Euro to peseta exchange rate ??

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Jool
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Euro to peseta exchange rate ??

Postby Jool » Sun Nov 27, 2011 5:12 pm

Interested to hear thoughts of others on this

If, as more and more people are speculating, Spain asks for a bailout and the line is drawn with the euro collapsing, then will Spain revert to the peseta and revive it as a currency or will it go to a grade 2 euro?

If the peseta is revived will it be at the fixed exchange rate of 166 pesetas to the euro as it was when we entered the euro? Or can they change it (I understood it was a fixed rate ad infinitum)

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Re: Euro to peseta exchange rate ??

Postby bob » Sun Nov 27, 2011 5:39 pm

Ridiculous.

Jool
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Re: Euro to peseta exchange rate ??

Postby Jool » Sun Nov 27, 2011 5:52 pm

Thank you Bob for your reply which reveals a lot about you

http://www.bloomberg.com/video/81562758/

http://www.bloomberg.com/video/81448594/

From Typically spanish.com
The Italian President, Mario Monti, has admitted in his cabinet meeting today that Merkel and Sarkozy told him that if Italy failed, it would provoke ‘the end of the Euro’. He confirmed his commitment to ‘reach the objectives established by the European institutions’.
His job will not be made any easier by the news today that Italy has had to pay almost double to fund its debt in the first auction for the new Government. The treasury managed to place 10 billion € at six months and two year but the 10 year bond price has risen to 7.5%. Earlier rises on European stock markets were reversed on the news.

The CEOE Employers organisation in Spain has said that ‘some think themselves very clever’ in the Eurozone, and that is false to say that Spain is insolvent. Chairman Joan Rosell considers that although Germany ‘is the one to pull the most’, there is a great deal of debt across Europe.

Read more: http://www.typicallyspanish.com/news/pu ... z1evUogJUd

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Re: Euro to peseta exchange rate ??

Postby annfoto » Sun Nov 27, 2011 6:47 pm

If the peseta is revived will it be at the fixed exchange rate of 166 pesetas to the euro as it was when we entered the euro? Or can they change it (I understood it was a fixed rate ad infinitum)
It was only a fixed rate as long as Spain was in the eurozone.
I don't think Spain will leave the euro but if they did whatever new currency was adopted it would not be fixed against the euro - there would be no point, returning to the peseta would be for the sole purpose of devaluing the currency. Within a few milliseconds of trading you will probably need about 300 pesetas to buy one euro, any debt you have will still be in euros, any euros you had in Spain will now be in devaluing pesetas.
The whole mess is too horrible to contemplate which is why I think we will see a United States of Europe rather than the euro collapsing. Britain will not be part of the United States of Europe.
I am hoping that as a UK citizen who has been resident here for over 9 years I will not need a visa to remain in Spain when the UK leaves the EU.
Ann

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Re: Euro to peseta exchange rate ??

Postby olive » Sun Nov 27, 2011 7:59 pm

For what it is worth I think that Greece will leave the euro with catastrophic results for the Greeks. The exchange rate will be fixed at x drachmas to the euro and the next day will be half that. Good for holiday makers to Greece and Greek exporters. That I think won't happen till Spring 2012.

That will be the wakeup call for the rest of the eurozone. They will then implement eurobonds and that may work- who knows.

Britain leave the EU. Can't see that unless UKIp maike terrific inroads or the government listen to the electorate. They will (if they have any sense) take the opportunity to distance themselves from having Brussels take even more control of economies. Britain needs any market it can get.

On a lighter note. I read that any new country created out of an existing EU country would be expected to adopt the Euro. That would be a fitting end for the (nonsense in my view) bid for independence by Scotland. In the small print the new country can apply for an exemption and keep its existing currency.

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Re: Euro to peseta exchange rate ??

Postby Mowser » Sun Nov 27, 2011 8:17 pm

For what it is worth I think that Greece will leave the euro with catastrophic results for the Greeks.
If Greece leaves the Euro it will be catastrophic for the entire Eurozone.
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Re: Euro to peseta exchange rate ??

Postby katy » Sun Nov 27, 2011 8:50 pm

Mowser wrote:
For what it is worth I think that Greece will leave the euro with catastrophic results for the Greeks.
If Greece leaves the Euro it will be catastrophic for the entire Eurozone.
Why would that be so?

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Re: Euro to peseta exchange rate ??

Postby El Cid » Sun Nov 27, 2011 9:14 pm

Jool wrote:
If the peseta is revived will it be at the fixed exchange rate of 166 pesetas to the euro as it was when we entered the euro? Or can they change it (I understood it was a fixed rate ad infinitum)

No, the agreed rate of 166 is history.

The "new peseta" would float against all other currencies.

I have read that it would be at least 20% less than the current Euro rates. Personally I think it would be even lower.

For Expats on a GPB based income it would mean an effectively mean increase in income but a reduction in the GBP based value of their Spanish assets.

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Re: Euro to peseta exchange rate ??

Postby baroness » Sun Nov 27, 2011 9:36 pm

You all seem to ignore that the GBP has already been devalued by 20% to the Euro, and the Brits at home have not seen a catastrophe, that may be to come but it will be for another reason.
Harold Wilson devalued the Pound "but it will not affect the Pound in your pocket".
Devaluation in Spain may stop the sales of German cars, but overall I do not think the Spanish people would notice it (just like us in the seventies) accept they might have more employment

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Re: Euro to peseta exchange rate ??

Postby markwilding » Sun Nov 27, 2011 9:38 pm

The problem with the sceptics is they only look at the negative part of the euro. There is a real benefit for businesses to be able budget the costs of imports without the big fluctuations in the exchange rate..

