Exchange rate euros continue to suffer, if it’s not Greece, its Spain causing the euro increasingly difficult survival issues. Millions of Spanish families and British ex-patriots are left battling for financial stability as demands are made for the country to leave the euro and return to their native Spanish currency – the peseta. Some towns are taking matters into their own hands and ignoring government warnings by returning to their former foreign currency.

Spanish inflation is out of control, unemployment is the lowest it has been since the civil war and millions fear the situation will only worsen. Spanish borrowing recorded in mid March 2012 demonstrated an all time high of nearly £270billion – exchange rate euros are taking a huge hit as a result.

Since 2001 when the euro was first introduced and exchange rate euros were at an all time high, essential household goods like washing products, bread and milk have increased by a staggering 43 per cent – this is simply unsustainable for the Spanish people.  Milk has nearly doubled in price and bread has more than doubled. Potatoes have increased by an unbelievable 115 %, making the average family struggle to produce even the most basic meal.

Dining out has increased by 40% which has had a profound effect on Spain’s most lucrative industry – Tourism. The feeling is that the only way to lure holiday makers back is to re-introduce the peseta, which would offer far more favourable foreign exchange rates than the euro. Villamayor de Santiago, a small Spanish town with over a third of its 10,000 population unemployed, reverted back to using the peseta in February 2012. Four other towns have since adopted the same approach.

Just shy of a quarter of all Spanish are currently out of work, half of which are surprisingly the under 25’s, who are leaving the country in search of an improved lifestyle. If and when the economy picks up, this could leave a shortage of young workers, who will be desperately needed to support a re-emerging economy back to health.

If Spain was to leave the eurozone, it is not know exactly how this will affect exchange rate euros but it would likely have a negative impact that would take some time to recover. Best Exchange Rates UK will be reporting on Spain’s position with regard to euro exchange rates as and when they happen, make sure you look out for future articles.


If the euro starts to collapse what will happen regarding getting the best exchange rate for euros, if everyone bails out of the euro, how will this affect the UK and the rest of the world? There is a whole host of debate surrounding the euro at the moment. Will it survive or will it decline into economic meltdown? Many believe the collapse of the euro could actually help the UK economy, maybe not in the short term but perhaps in the longer term.

The big problem area for the euro is Greece. If the Greek government cannot agree on how to honor its debt liabilities, it is unlikely to secure any more bailouts from its neighboring EU countries. Greece would then be unable to pay back loans secured against its national deficit and the country would go into default, resulting in expulsion from the euro currency. The knock on effect of this could also trigger other weak economies into meltdown, namely Ireland and Portugal, who are in a similar position to Greece. They could then be closely followed by other vulnerable economies like Spain and Italy, who are very much on the border line of economic collapse. Many believe the situation will be like a domino rally, with Greece being the first domino to fall in the potential collapse and disintegration of the euro, making getting the best exchange rate for euros an impossibility and a thing of the past.

So what would all of this mean for the UK and issues like getting the best exchange rate pound for euro. In the short term, Britain will certainly not be as badly effected as other EU countries like France and Germany, who Greece have borrowed very large sums from at very high interest rates – a direct result of the financial risk associated with lending to a weak economy.  Our UK banks are however still linked to Greece, through the sale of insurance and other guarantees on debt. It is highly unlikely that the UK would lend anymore money, however if it lost any money it has tied into the Greek economy, there will be a gaping hole in the UK banking system and therefore less money available for banks to lend. This could lead to another stunt in the UK’s growth and possibly to yet another credit crisis. In part 2, Best Exchange Rates UK reports further on the potential effects of the euro collapse and its effect on best exchange rate for euros.


The Best Exchange Rate for Euros can always be achieved at Best Exchange Rates UK, foreign currency has been at the height of conversation recently as Greece struggles to gather funds to avoid a debt default, but how does this affect us in the UK? This article aims to explain.

The Best Exchange Rate for Euros is always desirable but even more so when we are living in a time of global recession, If Greece was to default on their debt repayment in March the largest affect would be on other countries that are part of the Eurozone, this is all of the 17 countries that have the euro as their currency including Ireland, Germany, France, Italy and Spain just to name a few. The problems for the Eurozone began as a result of countries borrowing and spending too much since the global recession, since May 2010 Greece, Portugal and Ireland have all taken multi-billion pound bailouts as a result of their over spending, however this has not solved the problems in Greece.

If Greece is unable to keep paying what it owes to the rest of Europe, the country will effectively go bankrupt, this could have a huge effect on foreign currency exchange rates, it would also make life even harder for Greek people, who would feel much poorer economically as their money, euros, would not be worth as much. Other Governments in the Eurozone countries like Ireland and Portugal would have to pay more to lend money and might have to raise taxes and cut spending to balance the books.

