Euro Sterling Exchange Rate Update

Euro Sterling Exchange Rate Update : June 27th  2016 12.33 pm

1 GBP = 1.199885 EUR           1 EUR = 0.833413 GBP

The decision of the UK  to leave the EU has , as expected , had a big effect on the Euro Sterling Exchange rate.   On  Friday , as soon as the result became obvious ,  there was an initial fall to €1.21   – but it recovered before the end of the day  to just under €1.25 .
Today (Monday) has seen a further fall in the value of Sterling –  By lunchtime the Pound  had fallen to  just below €1.20 – the lowest value for since early 2014.

The pound had risen against the Euro just prior to the referendum –  rising from 1.26 to just under €1.30 between 13th and 20th June  . This was mainly due to opinion poll results showing a lead for the Remain vote. Back on May 24th the Pound was worth €1.316 .

The Euro to Sterling exchange rate has been very volatile during the run up to the June referendum and it will probably remain that way for several weeks or months afterwards.
In March  , analysts at Goldman Sachs warned that Sterling could fall by up to 20% against the Euro if Britain voted to leave the EU. Other forecasters  suggested  a sudden fall in Sterling followed by a substantial longer term fall in the  value of the Euro against the Pound.

UniCredit, headquartered in Milan, have suggested that the effects of Brexit  could send EUR-GBP to 0.90  ( this equates to a pound to euro exchange rate at 1.11.)

euro sterling exchange rate

With so much  uncertainty in the currency markets at the moment –  it could get very stressful for people or businesses planning large Euro / Sterling exchanges in the next few months.   Using a Currency Broker can remove some of the uncertainty by allowing you to fix an exchange rate as much as 12 months in advance of your transfer.  For good deals on large amounts of currency exchange –  for personal money or  for businesses – see our page on how to get the Best Exchange Rates

You might also be interested in this information about Transferring  Money from Ireland to a UK Bank

If you are just looking to buy some Pounds ,Dollars  or other currencies for a holiday  – take a look at our page about the best place to buy currency in Ireland

 

UK Leaving the EU – Possible effects on Ireland

Voters in the UK have decided that they want to leave the EU.

This seems to have come as a bit of a surprise to almost everyone.

How could this affect Ireland Financially ?

As part of Budget 2017 – the government published their Summer Economic Statement just before the UK vote on the EU .
In the statement there was a small section on the possible effects on Ireland of the UK leaving the EU .  It said that recent reports from the UK  Treasury  and  The National Institute Economic Review suggested that a vote to leave the EU could reduce UK GDP by between 2.3 and 6.0 per cent.

It also stated that it is estimated that every  1 per cent reduction in UK GDP would reduce Irish GDP by approximately 0.2 per cent over two years. This implies a possible fall in Irish GDP  in the range of 0.5 to 1.2 per cent .

A fall in UK GDP would also be expected to impact on our other EU trading partners. Estimates  suggest that if euro area GDP were to also fall by 1 per cent,  Irish GDP would fall by a further 0.4 per cent.

Both UK reports also predicted  a fall in the value of sterling in the event of a vote to leave the EU.  A  5 per cent sterling depreciation could cause a loss in Irish GDP of 1 per cent after 2 years.

If the UK had remained in the EU  – Irish GDP was projected to increase by 5% in 2016. The effect of a British exit from the EU could lower this to 3 or 4% .

Irish exporters will be the first to suffer if , as expected , the pound weakens significantly against the euro. This will make their euro-priced goods more expensive for UK importers .  Foreign Minister Charlie Flanagan said this week that if this happens , Ireland will have to consider taking steps to assist firms exporting into Britain.

There is , on the other hand , possible good news for Ireland as a result of the UK vote. Companies who have their EU bases in the UK may end up moving to other EU countries  , possibly to Ireland.   Morgan Stanley have already said that they might move  UK staff to Dublin or Amsterdam because of Brexit.  Before the vote ,  Switzerland’s Credit Suisse announced they would be moving a range of operations including a trading floor from London to Dublin.
Other banks that might move from the UK to Ireland are non-EU institutions with large London offices, including US banks such as JPMorgan and Goldman Sachs.
Deutsche Bank employees 12,000 employees in London, and it said it was looking to relocate a good portion to elsewhere in Europe.

This could be a good time to get a good price on Sterling – see our page about getting the Best Exchange Rates here

 

Another Cashback Mortgage Offer from EBS

Many of the mortgage lenders in Ireland have been offering incentives such as cashback to try and attract customers.
Bank of Ireland have been giving 2% cashback  with no upper limit for a while now – and other lenders are offering fixed amounts of €2000 or €1500 .

This week EBS announced their cashback offer – which matches the BOI offer of 2%.
So – for every €100,000 you borrow you get  €1000 back.

