# Exchange Rate



## Maureen47 (Mar 27, 2014)

Like a lot of folks I transfer money to Spain when the rate is right , its a bit low at the moment , well compared to how it has been recently , any views on where it is going , I understand from reading some news it was something in China that caused the drop.

How do you guys that have been here longer than me keep an eye on developments ?

I understand that we have to accept whatever it is and love with that but would appreciate some advice on how to get the best deals.


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## Isobella (Oct 16, 2014)

I think we all wish we could have a crystal ball


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## bristolsaint123151262 (Nov 15, 2014)

If I knew what it was going to do I'd be a currency trader. 

No-one knows so you have to guess, but it's going down at present. Stick or twist??


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## Lynn R (Feb 21, 2014)

No idea what it's going to do in the future - I wish I did. I'm just glad I transferred my pension lump sum over here in December (not when the exchange rate was at it's very best, but better than it is now). I intend to use that money for living expenses for the next 5 years, whilst saving half of my pension income which is paid into my UK account so as to replenish the lump sum. I figure that way I won't need to worry about what the exchange rate does for the next 5 years.


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## olivefarmer (Oct 16, 2012)

I keep an eye on it each day. Sometimes I cannot fathom the changes. The money market factors all sorts into its "process". These include oil price, industry output and where interest rates are going. On the latter if the UK Bank of England stated that they were going to raise interest rates to say 5% while EU bank rates were say 1% then money would flood into the UK and that would/might lead to the pound being stronger than the euro. Crude Oil being low might be good for drivers but is bad for the producing country as tax receipts are lower from both companies and motorists. 

My gut feeling is it will keep sinking for a while longer and level out around the 1.28 mark until something major happens either in the UK or in the Eurozone.


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## davexf (Jan 26, 2009)

Hola 

I receive three emails a day with the exchange rate; HIFX, Smart Currency Exchange and Currency Solutions. 

Davexf


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## The Skipper (Nov 26, 2014)

maureen47 said:


> Like a lot of folks I transfer money to Spain when the rate is right , its a bit low at the moment , well compared to how it has been recently , any views on where it is going , I understand from reading some news it was something in China that caused the drop.
> 
> How do you guys that have been here longer than me keep an eye on developments ?
> 
> I understand that we have to accept whatever it is and love with that but would appreciate some advice on how to get the best deals.


I keep an eye on this website although I'm not saying its forecasts are always accurate!
https://www.poundsterlinglive.com/eur/3347-lloyds-right-on-gbp-to-eur-forecast


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## mrypg9 (Apr 26, 2008)

People who plan to come to Spain on low fixed incomes or tight budgets really should ponder these exchange rate fluctuations. 
When we arrived in December 2008, £1000 would have given you €1000. A month ago £1000 would buy you €1420. Today £1000 buys you €1320.
I recall someone recently asking if £800 would be enough to live on. Of course many people live on less but if you are not used to living in a foreign country and have little or no knowledge of the language, these fluctuations which seem set to be a recurrent feature in 2016 and could result in further drops in the value of sterling, what with the uncertainty in the Chinese economy and the ongoing fall in oil prices, could impact adversely on your standard of living.


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## gus-lopez (Jan 4, 2010)

I think it is because the consensus is that the roof is going to fall in again but worse than 2008. One bank is advising sell everything & forecasting the oil to fall to $10 barrel. Not that they were any good in the last slump-.


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## Maureen47 (Mar 27, 2014)

I accept there will be fluctuations and 2015 seemed to be a strange one with some good highs which we took advantage of. Thanks folks for the handy tips, I guess I will just continue to keep an eye on the daily rate and the financial news and see what happens. We made the most of the 1.44 rate so are covered for a good while and the highs can make up for the lows and have to be accepted when you move to another country.


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## mrypg9 (Apr 26, 2008)

I build up sterling then buy large amounts of euros when I think the rate is as high as it will get for a while. I pay the euros I buy into my offshore euro account, keep them there and transfer only the minimum needed for water, electricity and internet bills in my Spanish euro account. Two people I know have had their Spanish accounts hacked and four figure sums taken out and I've heard tales of accounts being frozen because of administrative error on the part of hacienda or trafico.
Of course to be able to buy large amounts when the rate is favourable you need surplus cash which if you come with small amount of capital and a low fixed income you may not have, hence the need to take rate fluctuations into account when planning your retirement.


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## Maureen47 (Mar 27, 2014)

mrypg9 said:


> I build up sterling then buy large amounts of euros when I think the rate is as high as it will get for a while. I pay the euros I buy into my offshore euro account, keep them there and transfer only the minimum needed for water, electricity and internet bills in my Spanish euro account. Two people I know have had their Spanish accounts hacked and four figure sums taken out and I've heard tales of accounts being frozen because of administrative error on the part of hacienda or trafico.
> Of course to be able to buy large amounts when the rate is favourable you need surplus cash which if you come with small amount of capital and a low fixed income you may not have, hence the need to take rate fluctuations into account when planning your retirement.


Thats exactly what we did when we got a rate of 1.44 , not sure we will see that again for a while. I only keep the amount required to cover expenses in our Spanish account as its not cost effective to have any more than that in there. 

Maybe it all boils down to how much you have to play with.


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