Cyprus-Forum.com

[miltiades]

I'd agree that EUR/GBP has some downside. But shorting the pair is rather risky business at this point...you have to live in the moment with currencies - history is of no consequence.

In any case, if you're paying 20% spreads, you're getting hosed. The clearing agency I use to trade currencies provides 3-5 pip spreads (0.0003-0.0005) depending on market machinations.

Dinos I DO NOT SELL EUROS ONLY BUY.
Therefore I do not bother too much about the "normal" spreads applicable to all transactions. The only currency that I buy is EURO therefore by buying at 8% more than the MMR is reasonable. The last purchase I made was in fact from a middle aged English couple who just came back from Paphos. They were astounded as how expensive Paphos now is and told me at a single shot of scotch or other spirit at their "local: was 5 euros , which is more than twice the cost in a UK pub.
The MMR was at 1.11 , my buying price was 1.20 ( we adjust daily to reflect movements )

On occasions where I have to buy from banks , I only use Amex foreign exchange where you get the best rate of just below the MMR.
What gave the idea that I buy at 20% spreads .
Our current "buy only " rate is 1.22 , I think by mid morning tomorrow it may well rise . I do not feel as if Im getting a bargain at the moment since during the last 6 months we were buying at 1.30 and still were offering a slighly better rate than banks and exchange Bureux , post offices etc.

[miltiades]

so miltiadis wat do u recomend.where can i buy sterling at the best rate possible?thx

Johnny , first you have to know your self why you want to buy sterling.
If its for business , ie you have transactions in the UK where you are required to pay in Stg then your best avenue is , in my opinion , Amex Foreign exchange , first you have to register then you can do it on line and see what rate is available . They are , Amex , BETTER THAN ANY BANK.
If you are buying Stg as an investment then hurry up and do so before Stg rises , as I expect it will by the beginning of Feb , to about 1.22 an increase of about 7% of today's MMR .
If on the other hand you have a Stg account in Cyprus , which you should have converted a long time ago to Euros , and its purely used as a living account then wait again until the rates offered creep up to about 1.20 - 1.22

ps. I will post a link on Amex foreign exchange tomorrow when I'm at work. Its not what appears on google if you do a search . Remember I said you have to register .

[Z4]

What is the chance of a rate of 1.30 Euro's to £1??

[miltiades]

What is the chance of a rate of 1.30 Euro's to £1??

Way back early November we were buying Euros at 1.30 , the mid market rate was about 1.22 .
I think if Stg rises to 1.20 before the end of Jan , lets say by the 26th Jan then we could see it rising further. Remember , this my forecast and I do not wish to influence anyone as forecasts can be wrong as well as right.
I'm confident that Euro will weaken against Stg.
As far is the Cyprus economy is concerned , although I supported Cyprus entry into the Euro , I did feel that a devaluation of the Cy £ ought to have taken place before hand. Cyprus has gone in with a very unrealistic exchange rate at 1.71 and the Cypriot economy will undoubtedly suffer in the coming months as a result of that.
As a tourist destination Cyprus has prized it self far too high .
The weakness of Stg has very serious economic repercussions on the Cyprus economy not only the tourist section but every other section of the economy.
It is unbelievable that an old shack in my village recently sold at auction for 128.000 euros, that's almost 120 thousand stg at today's value . Exorbitant prices are seen through out Cyprus on everything from milk , eggs, cheese , meat and all other food items. As for household essentials , soap , etc , I'm bringing my own on my next trip !!
Did some shopping today at M&S in Croydon , amongst other items I bought 12 assorted bottles of wine , mostly red , some French , Chilean , Australian and S.African , total cost including a 10 % discount offer on 6 or more bottles £61.00 a fiver each , reasonable wine very drinkable and sorry to say a lot better than Cypriot wines costing 10 plus Euros a bottle.

[Z4]

What is the chance of a rate of 1.30 Euro's to £1??

Way back early November we were buying Euros at 1.30 , the mid market rate was about 1.22 .
I think if Stg rises to 1.20 before the end of Jan , lets say by the 26th Jan then we could see it rising further. Remember , this my forecast and I do not wish to influence anyone as forecasts can be wrong as well as right.
I'm confident that Euro will weaken against Stg.
As far is the Cyprus economy is concerned , although I supported Cyprus entry into the Euro , I did feel that a devaluation of the Cy £ ought to have taken place before hand. Cyprus has gone in with a very unrealistic exchange rate at 1.71 and the Cypriot economy will undoubtedly suffer in the coming months as a result of that.
As a tourist destination Cyprus has prized it self far too high .
The weakness of Stg has very serious economic repercussions on the Cyprus economy not only the tourist section but every other section of the economy.
It is unbelievable that an old shack in my village recently sold at auction for 128.000 euros, that's almost 120 thousand stg at today's value . Exorbitant prices are seen through out Cyprus on everything from milk , eggs, cheese , meat and all other food items. As for household essentials , soap , etc , I'm bringing my own on my next trip !!
Did some shopping today at M&S in Croydon , amongst other items I bought 12 assorted bottles of wine , mostly red , some French , Chilean , Australian and S.African , total cost including a 10 % discount offer on 6 or more bottles £61.00 a fiver each , reasonable wine very drinkable and sorry to say a lot better than Cypriot wines costing 10 plus Euros a bottle.