Luckily for us in the UK we opted out of joining the euro, however some British banks have lent money to Greece and would effectively lose billions if the country went bankrupt, if this happens it could cause another ‘credit crunch’ making it difficult for businesses and individuals to borrow money for loans and mortgages. Another way in which the UK maybe affected is through overseas trade as those businesses in the rest of Europe may have financial difficulties which may have a knock on affect over here in the UK. If you are looking for the best exchange rates for euros visit us at Best Exchange Rates UK.

The import and export market is what fuels foreign money exchange rates and in turn the global economy. The countries of the world have different skills and products available to them and this determines what goods and services they can export to the rest of the world and conversely what they need to import from other countries. At Best Exchange Rates UK we have looked at the biggest export countries in the world, which will help reveal some useful insights into how foreign money exchange rates and the world’s economy go hand in hand.

In first place as the world’s largest exporter, producing and exporting nearly $120 trillion worth of goods annually, is China. Among the main products produced are power generating and electrical equipment and machinery, apparel, iron and steel. The Chinese workforce is well known for being permissive – labour can be bought at a far lower rate than in many other countries, who often find it cheaper to produce and import items from China rather than on home turf – this can be a topic of heated debate.

In second place is Germany. Maybe one of the reasons for Germany’s robust economy is attributable to its huge annual exports, which total $1.12 trillion. Export forms the economic backbone of Germany and accounts for 1/3 of its total economic output. In fact mechanical engineering accounts for 20% of the total world market for mechanical engineering products.

The third largest exporter is the US, with an annual export revenue of $1.05 trillion, capital goods such as engines, boilers and factory components form the bulk of its production output.  The main strategic thrust behind Obama’s masterplan for America’s future is to increase exports. At an annual trade conference he told delegates that America would be significantly upping their game when it comes to the exportation of goods, ninety-five percent of the world’s customers and fastest growing markets are outside of US borders.

In 4th place is Japan, who exports $581 billion worth of goods annually. This East Asian country is well known for its expertise in the production of cars and car parts, computer accessories, industrial machinery and video equipment. Japan may not be the world’s number one exporter but it does have the worlds fastest growing export economy- watch this space!

It is easy to see the importance of import and export activity on a countries economic wellbeing. Foreign money exchange rates affect the feasibility of transacting internationally and buying in goods from other countries. If exchange rates are unfavourable, alternatives will be sought. For all of your foreign currency needs visit us at Best Exchange Rates UK.



Believe it or not, the exchange rate euro is destined for an even more turbulent few weeks ahead of a huge EU summit that will take place between the 18th and the 19th of October, where the fate of Greece will be decided.

French president, Francois Hollande, believes that as well as finding a solution to the on-going Greek debt problem (which will undoubtedly be the main focus of the summit) some progress can also be made with regards to the Spanish economy.  Spain has thus far resisted pursuing a bailout from the European Union, despite their deep and enduring economic woes.  It is likely that traders will pre-emptively avoid trading in the Euro for fear that the decisions that unfold at the summit will have profound malign effects on the value of the currency.  Consequentially the exchange rate euro will improve for those trading in other currencies.

With a definite timescale now in place for developments with regards to the Eurozone crisis, it is appearing more and more likely that Greece will eventually be forced to leave the Eurozone.  Greek Prime Minister Antonis Samaras is under unbelievable pressure to put together a solid austerity package for the country which will be worth €14 billion for the next two years.  With the other members of the European Union growing restless there have been questions raised as to whether the steps that Samaras has proposed that Greece take will have any real efficacy in the short-term, which is where progress is most desperately required.

Samaras has proposed steps such as; the privatisation of state-owned business, a cut in government jobs and an improvement in the methods by which taxes are collected in the country.  Critics fear that the effects of these steps will not be felt soon enough.  Throughout September Greek financial records are to be audited by the European Commission, the European Central Bank and the International Monetary Fund.  The added pressures are presumably unwelcome by a struggling Greek government.  The exchange rate euro will undoubtedly be affected by such measures being carried out by the troika, as the prospects for Greece continue to look increasingly poor.

Good news could come from the summit though with regards to the fate of the Spanish economy.  If Hollande is correct about the summit addressing the Spanish recession, then definite tangible effects will be felt as a consequence of the summit.  Keeping up-to-date and having a close eye on the news over the coming weeks will be essential for those with vested interests in the exchange rate euro.