This is one of the non story themes.It aint gonna happen.
The level of a new pesata against the euro wouldn't make much difference to the Brits anyway, as we aren't in the euro and there's little logic of Spain leaving the euro and fixing the rate at 1.66. It might as well stay in.
On top of that it's almost impossible to fix a currency rate against another,

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Re: Euro to peseta exchange rate ??

Postby frank » Sun Nov 27, 2011 10:04 pm

As the Italian government struggled to borrow and Spain considered seeking an international bail-out, British ministers privately warned that the break-up of the euro, once almost unthinkable, is now increasingly plausible.
Diplomats are preparing to help Britons abroad through a banking collapse and even riots arising from the debt crisis.
The Treasury confirmed earlier this month that contingency planning for a collapse is now under way.

http://www.telegraph.co.uk/news/politic ... warns.html
Regards, Frank

No soy residente, simplemente un turista, ¿qué sé yo?

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Re: Euro to peseta exchange rate ??

Postby Beachcomber » Sun Nov 27, 2011 11:47 pm

I heard at least one person on Radio 4 today expressing some doubt as to whether the euro would last until Christmas?

If all countries reverted to their national currencies what would there be to stop people taking their hoarded cache of euros and exchanging it for the strongest currency, probably the German mark, then buying back their own currency at a much higher exchange rate resulting in a massive loss of what wealth the countries with the weaker currencies had left.

I understand that it is possible to identify in which country any particular euro note was issued so maybe those bearing a particular country's code would have to be exchanged for that country's national currency so everyone will be looking for notes with the Spanish, Greek, Italian, Portuguese and Irish identification and trying to offload them.

Anyway, it doesn't really matter because the world is going to come to an end on 21st December 2012 so all the problems of its problems will be resolved in one fell swoop.
Let's go Brandon!

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Re: Euro to peseta exchange rate ??

Postby bob » Mon Nov 28, 2011 8:46 am

Jool,

I don’t hear or see anything in your links which refer to or define a “grade 2 euro”, nor Spain reverting to a Peseta at any rate at all.

(If you understood the rate was fixed “ad infinitum” at 166.386 then you mis-understood the transition to the Euro to begin with)

So, a discussion about 2 items which are non-existent is ridiculous.

And yes, that makes the little yellow Euro/Peseta price tags in the local Spanish markets just as ridiculous.

Final note: will someone please advise the people at typicallyspanish.com that Mario Monti is the Prime Minister of Italy, not the President.

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Re: Euro to peseta exchange rate ??

Postby knowal » Mon Nov 28, 2011 10:02 am

If the bank want to give me my €uros as Pesetas, I will expect 166.386 for every €uro in there. However, it will be academic, as prices are rising and the moment that the conversion decision is taken by the government, those Pesetas will have a value based on the market.
The market as it is now, will force the Peseta to find it's own level against the US $, £ sterling, and the €uro if there are any countries left using it.
It will be chaos for a while, if it happens.

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Re: Euro to peseta exchange rate ??

Postby MarkF » Mon Nov 28, 2011 10:14 am

But Spains debts would still be in Euro's, it's assets valued in "new" Pesetas! :shock: I am with El CId and I too think it would be more than 20% lower, a lot lower in fact.

I don't expect it to happen.

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Re: Euro to peseta exchange rate ??

Postby fincalospinos » Mon Nov 28, 2011 10:28 am

Irrespective of which camp you believe in, the survival or collapse of the Euro, why does everyone presume that Spain would, or should, return to the Peseta ( or Greece to the Drachma) ?

Why could we not have completely new currency, such as a Spanish Dollar,Spanish Pound, or Spanish Euro ? It may not have any more actual value than the Peseta, but because the Peseta was always classed as a second class currency, the perceived value of a different named currency may be greater, giving a fresh start from a dire situation.
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Re: Euro to peseta exchange rate ??

Postby MarkF » Mon Nov 28, 2011 11:24 am

I agree,a new currency might well not have any "2nd class" connotations that would be attached to the "new" Peseta. But with Spains debts in Euros, whatever the new currency is called and however it would be percieved, it'd still be worth diddly squat.

It'd be a total disaster for everybody in Spain (apart from the retired with overseas pensions/income who's buying power would suddenly increase) that is why I can't see it happening.

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Re: Euro to peseta exchange rate ??

Postby Ama » Mon Nov 28, 2011 11:39 am

There was an article yesterday in El País, suggesting it could be called Euro Español, calculating an approx 40% devaluation, the only problem is how could it be changed, as most people would withdraw their euros before from deposits, and the banks don't have the money....

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Re: Euro to peseta exchange rate ??

Postby Mowser » Mon Nov 28, 2011 12:05 pm

The [EU] treaties do include a sort of emergency clause that allows the European Commission, the EU’s executive arm, to make proposals to deal with extraordinary events that are a threat to the single currency. So it could probably use this as a basis to draft a Greek exit, if necessary. As with all EU matters, the process would not be immediate. The other 26 member states would have to unanimously approve, as well as the European Parliament.

Thanks to a clause in the Lisbon treaty, which came into force in 2009, Greece could take a more radical approach and opt to leave the EU altogether. (This clause was added at the behest of the UK, to prove to its eurosceptic voters that the bloc was not a straitjacket that could never be removed). In this case, Greece would require only majority approval from other member states.
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Re: Euro to peseta exchange rate ??

Postby anyroads » Wed Nov 30, 2011 1:13 am

"I understand that it is possible to identify in which country any particular euro note was issued so maybe those bearing a particular country's code would have to be exchanged for that country's national currency so everyone will be looking for notes with the Spanish, Greek, Italian, Portuguese and Irish identification and trying to offload them".

I know the codes ( comes with the ex banker territory ).........

For the record. Spain is "V"......shhhhhhhh

anyroads


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