Don't care what anyone says Cyprus is expensive even before the sterling dip. It's been expensive for sometime now but nothing seems to change.

It's really good to see the value of the sterling improve and I have seen on a number of blog sites the sterling will continue to grow (due to the recession also in Europe and with the Euro banks droping their rates). Time will tell though I guess

[miltiades]

The continuing collapse of the German Manufacturing sector , down 10% from last year, will undoubtedly put pressure on the European Central Bank to cut its interest rate from its present level of 2.5% .
The cut in interest rate is expected next week , watch out for the Euro.

[Mr. T]

Following on from Miltiades pointing out that Cyprusis is so expensive and that it prizes itself too highly as a holiday destination I seem to remember reading that Limassol is the 58th most expensive place to live in the world. That is horrific for what is no more than a small town by world standards.

Most British tourists will have no idea how expensive the island now is but when it becomes more commonly known, tourism and everything else that benefits from it will be in for a shock.

I for one will not be visiting again while the situation continues as it does. How can it compare with a holiday advertised recently in Goa....£199 for 7 days... flights and hotel with breakfast close to beach.....nice people and everything is mega cheap.

[Oracle]

Places like Goa aren't cheap without good reason ...

Assuming you do not have a British passport to put you in the line of fire .... you should be immunised against a number of diseases and take preventative medicine/measures against others ....

Here are some of the recommendations from "Goacom"

Food : Do not eat ANY uncooked stuff i.e. salads.
Drink : Avoid drinking unboiled water, lassi, yogurt and yogurt-drinks, milk shakes.
Precautions against: Malaria, Dengue and Japanese Encephalitis : All three conditions are spread by mosquito bites. Leptospirosis. Rabies.
Inoculations : Against Tetanus, Polio, Hepatitis A&B. Vaccination should also be considered against Japanese Encephalitis, Typhoid, Cholera and Meningococcal infections. If a stop-over is planned in Africa, the yellow fever vaccine is recommended.


Let's not forget why Cyprus has become so popular .... it's one of the easiest places with guaranteed sunshine to holiday in ... especially when you have children!

[Z4]

Places like Goa aren't cheap without good reason ...

Assuming you do not have a British passport to put you in the line of fire .... you should be immunised against a number of diseases and take preventative medicine/measures against others ....

Here are some of the recommendations from "Goacom"

Food : Do not eat ANY uncooked stuff i.e. salads.
Drink : Avoid drinking unboiled water, lassi, yogurt and yogurt-drinks, milk shakes.
Precautions against: Malaria, Dengue and Japanese Encephalitis : All three conditions are spread by mosquito bites. Leptospirosis. Rabies.
Inoculations : Against Tetanus, Polio, Hepatitis A&B. Vaccination should also be considered against Japanese Encephalitis, Typhoid, Cholera and Meningococcal infections. If a stop-over is planned in Africa, the yellow fever vaccine is recommended.


Let's not forget why Cyprus has become so popular .... it's one of the easiest places with guaranteed sunshine to holiday in ... especially when you have children!

I can instantly think of places which holidaying is much cheaper:

Bulgaria
Turkey
Croatia
Canaries

I could keep going.

People are starting to look at other resorts, fact!

[miltiades]

The continuing collapse of the German Manufacturing sector , down 10% from last year, will undoubtedly put pressure on the European Central Bank to cut its interest rate from its present level of 2.5% .
The cut in interest rate is expected next week , watch out for the Euro.

Carrying on from last week , Friday , where at the close Stg stood at 1.135 Euros , Stg had an uneventful week dropping to 1.09658 at one stage and finding itself this morning , following the European Central Banks reduction of interest by half of one percent down to 2% , at 1.1225 . I have a feeling by the close today it will rise to last Fridays level of 1.135.

I still expect Stg to rise to 1.20- 1.22 by the first week of February.

WARNING:
PLEASE NOTE FORECASTS / PREDICTIONS CAN BE CORRECT AS WELL AS INCORRECT