Why is the pound in a state of collapse ?

[yllig]

Interesting article. Unfortunately all the newspapers and news channels forecasting a further drop down to maybe 0% has not stopped the £ sliding. We seem to be the only country that talks itself down. Maybe its best to limit some of the bad news a little. It's only done to sell papers not to keep people informed.

Maybe if its only £ to Euro for a few months people can manage to last out as long as it goes back up to maybe 1.20 ish. (I am trying to hold that thought).

A friend of ours a foreign currency money broker (now retired) has said that it should not really go much lower and as soon as big institutions require more sterling from the money market which they undoubtedly will it will go back up.

We will see how true that is.

[John50]

I take a little comfort from this and trust that interest rates will be left on hold by the BofE:

Interest Rate: Fear For Falling Pound Persuades Bank Of England To Limit Reduction | Business | Sky News

[6mauledrv]

Re. Iceland Stores - are they actually Iceland I wonder as I have seen them referred to as something else 'Overseas Holdings Ltd' or similar. I also see that they are hoping to open two other stores. The prices they charge are outrageous and will surely be reflected in a drop off in sales after the New Year festivities.

Yes, I suppose they'll get the message when sales drop off, which I sincerely hope they will.

Elsewhere in this forum, someone queried the manager who said that prices will be adjusted to 1.35 euros/pound. That's only 10%, where the pound has dropped 30%. Allowing for transport etc. (substantial savings in fuel), you should be dropping prices by 20%.

Come off it Iceland - don't do as the UK gov. Don't treat us like idiots!

[John50]

At 1.027 it's still dropping as you say. I must admit to being very worried indeed. No option but to try to 'weather' it out as no property in the UK any more but who of us could ever have expected this ?

I do note the official 'breadline' in Spain is around 620 to 630 euro per month. So in theory, it must be possible to survive on that but many of us are falling frighteningly close now. I really don't know what the answer is.

BBC NEWS | Business | Pound hits new low against euro

Pound falls to new record low against euro - The Irish Times - Mon, Dec 29, 2008

Re. Iceland Stores - are they actually Iceland I wonder as I have seen them referred to as something else 'Overseas Holdings Ltd' or similar. I also see that they are hoping to open two other stores. The prices they charge are outrageous and will surely be reflected in a drop off in sales after the New Year festivities.

[6mauledrv]

We're at 1.029 this morning - not at the bottom yet.
Mind you, they will soon need to do something about the euro - it's becoming overvalued and will hinder european exports.
Iceland - would it be an idea to contact the freebie press and get them to monitor their prices and do a regular report? Would they play ball or are Iceland's adverts of more importance?
Ditto for Dell Boy, Johstons, etc.

[Chrisdee]

I spoke to the manager the other day and asked about their prices. Apparently all the goods are coming down but he said they couldn't do it all overnight. He said it would be approximately 1.35 to the pound. When I asked why my chicken kievs were marked up for 1 pound but cost 1.50 euros, he said, "Ah, you've picked 2 of the products we haven't reduced yet"
I wouldn't normally be seen dead in Iceland in the UK either, it's always looked like a slobby shop but I do get the occasional thing I want in there here. Yes I live in Spain but I still like my crumpets, Marmite and a nice bit of Cadburys chocolate.

[Warrior]

Went to Iceland in Torre today. There certainly doesnt seem to be any shortgage of money there. Absolutely chocka and another branch opening in La Marina in Jan 09.

Yes it was but only because the muppets don´t seem to realise that Iceland is still using a €1.5 to 1GBP exchange rate - all their party packs that are advertised on TV @ 5GBP are €7.50 over here.
I personally wouldn´t be seen dead in the place.

[John50]

the markets are still open. If you go here, you can see the changes in real time:-

Marketwatch | Foreign Exchange Rates | HiFX plc

Brian

Just 'popped' in. Thanks for this Brian - interesting website. I see that despite Christmas, the relentless fall has still gone on. 1.041 right now.
Judging by HIFX's briefing, the 8th January could be an interesting day:

W/C 22nd December 2008 : Market briefing : HiFX plc: Marketwatch

Enjoy your New Year festivities.

[yllig]

No John. Unfortunately it isnt. It went down to 1.046 or thereabouts last week.

[John50]

Well, the exchange markets are still soldiering on regretably !

£ - 1.051 / Euro - 95.1 pence

is that a new 'low' record ?

[dorsetlad]

the markets are still open. If you go here, you can see the changes in real time:-

Marketwatch | Foreign Exchange Rates | HiFX plc

Brian

[yllig]

Yes strange isn't it. Rates seem going up and down between 1.065 and 1.059 for the last two days. Maybe they are bottoming out.

Another interesting money site aswell as Financial Advice, News, Help & Guides from This is Money UK is :-

Golden prospects for 2009

Went to Iceland in Torre today. There certainly doesnt seem to be any shortgage of money there. Absolutely chocka and another branch opening in La Marina in Jan 09.

[John50]

I have just checked and the rates today are identical. Perhaps the markets have now closed for the holidays ?

[John50]

The fall continues, I much regret to say. Those financial criminals who bet on parity and who are benefitting from this won't be happy until they get their way:

£1 = 1.056 euro
Euro = 94.7 pence

[yllig]

Difficult one that. We got out the max of £300 each per day that we could take from our Nationwide Accounts for a period of 10 days - started at about 1.158 and finished at 1.08. Enough euros to last us until next May/June. A balance between losing the interest and getting a better rate. Interest rate only 3% so not too much of a big decision.

You never know if you're doing the right thing as sterling could go back up to 1.20 as is predicted for March time.