This offer is available to all new EBS customers , home buyers and mortgage switchers.
Interestingly  – they don’t have any conditions about staying with them for a certain period of time . Bank of Ireland say they will claim back the cash payment if you move your mortgage within 5 years – but EBS don’t have a similar clawback condition.
So – in theory – you could move your €400,000 mortgage to EBS , get €8000 cashback which would leave you with about €7000 after legal fees. Then you could move your mortgage again to Bank of Ireland and get another €8000 cashback !

Free Money !

 

New Bin Charges July 2016

The new Bin Charges that were due to kick in from July 1st are  now going to be suspended for a year.  The move to a nationwide  pay-by-weight scheme for bins was not very popular because of concerns of some that it would increase charges. Now – after a few days of pressure – the government have  given in and agreed with the  bin companies to suspend the introduction of pay by weight charging for 12 months

Note :  Whilst the current charging system will remain in place, for 12 months – householders will have the option to switch to the pay-by-weight system during that period.

The new legislation on bin charges was due to come into force on July 1st  – and it was supposed to result in  people paying  less if they produce less  waste .  At least 20% of households in Ireland already have bin charges based on pay-per-weight.

The compulsory charging by weight method  would have  hopefully  encouraged more recycling and reduced the amount of waste going into landfill.  Some people would end up paying less under the new charges – especially if they recycle more and put less stuff in the black bin.  But it seems that many others would pay more – mainly those who already recycle a lot and have a small amount of waste. These people will be hit by increased fixed annual service charges.

Possibly faced with a potential loss of income if people disposed of less waste – it appears that some  bin companies  adjusted their charging methods to try and maintain income levels. Many have increased their service charges drastically.

One benefit of the proposed new charging system is that people can put their bins out as often as they want and they will not be charged any more (in most cases) . So no longer the need to put up with  bins full of a month’s worth of stinking rubbish outside your door .

Most bin companies are not charging anything for the  recycling bins – so some people could reduce their overall bin charges by increasing the amount they recycle – thus reducing the weight in the standard waste bin (black).

Minimum by weight charges were going to be set at the following rates :
11c/kg for(standard non recyclable) – usually Black Bins
6c/kg for organic/food  waste (usually a brown bin)
0c/kg for  recycling bins (Usually green)

There are no maximum charges  per kg set in the new legislation.

Note: If you live in a town with a population of over 500 – your bin provider is obliged to give you a brown bin for food waste and other organic waste. Food waste is typically the heaviest waste – so by putting all your food waste in the brown compost bin you will pay a lower charge than you would if you put it in with the general waste.

Waste is typically split into Black bins for general waste,  Brown Bins for organic waste and  Green bins for recycling. In Dublin these bin colours seem to be standard for all bin collectors.
In some areas of the country  they have different coloured bins.

Bin Charges Compared July 2016 (These are the rates some of the  bin companies were planning to charge before the suspension was announced )

Green recycling bins are all zero charge unless stated otherwise.

Thorntons €104 annual service charge . 35c per kg black bin and 20c per kg for brown bin

Greyhound  €169 annual service charge (was €60)  35c /kg for black bin ; 23c/kg brown bin. (They charge different prices for different areas)

Panda (Fingal)  €86 Annual Charge ; Black bin €3.20 per lift plus 27c per kg ; Brown Bin €2.56 per lift plus 16c per kg

City Bin  Dublin €155.48 service chg  20c/kg Black , 20c/Kg Brown

City Bin Athlone  €180 Service chg ;  26c/kg Black   16c/kg Brown
OR €120 Ann an 35c per KG  20c/kg Brown

Barna – Galway  €144 ann ; Black Bin 19c per kg; Green Bin 8c per kg; Brown bin €0.10 per kg.

Barna (Mayo)  Ann Charge €204 ; Black bin (Geneal waste) 22c /kg  ; Brown Bin (compost) 12c/kg

Ray Whelan (Carlow)  Service Charge €168   ; Black bin  23c/kg ;Brown  16c/kg

Greenstar Cork – €234 annual service charge , Black Bin 18c /kg ; Brown bin   14c/kg
Greenstar Fingal €156 ann  33c/kg black bin , 20c/kg brown
Greenstar NW  €100 ann , 35c /kg black , 20c/kg Brown 5c/kg recycling

AES – €180- ann chg , 25c/kg black , 15c/kg brown

McGraths (Co Mayo)  €352  annual  charge – which includes 300kg of residual waste (black bin)  After that they    at charge 22 cent per KG.

When (if)  everyone starts  being charged by weight – there might be a few sneaky people who start dumping waste into other people’s bins to try and reduce their own bin charges.  It will happen. You could buy one of these bin locks to stop that happening

There will probably be more roadside dumping of general waste and more garden burning of waste too – by people trying to to avoid these charges.

Will it Work ?

A national  survey in 2010 comparing household waste found that on average – homes with a pay-by-weight bin charges put 800kg a year in their bins  compared to 1294kg in pay-per-lift areas. This is a decrease of  38%.
The same survey also found that the average recycling rate for pay-by-weight households was 32% compared to just 20 or 21% for other charging methods.  ref