The One Pound Euro Coming Soon At An Exchange Booth Near You.. What Are You Doing With Your Money?
Over at the airport this weekend, I almost ran into the wall when I saw the exchange rate of the pound vs. euro at 1.06. Isn't that like... almost 1 to 1?
Looking into the matter further, it appears that the possibility of a one pound euro is getting more likely by the day. Our Sterling is losing value against the euro as recession deepens here in the UK. The pound's down 20% since this time last year, and a further 5% in just this past week, opening at 82.7p per euro and finishing at 86.7p.
Sterling also traded at $2 against the U.S. dollar in the summer, but fell $0.55 to $1.4635, a 30% drop. Experts say that because of this declining value of Sterling, a one pound euro may indeed emerge, but some analysts believe that the economy would have to be much worse and the value of Sterling would have to fall more for such development to be likely to take place.
What are your thoughts? Is there anything you are doing now to hedge your cash, like putting it in an offshore account in the Cayman Islands or laundering it through your local Western Union long distance call shop? Moving your money into a multiple exchange account? Spending it all on Christmas gifts? Or just stashing it under the bed? We'd love to know.