Exchange rate euros is to be affected significantly in the coming future as the fates of Greece and Spain are cemented during an EU summit that will take place between the 18th and the 19th of October.  Amidst the uncertainty and flux the International Monetary Fund’s deputy managing director Zhu Min has shared his thoughts about the Eurozone crisis at a World Economic Forum meeting in China.

Speaking at the event, Min acknowledged the uncertain fate of the Eurozone by saying that “…the crisis is not over.  We are still in the middle of it and there is some way to go…  But it is moving in the right direction – that is very important.  We should have confidence, and we should have confidence in the euro.”

The rallying speech comes amidst fears that the increasingly-likely ‘Grexit’ will spell the doom for the currency.  It is the opinion of some however, that were Greece to exit the Euro there is definite potential to strengthen the currency – other countries struggling would not default on their payments, and removing the weak link is not the worst thing that could happen to the Euro.  The developments with regards to the fate of Greece are undoubtedly going to be a major influence on the exchange rate euros in coming weeks.

Zhu remarked that the European crisis is a global problem as the effects are wide-reaching and felt by other economies – “we should not underestimate the negative impact from the European crisis to the whole world…  The growth side has a profound effect on the global economy.”

The effects of the European crisis have indeed made themselves felt in other economies.  For example Europe is responsible for purchasing one third of the Asian region’s value added exports.

Zhu’s comments came amidst remarks by a conservative politician in Germany – Mr. Dobrindt – which called for the exit of Greece from the Eurozone.  It is likely that Zhu’s remarks were made with the intent of calming the rising anger in some European countries that are aggrieved by bailouts given to Greece.

Zhu places extra emphasis upon the relationship that the euro shares with other economies when saying that “when the growth in the euro area drops to zero, you will see export growth from this region [the Chinese port city of Tianjin] drop to zero too.”

The exchange rate euros is hopefully set to improve with developments being made in the Eurozone.


Since the introduction of the euro in 1999, the exchange rate for euro has seen a turbulent first thirteen years.  In this article we will take a look back at the history of the euro and pick out some highlights in the history of the euro exchange rate.

Replacing the European Currency Unit (ECU) at midnight on the 1st of January 1999, the Euro was born and many were divided in their opinions as to how the young Euro would grow up – how it would fare, and what troubles it would encounter along the way.  The task of printing and minting all the coins was a herculean task if ever one existed, and experts estimated that it would take a full three years: 7.4 billion notes and 38.2 billion coins were available for consumers and businesses on 1  January 2002, when the currency entered the public domain.

As midnight struck to usher in 2002, there were massive displays of celebration throughout countries in the Eurozone, which included a huge illuminated mock-up of a euro coin in front of the European Central Bank offices in Frankfurt.  The transition played out incredibly smooth despite the forecasts of huge problems by some.  From 2002, the exchange rate for euro improved dramatically after an initial slump that came before.  The rate improved and peaked in 2004, and reached its best rate against the US dollar in 2008.

In the later months of 2008 disaster struck as the global financial crisis began – within nine years of life, the euro had entered its first official recession.  The recession at first did not damage the euro as severely as many though that it would; some believed that the recession could ultimately lead to the breakup of the Eurozone.

As the world economy struggled as a whole, the exchange rate for euro was damaged as various countries fell into financial difficulties.  Spain, Italy and Greece all struggled and put extra strain upon the Eurozone.  The exchange rate for euro has been poorer when compared with the British pound as of late, meaning that many British citizens have been enjoying holidays in European countries, where they are now able to get better value for their money.

Since the introduction of the euro as an accounting currency on the first day of 1999, the Euro exchange rate has (as expected with any currency) been in a perennial state of flux.  After a drop in value relative to other major currencies in the first year of the currency’s life, many Euro-skeptics felt that their opinions were vindicated.  However, theirs was a pre-emptive victory, proved to have been declared too soon when the value of the euro increased year upon year, eventually peaking on July 15th, 2008.  On this date, the euro exchange rate peaked against the USD at an impressive $1.5990.  For those that supported the Euro, their victory was to be short-lived as the world would soon see the dawn of the Global Financial Crisis – the most severe since the Great Depression of the 1930’s – which caused significant dips in stock markets all around the world.

As other currencies now slowly begin to recover from the economic slump they previously found themselves in, increasing doubt has been cast over the future of the euro as a currency.  With Greece’s Euro fate still uncertain, and many other problems still plaguing the currency, other currencies are now capable of benefiting from a better euro exchange rate.  Holiday makers from Britain that choose to visit countries in Europe for their holidays will now be able to get increasingly profitable exchange rates.  Approximately 5 per cent of the 36 million holidays that the British population take each year are to Greece and its surrounding islands.  Were Greece to leave the Euro currency, the transition period in which the currency is replaced would see the pound get a better exchange rate against the new currency.  As problems persist with the Euro, it would be safe to assume that the number of people going on holiday to European countries would increase.

