Exchange Rate Update

Just back from 2 weeks at Tanjung Rhu where I read in the ';Straits Times'; Business Section that the 拢 sterling has fallen 25.08% against the ringgit over the last year. 12 months ago 拢1 bought RM6.9780; 6 months ago 拢1 bought RM6.4033 and Now 拢1 buys just RM5.2588. Unfortunately its bad news for British holidaymakers this year, no matter where we go.

Exchange Rate Update

Lets go back a little further, 15years ago GBP1 was as low as MYR2.9 so its still a good deal at current rates .....

Exchange Rate Update

A year ago, for MYR 3.12, I can get USD 1. And now it is MYR 3.73 for USD 1.

A year ago, I can buy HKD 100 at MYR 40, and now it is MYR 48 for HKD 100.

For my upcoming trip to Siem Reap where I%26#39;ll be spending USD, this is what my travelling partner told me: -

';irregardless of USD rise or fall, I%26#39;ve set my budget at MYR 1500(excluding air fare)';

I adore her attitude. (';,)

Well more like 4myr to the pound, not 3 Mr Starwood, but 15 years ago Mr Grumphy from the Penang forum was happy because Penang was cheap, Bill Clinton was the most powerful man in the world, FRIENDS started, Michael Schumacher won his first F1 championship, and Bill Travers died.

I don鈥檛 think that because the pound was a bit weaker than it was 15 years ago makes the pound a good currency deal for the Brits. Buying the pound yes. 12 years ago the bottom fell out of the Ringitt in the Asian recession, and the pound got stronger and stronger to an average of 6-7myr to the pound.

And yes the cost of living has risen as it has in Malaysia. So what you could buy for 1pound of ringitts 15 years ago certainly does not buy anything like today.

If you lost 20-30% off you income or spending money would that equate to good value for you??

No doubt you have traded your GP pounds for US dollars, and waiting for the GB pound to reach its lowest before buying GB pounds and make millions when the GB pound rises. Lucky you.

The average traveller has worked hard for their holiday and their spending money. So get real Mr Starwood, the world economy has dropped, some are winners and some are losers. Sadly for the Brits they have suffered more than most.

Still when they all spend their money at home and do not travel to economies that are relant on the travelling GB pound, and those with strong currencies against the GB pound also travel the the UK then perhaps we will all see the real impact on our economies and not be so smug about a good currency deal!

Ok not 15years ago, but 20-25 years ago the pound was almost at par with the USD and it was as low as 2.8-2.9 to the ringgit. And mind you, a hotel room at a 5 star hotel in KL would still set you back almost MYY300 (or GBP100) then. Today it will cost you less at GBP70-90 while the income for the average person from the UK has at least doubled.

20 years ago the UK average joe cannot afford a vacation in Malaysia staying at 4-5 star places, today they can even after the recent devaluation. Dont just look at exchange rate, look at what your money can buy ....

But 20-25 years ago travelling to the Med%26#39; was the average holiday for us in the UK. Travelling to Australia was like flying to the moon - we paid 拢400 to visit family in Oz in the 1980%26#39;s, and the flights are still about the same cost - hence why more folk like to travel really long haul and enjoy different cultures.

But%26#39;s its all material. 20-25 years I did not have grey hair and wrinkles, and the Petronas towers were not built, and was earning far less to what I do now. We did not pay 拢100 for a room, we paid 拢25 including breakfast and transfer at a 5* and thought we had a great deal as it was the most expensive hotel on offer!

Its just our expectations that have changed, and loosing 20-25% of your spending power overnight does have an impact. Ask all those poor folk in Spain how can no longer afford to live their on their British Pension.

Hi

Anyone know if its better value to change GBP to RM in the UK or Malaysia ?

At the mo, it seems I can get approx 4.8RM to 1GBP !

Thanks

:-)

Hi ,welcome all to money market and also the concept of purchasing power parity.

Well, now,Sterling one pound buys RM5.10,to buy Sterling one pound,it is RM5.25.

When it was USD1 to GBP1,that was back in mid 1990.

Well,it is depression economics,and it will no longer be inflation,but rather deflation.

sunandbeachDorset:hope you enjoyed your 2 weeks stay at Tanjung Rhu.

Well, not only bad news for British holidaymakers, it is also for Australian. In whole,for everyone in fact.

From my work, presently currencies of CHF,JPY,EUR are overvalued against the greenback,whilst CAD,AUD,GBP and NZD are undervalued against the greenback(i.e. USD) using the concept of purchasing power parity.MYR is also undervalued.

Hi

it is better to exchange when you get to Malaysia - you get a better deal in comparison.

mKiaratravel is right, the USD and the Euro are overvalued at the moment. Although the Pound has lost most and recoved least in terms of Western currencies. Hope it changes soon, but doubt it!

Certainly did enjoy Tanjung Rhu - great hotel and fabulous beach/views. Just thought I%26#39;d forewarn those about to start their holidays that their 拢s will buy less this year, as they also will in Europe where I have a holiday home and where prices have rocketed in restaurants. Realise its the same the world over but do think young families with kids are in for a bit of a shock - that is assuming they even book a hol this year! The local economy suffers if nobody visits any more - viscious circle.

Hotel rate on Sunday was RM5.07 to 拢. I took sterling plus a few ringitts from UK at about same rate. Didn%26#39;t use any cards out there.