Sterling forecast to fall to parity against the dollar - BBC

[Moorlandman]

Originally Posted by Bozza

$1.03 on offer at Travelex at Heathrow this morning.

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Price worth paying for our freedom from the EU😂😀

[scojos]

Originally Posted by Bozza

$1.03 on offer at Travelex at Heathrow this morning.

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Holy.cow...

[GezzasGem]

Will settle for the $1.25 I got from Revolut - especially as last visit I got $1.2 😆

[Labboy]

My golf at Disney just got a bit more expensive but what can I do ? It is Golf after all.

[Nimbus]

Originally Posted by salmim

I was just trying to say that there seems to be a patronising "we know best" on the radio phone ins i Iisten to ...from remainers.

It's a shame it has become so devisive and (just saying) from what I listen and read it's very much coming from the remain side... on phone ins!

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I think I must listen to different phone-ins and read different material to you. I would've said it was the leavers who think they know best.

I have a feeling though that it's a case of personal bias. We think the other side is wrong and thus we view anything the other side says as negative and as if they are patronising us. I agree though, it's a shame it has become so derisive.

Originally Posted by salmim

The dollar rate discussed on here isn't the big problem it sometimes claims to be for tourists going for a couple of weeks maybe some small cutbacks per day.

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You're right that it's not a big problem (i.e. it's not the end of the world). However, it does mean maybe some small cutbacks (i.e. we are worse off).

It's the fact that they'll have to make some small cutbacks, and are thus worse off, that people are complaining about. If the dollar rate was better then they wouldn't have to make any cutbacks. And, as already established, the primary reason why the rate is where it is now is because of the referendum result and the ongoing Brexit negotiations. QED DIBBers complaining about Brexit.

(BTW, the poor exchange rate doesn't just affect spending money. It also affects the price of hotels, tickets, car hire, etc bought in pounds. A $100-a-night hotel is going to cost £80-a-night at a $1.25 rate rather than £67-a-night if the rate was $1.50. This means that a family holiday that might have cost £5K in total could now cost £6K purely due to the poor exchange rate. That's a £1K cutback).

[tspill]

Originally Posted by Nimbus

I think I must listen to different phone-ins and read different material to you. I would've said it was the leavers who think they know best.

I have a feeling though that it's a case of personal bias. We think the other side is wrong and thus we view anything the other side says as negative and as if they are patronising us. I agree though, it's a shame it has become so derisive.

You're right that it's not a big problem (i.e. it's not the end of the world). However, it does mean maybe some small cutbacks (i.e. we are worse off).

It's the fact that they'll have to make some small cutbacks, and are thus worse off, that people are complaining about. If the dollar rate was better then they wouldn't have to make any cutbacks. And, as already established, the primary reason why the rate is where it is now is because of the referendum result and the ongoing Brexit negotiations. QED DIBBers complaining about Brexit.

(BTW, the poor exchange rate doesn't just affect spending money. It also affects the price of hotels, tickets, car hire, etc bought in pounds. A $100-a-night hotel is going to cost £80-a-night at a $1.25 rate rather than £67-a-night if the rate was $1.50. This means that a family holiday that might have cost £5K in total could now cost £6K purely due to the poor exchange rate. That's a £1K cutback).

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I think everyone thinks the media is backing the other side regardless of what side you are on.

We aren't necessarily worse off with the pound weakening. Yes it might make one specific part (holidays) more expensive, but a weaker pound makes exports much more attractive and therefore gives a general boost to the economy. It is difficult to trace directly, but this ultimately leads to us being better off at home. So swings and roundabouts.

[IndianaMac]

Poor exchange rate doesn't just impact us on our travels. Most international commodities are traded in USD. Weak pound, we pay more... it's that simple. As a country, we are poorer now than we were, that's an undisputable fact.

Filling up your car costing more? Petrol's high for a multitude of reasons, but one of them is the Pound/Dollar exchange rate right now.

[oeamon]

i agree it depends a lot in your personal perception. I always watch the bbc news thinking there are so pro leave and then I come on forums like this and people are complaining they are pro remain... not sure it will continue with Boris now in place but my perception was probably biased because I felt that Farage got a disproportionate amount of airtime considering his actual position

[Warkman58]

Originally Posted by IndianaMac

Poor exchange rate doesn't just impact us on our travels. Most international commodities are traded in USD. Weak pound, we pay more... it's that simple. As a country, we are poorer now than we were, that's an undisputable fact.

Filling up your car costing more? Petrol's high for a multitude of reasons, but one of them is the Pound/Dollar exchange rate right now.

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In that case we are much worse off than when the rare was £1=$2
So, we are a poorer country since then?
Nope, I don’t see that at all, higher employment, more people buying new goods, the economy us in a great state, even better than when at $2

Much better conditions than when you could only take out £50 pp from the country as the exchequer was on its knees.

What I’m saying is where you set your base line effects how you look at the economy and the £ vs $ rate

[Nimbus]

Originally Posted by tspill

I think everyone thinks the media is backing the other side regardless of what side you are on.

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Yes, you are probably right.

It reminds me of the study done on people's views of the BBC and whether they think it's politically biased. The result was people had a tendency to think it was biased opposite to their own political leanings.

Originally Posted by tspill

We aren't necessarily worse off with the pound weakening. Yes it might make one specific part (holidays) more expensive, but a weaker pound makes exports much more attractive and therefore gives a general boost to the economy. It is difficult to trace directly, but this ultimately leads to us being better off at home. So swings and roundabouts.

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Unfortunately, as a country, we import far more than we export. We are not a manufacturing-driven, export-based economy. We haven't seen a boom in exports.

It's generally good news for UK businesses that do export (although roughly 50% of UK export businesses import raw materials so the loss offsets the gain). It is also good news for UK businesses who face competition from foreign businesses and good news for the UK tourism industry (I would assume). However, for the UK overall it is bad news.

Of course, all this assumes that the way we trade generally remains the same as we it does now and there are no additional trade barriers or tariffs in the future. But that's a whole different rabbit hole.