It is of course worth considering that when a new currency is created, it is done so with the intention of lasting for centuries, and judging the future of the Euro based upon its very short history would be incredibly difficult to do.

Perhaps the recent decision of the Bulgarian government to suspend their plans to join the euro zone is indicative of further woes that may be awaiting the euro.  Europe’s poorest country deciding to opt out of the currency could certainly signal further troubles ahead for the euro exchange rate.



Exchange rate euros have been in a state of decline for some time. The euro was always intended to make the European market more accessible and proficient. One of the main ideologies was that barriers to trade would be reduced and the euro zone would become more fluid and accessible. If the euro fails, manufacturers outside of the EU would profit the most. This is mainly attributable to the increased costs that European exporters would be exposed to if the euro was to fail, this would force export prices up and make competitors from China and US, a more attractive prospect.

The European Union eliminates other obstructions to trade and commerce, it creates free movement of goods, employment and provides a platform of common trading rules and regulations, all of which increase the efficiency of the European economy and movement of goods and capital. The death of the euro would eliminate all of the benefits it has created for businesses, particularly exporters. There would be no European foreign currency or exchange rate euros, the individual nation states would revert back to their national currencies.
Essentially the euro was created to provide its member states with a competitive edge, the amalgamation into a single monetary currency was intended and succeeded in enhancing the European economy. It is very apparent that the creation of the EU and the euro is of huge benefit to the businesses of its member states. For these reasons it will not be disbanded without a fight.

If it were to collapse then there would be immediate benefits to competitors in the US and China who would become more competitive, but conversely there would be huge cost to the overall world Gross Domestic Product. Many are actually rooting for the collapse of the euro. Those in America  in particular, who view the euro as a threat to the US dollar as a world dominating currency. The dollar is and has always been the worlds reserve and dominant currency purely because of its scale and size. However the euro is possiblyAmerica’s biggest threat and competitor. If the euro can sort out its debt crisis, there is no reason why it can’t go on to flourish and individuals and businesses can start to experience excellent exchange rate euros again, a position once held when the Euro was strong. On recovery of the euro debt crisis,Americacan expect to have a serious contender for world currency domination.

The dollar can take huge losses before it affects its value.  The euro represents an even bigger reserve of stability, assuming they manage to get their debts straightened out.  Internal dissension makes the larger currency less stable.  SoAmericabenefits from euro dissolution by removing a currency competitor.

At Best Exchange Rates UK we endeavour to bring you the best foreign currency exchange rates on the market.

Exchange money on the Forex market is like no other in the world. At Best Exchange Rates UK, we offer you a guide to Forex trading which is essentially the largest financial trading market in the world.  Forex trading is primarily undertaken by large corporations and financial institutions. But since the rise of the internet, retailers and individuals have become more and more interested.

So exactly what makes Forex so different from other markets. Stocks, futures and options exchange money are regulated and controlled by a central governing body. This is not the case on the Forex market, where there are no guarantees on trades and no overarching body or panel to judge disputes. Trading between members is managed through credit arrangements and agreements; effectively trading is undertaken on nothing much more than a handshake.

There is no structure on the Forex market like there is on exchanges that take place on say for instance the New York Stock Exchange. Remarkably this works well because traders on the FX market self regulate and co-operate. Reputable retailers that deal on the Forex in the US become members of the National Futures Association (NFA), which binds them to certain agreements and ‘laws’ of that association in the case of inevitable disputes.  It is the responsibility of the trader to ensure they therefore only trade with others who are NFA members.
So what other major differences exist between the Forex and other key worldwide markets; unlike stocks there are absolutely no limits to the size of your transaction, if you had the capital available, as some do, you could sell or buy $200 billion worth of a currency. There is no such thing as insider trading, so if you discovered through well connected sources that the dollar was suddenly going to take a sharp rise and you decided to put all of your available assets into the dollar and then quickly sell it all – you would not be prosecuted. In fact it is common place for economic data to be leaked before its official release.

The exchange money market may sound a bit corrupt and free from control on the Forex but it must be remembered that it is the worlds most fluid and liquid market, trades round the clock and rarely has gaps in price. Its scope and size across the world, makes the Forex currency market the most readily available and accessible market across the globe. Visit Best Exchange Rates UK for more information.