Ken Clarke does an about-turn on the euro

[The Lone Gunman]

Beccs, and others.

Exchanging monies when travelling is trivial and those of us who live and work abroad have set ourselves up to deal with exchange rates.
My personal solution is to use a bank that has offshore and onshore branches, gives me a euro and stirling account and gives free transfer of funds between branches.
I dont get charged for currency conversion (I get the daily rate) and sometimes I win. The exchange rates were favourable a couple of weeks back so I swapped, this week I swapped back. 200 quid for no effort.

The real problem.
The biggest problem with the Euro is the disparity between the economies of the member countries.
Without them being aligned in all financial matters you have the potential for one member to criple the currency of all of them.
Just imagine if the German economy goes down the pan. It will take the euro with it which will destroy other member states economies too.
If one of the smaller partners goes down the bigger ones will have to dig deep to support them thus costing tax payers a fortune.

It is a complex issue, and the above is just a precis. Try and follow the argument and develope it as I dont have time to do the detailed stuff.

[BlasterBates]

Having the pound is costly if you work in one country and live in another.

...and when you do this yes it is a headache, firstly you do lose quite a bit on exchange even if you doing the "spot", that's because investment banks operate a spread.

secondly you're subject to exchange rate going up and down, the last couple of years haven't been too bad, but I've had savings drop by 20% and believe me that is painful.

On the whole operating with different currencies is an absolute pain in the f**ing a*se.

[BoredBloke]

So your prime reason for the UK adopting the Euro still comes down to Brits going overseas not having to change their money. Hardly a good argument for changing a nations currancy. As pointed out here, there are ways of getting a good exchange rate and avoiding the charges.

But to gain this 'benefit' you give up the power for the BoE to set their exchage rate and adopt the one exchage rate fits all approach of Europe. You will also incur the costs of making the change over, and no doubt the price rises which shops will put in on the back of the introduction of the Euro. But at least you will know that you are not getting ripped off for your pint of lager on your 2 weeks in Spain.

"Having the pound is costly if you work in one country and live in another."

But that is a tiny percentage of the UK.

[The Lone Gunman]

Blaster: I am speaking from experience. I work on the mainland and get paid in Euros. I live in the UK.

For me personally the UK being in the Euro would be a good thing as my rate wouldnt vary and I woul dnot need to be juggling 4 bank accounts . Some weeks I earn 39 quid some weeks I earn 41 quid per hour. It is a pain to deal with, but I do deal with it. My bank does not do a "we buy at x we sell at y" policy. I get the daily exchange rate.
Much as the Euro would be better for me, I do not think it is a good idea unless all members are aligned as economies on production, tax and benefits etc etc.

[BlasterBates]

The small fluctuations can easily be dealt with, what really "sucks" is the sudden change in the exchange rate.

This can really impact on things like trying to move from one country to another where suddenly your assets have dropped by a huge amount.

At the moment I'm all Euros, because I think the pound is ready for a hefty devaluation. Switzerland pegs its currency to the Euro (so effectively its in the Euro, they just haven't told the Swiss population) so I don't have quite the same problem in Switzerland.

But does it really need to be like that ?

I mean Ireland, which is more like the UK doesn't have a problem with the Euro.

[BoredBloke]

The only work I have done overseas was in the US. Can we join the dollar? Exchage rate fluctuations cost me a couple of thousand last year.

[BoredBloke]

"I mean Ireland, which is more like the UK doesn't have a problem with the Euro."

My folks live over there and said that everybody complained because the prices went up when it was being introduced.

[Lucifer Box]

that's pretty good - don't think many banks offer that or am I wrong?

Correct, Becs, only Nationwide (in the UK, can't speak about anywhere else). Never go abroad without one.

In contrast, the worst on the market (forget who, might be Halifax) charges a whopping £1.50 plus 2.5% at the tourist rate per transaction!!

[BlasterBates]

Can we join the dollar? Exchage rate fluctuations cost me a couple of thousand last year

..aha so in principle you think its a good thing to be a larger currency area. Well I agree with you Tony, except joining the Dollar is not on offer.

[BoredBloke]

"..aha so in principle you think its a good thing to be a larger currency area. Well I agree with you Tony, except joining the Dollar is not on offer."

I didn't say it was a good or a bad thing. How much would it cost to join the Euro, how would it effect our economy and is this risk worth taking given that the only benefit people seem to be coming up with is that you don't have to pay to change your cash. For a small number of people these benefits would no doubt be significant. For most though the benefits would not.