Why is the pound in a state of collapse ?

[John50]

I just did a quick internet search and this is one of the pages I turned up.

Open UK Bank Account from Abroad? | Ask Metafilter

I would love to open another UK account but every high street bank or building society I have checked seem to ask for proof of UK address. I bow to your knowledge though and wonder of you could reveal which Bank/Building Society let you do this. I currently bank in the UK with Nationwide having been with them for years.

I am very wary of offshore sterling accounts having read of the plight of hundreds of expats who lost everything with banks based on the Isle of Man where apparently there are no guarantees and i don't overly trust some of the banks here either. As I have said, good old Nationwide. Low interest rates but fairly safe, I hope.

[Chrisdee]

We have a couple of bank accounts and they know we live in Spain, we receive our mail here (if we're lucky!). Nothing has ever been said, in actual fact when all the banks were going under (Sept/oct) we had to safeguard our savings and needed to open up another bank account and I remember my husband having to go to the library to use the computers and and print off an Iberdrola bill for proof of address.

I have always thought that unless you maintained a UK address, you were not entitled to have a UK account. Where would the banks write to you, for example ? I might be wrong but every on line account I have ever looked at back in the UK asks that you confirm that you are a UK resident.

[John50]

I have always thought that unless you maintained a UK address, you were not entitled to have a UK account. Where would the banks write to you, for example ? I might be wrong but every on line account I have ever looked at back in the UK asks that you confirm that you are a UK resident.

[Chrisdee]

Why shouldn't we have a UK bank account?

As I use them as well, I so hope Nationwide always remain kind to us ex pats who really shouldn't be having a UK bank account at all !

Good to see 1.09 today.

[John50]

Many of us will feel a real sense of relief if the pound recovers somewhat. I for one have been very worried about my ability to pay my way here in Spain.
As I write at 1.112 to the pund. The BofE meet tomorrow to discuss interest rates and the ECB next week. Let's hope for some stability.

[Peter_essex]

Nothing to do with this thread but I am curious to see what happens considering what has happened to other threads this evening. If you are expecting some great insight into the state of the pound please do not visit this link you will be dissapointed.

[torry]

I think it is because the euro has become overvalued and is causing big economic problems for some eu members particularly Spain, Portugal, Italy and Greece.

[yllig]

From thisismoney.co.uk site on Monday.

Ian Stannard, senior currency strategist at BNP Paribas in London, said: 'In the near term we can expect quite a significant bounce for sterling. The fall in the pound was exaggerated and overextended in December. We see sterling pulling back quite sharply.

Henrik Gullberg, senior foreign exchange strategist at Deutsche in London, agreed: 'Sterling looks very undervalued. It is way below where it should be against the euro, if you look at the fundamentals.'

The turnaround in sterling's fortunes came despite the fact the Bank of England is expected to cut interest rates by at least half a percentage point on Thursday from the current 2% level. Traders said a cut was already priced into the value of sterling.

Reports that the British Government may guarantee the market for asset-backed securities to improve bank lending also gave a fillip to sterling.

Stannard said the euro was sliding on fears for the eurozone: 'We know already that things are bad in the UK but the market is only just waking up to what's happening in euroland. We think the European Central Bank is going to have take more aggressive steps [to cut rates]. The ECB has dragged its feet.'

The ECB may find it easier to cut rates when it meets on 15 January after inflation figures today showed prices fell by more than expected in Italy and Spain in December.

Analysts pointed out that some of the euro's unexpected strength came from European banks repatriating euro funds to settle accounts by the year end.

This may explain it in part.

[6mauledrv]

Exchange now 1 GBP = 1.11 EUR
Anyone know why this is happening against all predictions?

[Warrior]

Good for Nationwide, it used to be the same with the Woolwich until they were taken over by Barclays. They replaced our ATM card shortly after the takeover and looking at the small print we noticed that we could use the card at any ATM but not outside the UK !!!!
And I thought you had to be intelligent to work in a Bank...........silly me!

[John50]

As I use them as well, I so hope Nationwide always remain kind to us ex pats who really shouldn't be having a UK bank account at all !

Good to see 1.09 today.

[6mauledrv]

We took out 5500 euros over the space of 10 or 12 days a few weeks ago (£300 each a day from Nationwide account from cashpoint). Rate ranged from 1.15 to 1.11.

We have enough to last us now for bills etc until June this year, but if the rate goes back up we will just use our credit cards for most things and save the cash for the rest of the year.

Sterling claws back ground from the euro | This is Money

Another positive article.

Yes, I did the same a few weeks ago. Not bragging, but I got around 1.20, as you, via the Nationwide. We actually took out 600 euros a day because my wife and I both have NW cards.
BTW, I find the exchange rate with the Nationwide is better than HIFX, Moneycorp etc. So it's definitely a better way unless you're transferring a large sum for a house, car or whatever.

[yllig]

We took out 5500 euros over the space of 10 or 12 days a few weeks ago (£300 each a day from Nationwide account from cashpoint). Rate ranged from 1.15 to 1.11.

We have enough to last us now for bills etc until June this year, but if the rate goes back up we will just use our credit cards for most things and save the cash for the rest of the year.

Sterling claws back ground from the euro | This is Money

Another positive article.

[John50]

Promising indeed!
This morning we have 1 GBP= 1.095 EUR

Excellent news !!!! Now, to draw money or not to draw money ?......decisions, decisions.

[6mauledrv]

Promising indeed!
This morning we have 1 GBP= 1.095 EUR