Is the UK closer to adopting the euro?
Awhile back, the BBC reported that the UK was closer to adopting the euro and today, the pound hit a historic market low against the euro … the BBC is reporting that £1 will purchase 88 euro cents. In addition, the pound to dollar rate is still hovering at about £1 = $1.50.
So, what does that mean? Well, it means that an Apple iMac which costs close to $2000 is actually cheaper to buy in the UK. The equivalent computer, including the 15% VAT, will only cost you about £1200 … which means that when converted, it only costs $1800.
Beyond the official exchange rate, the tourist exhange rate for the pound and the euro is essentially even. According to the one o’clock news on BBC, many of the tourist exchanges are already charging a nearly equivalent rate. It was reported that £500 would buy you only about 550 euros. In addition, it is expected that by the end of the year, the official exchange rate may be equivalent.
What comes next … only time will tell … but you can’t say that it is not an interesting time to be alive!
On a personal note, if the UK moves to the euro, it would make European travel much easier … and for so many people, that alone would be enough to make the switch plausible, if the exchange becomes equivalent.
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Tags: BBC
