to receive your contributions for your pension. You only have to state that you are actually seeking work . No one other than yourself is going to know how long you spend!

[juliesewell]

No you don't, they've changed it...... you have to prove you're actively doing "stuff" to seek employment.

In our area, they've made changes and the old job seekers allowance and other benefits will soon all come under a new umbrella called Universal Credit. It's going to be a nightmare for many who have been on long term benefits paid fortnightly, as it will now be paid monthly.

But - and here's the rub.... we were informed last week that the claimants will get the payment to them directly, this means also their rent which they then have to pay to their landlord...
Hmmm, there's going to be a lot of unhappy landlords methinks.

I have all my qualifying years so I'm certainly not going every 2 weeks on a 25 mile round trip just to keep them happy.

[Alan Else]

Well I wish that I'd got a few bob in the FTSE 100 tracker ISAS since Brexit, I've always used FTSE 100 Trackers and never lost money in the long term, put your money in when there's a dip and wait until it goes up. I have made up a spreadsheet that I feed in the daily price of company that I use so I know exactly how my investment is performing.

[Admin]

Honestly this thread is not about investments it is about the exchange rate and how poor it has now become for those of us who actually live on the island.

http://www.xe.com

Bad today at 1.15 this is not good news for us here..

[Tallulah Savage]

Interesting article in today's Telegraph.
http://www.telegraph.co.uk/money/consum ... come-true/

[Happy in Cyprus]

With respect Allan, 7 weeks is no time at all for predictions to materialise; though plenty of time as Jim points out, for the pound to slump as much as it has. There can be few of us on this forum not impacted by this drop.

Lead article in today's ST suggests that Bexit may not happen until the end of 2019. One of the many reasons is that David Davis (Brexit secretary) has so far only recruited half of the 250 staff he expects to need, and they are working from temporary accommodation. And Liam Fox, the International Trade Secretary, is looking to recruit up to 1,000 trade policy experts, but currently has fewer than 100. Apparently, he is also seeking legal advice on his department's precise room for manoeuvre. He can hold informal discussions with potential trade partners outside the EU, but is barred from formal negotiations with them before Brexit. And talk now is of the Article 50 trigger being delayed until the Autumn of 2017.

[Tallulah Savage]

Lloyd.

No problem Lloyd, just passing on articles I see. I know many people, myself included are worried about many aspects of Brexit and this article seems to calm things a little and also dampen the fires of the doom mongers. It will take many years before we know the full impact, something many people would do well to remember!

[Admin]

The problem with that Allan many of us will never see any improvements even if there are any. The Telegraph like all other pundits are guessing.

[wensbry]

This is an emotive subject with the potential to cause rifts between forum members.

In truth the £ has fallen far less against the € than some predicted but if your income is derived from Uk and you live in Cyprus you are going to be affected in a negative way. It is easy to sit here in UK and say that it doesn't matter or it is for the greater good but if you live in the eurozone it hurts.

We are in the process of buying a house in Cyprus and the cost would have increased by £25,000 had our seller not agreed to deal in Sterling thus removing the currency factor.

It would be nice if we could all be mindful of the fact that what might be an opportunity for some is a genuine problem for others.

[jagwheels]

I am not playing the hard up pensioner card but understand the consequences of the topic for many. Asked for €50 yesterday & it cost £47.62. As a tourist what does that rate mean in real terms? Less spending power than last year but I remember when the Cypriot pound was on par with the UK so as a tourist I have a choice. Where do I travel to get what I want? I want to feel welcomed, I want to see the familiar faces & places each year, I want to see some changes for the better in the infrastructure, I want to feel safe, I want to leave feeling better than when I arrived. Over many years those wants have been answered in Paphos. Just my personal opinion so don’t attempt to crucify me for them

[panoscouse]

Wensbry, good post.

Lion. The site is called CyprusLiving as we all know. That means Living in Cyprus for most of us. As you know. Trouble is Most if not all of us live here on the back of our UK income which has fell considerably since the brexit vote. There is nothing you can say to alleviate the long term worry some may have as to the considerable drop in spending power that they may have.

Yes it's a storm that may subside in the future if the past exchange rate fluctuation is anything to go by But that is not guaranteed therefore it is right to be concerned if the current trend hurts your wallet.

The fact is , if you have 3 years disposable income available in Euros then you'll be fine providing local inflation does not increase rapidly. If not then you really need to be concerned. If not then you could be considered as irresponsible.

[Romany]

The pound is still falling and it is difficult to see the bottom at this time. It is a little surprising that the Euro is performing reasonably well considering the financial situation in Greece, Portugal and especially Italy but perhaps this article explains it.
https://uk.finance.yahoo.com/news/pound ... 04089.html

[Jim B]

Interesting article which relates to the fall in the value of the pound and the effect on prices in the UK.

https://uk.news.yahoo.com/british-shopp ... html?nhp=1

[Happy in Cyprus]

It was as sure as night follows day that if the pound dropped significantly in value (it has), imports from abroad would cost pro-rata more and that this would impact the cost of living. Many were pointing this follow-on consequence out well before the vote took place, but it was passed off as 'scaremongering'.

[Rigsby]

but it was passed off as 'scaremongering'.

Ministers Johnston, Fox, Davies & Leadsome will yet have to explain just why they can't do what they promised and why the scaremongering was at least partly true. An interesting few months ahead as the Brexit Ministers start to fall out amongst themselves over the meaning of vote. There is too much interpretation into why people voted to leave. A lot of media comment blamed immigration, but as voters were asked only a single question we will never know.

I think this will be a Brexit fudge with no one being totally happy with the outcome, but is that not the nature of democratic politics?

[neildh]

It was as sure as night follows day that if the pound dropped significantly in value (it has), imports from abroad would cost pro-rata more and that this would impact the cost of living. Many were pointing this follow-on consequence out well before the vote took place, but it was passed off as 'scaremongering'.

I think most people thought this would happen, I think the "scaremongering" was the George Osborne, IMF quotes that everything would fall off the cliff into the English channel

[Lynsab]

In the exchange rate markets today, British Pound Back Above 1.15 Against the Euro as Brexit-Lite and Even Bremain are Discussed ....if just a 'discussion' on a Brexit -lite causes a rise in the rate....then someone previous to the vote predicted right.

[Alan Else]

Yesterday it was reported on UK news that one Bureau De Change was giving parity.

[kisa]

For a change the rate is good for me. I have to change euros to pounds for my daughter education in the UK. Last year I had no choice & had to change at the rate of 1.40.

[wensbry]

I have just bought euros for our trip in three weeks time and got €1.16 this afternoon in UK