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Dollar rises against Euro


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t2andreo

Veteran Member
Donating Member
Camino(s) past & future
Frances: 2013, 2014
Madrid: 2016
Portuguese: 2015, 2017
Invierno: 2018
Voluntario: 2014 to 2017
#2
But, only if YOU can choose the exact moment of purchase. With international events so dynamic. I have watched the Euro bounce up and down daily. If you think you are ever going to get a bargain, or even parity (1 = 1), fuggetaboutit!

The European Central Bank (ECB) very carefully manages (manipulates) the value of the Euro to keep it strong against the dollar, in particular. Other currencies usually trail in a synchronized fashion.

This has more to do with export - import issues and trade surplus imbalances than raw politics. But, sometimes external political events conspire to overcome the ECB's ability to catch the swing in time to control the results.

I suspect that is what is happening just now. There are so many global events, both good and not so good happening, that the ECB is working as fast as it can to respond and adjust. Who knows, we might just get lucky... But, always remember, the ECB is keeping the best interests of the EU at heart when keeping the Euro strong against other currencies. They do not care that you have to pay 20 or 50 percent to buy their currency. In fact, they much prefer it that way.

Hope this helps.
 
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Suzanne S.

Active Member
Donating Member
Camino(s) past & future
(2015) May--Camino Frances, SJPdP to Santiago; (2017) May--Caminho Portuguese, Coimbra to Santiago
#3
When I walked in 2015, the rate was nearly 1:1. Those were the good old days...
 

Mark Barnes

Old Engineer
Camino(s) past & future
Frances - September - November (2017)
#4
But, only if YOU can choose the exact moment of purchase. With international events so dynamic. I have watched the Euro bounce up and down daily. If you think you are ever going to get a bargain, or even parity (1 = 1), fuggetaboutit!

The European Central Bank (ECB) very carefully manages (manipulates) the value of the Euro to keep it strong against the dollar, in particular. Other currencies usually trail in a synchronized fashion.

This has more to do with export - import issues and trade surplus imbalances than raw politics. But, sometimes external political events conspire to overcome the ECB's ability to catch the swing in time to control the results.

I suspect that is what is happening just now. There are so many global events, both good and not so good happening, that the ECB is working as fast as it can to respond and adjust. Who knows, we might just get lucky... But, always remember, the ECB is keeping the best interests of the EU at heart when keeping the Euro strong against other currencies. They do not care that you have to pay 20 or 50 percent to buy their currency. In fact, they much prefer it that way.

Hope this helps.
I watched the dollar to euro for over a year prior to my walk in 2017. I bought euros through my bank in Texas doing several buys over a two year period to “dollar cost average” when the dollar was higher. I bought 2,000 euros in four buys of 500 euro each time. I saved a couple hundred dollars doing this. It may not be worth it to some but it was to me. You should be able to go to your banks web site and see what the dollar to euro buy rate is for that day/hour. There are several web sites that track this to keep you up on what the dollar is doing against the euro in real time.
 

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t2andreo

Veteran Member
Donating Member
Camino(s) past & future
Frances: 2013, 2014
Madrid: 2016
Portuguese: 2015, 2017
Invierno: 2018
Voluntario: 2014 to 2017
#6
Mark, you did it the 'right' way. But few others will go through such an effort.

Personally, I maintain a non-resident bank account in a EU country. This gives me a debit card, with an IC chip easily accepted all over Europe. I have done so, since I left Europe, having lived there for a few years.

A month or so before I plan to travel over, I assess the exchange rate. If it appears to be fluctuating, I wait. If it has been constant or on an upward (negative) trend, I just pull the proverbial trigger on the funds transfer.

Using my US Paypal account with their Xoom service, I can transfer USD into Euros, moving them to my EU account at the most favorable rate. The interbank relationship and rate is the same, but they charge a very nominal amount for the service. The fee they charge is reasonable (IMHO) for the convenience of using a native EU debit card to shop in Euros.

I never worry about cashing in all my Euros while I am there, as I am always returning somewhere in a few months. In one respect, over time, this ends up behaving very similar to dollar cost averaging.

Hope this helps.
 

nycwalking

Veteran Member
Camino(s) past & future
CF: (2001, 2002, 2004, 2014). Hospitalera: 2002, Ponferrada. 2004, Rabanal del Camino.
#13
My first camino was in 2001. Spain was on the peseta. True good ole days!
 

biarritzdon

Veteran Member
Donating Member
Camino(s) past & future
CF011, CF012, CP013, CF014, CA015, S.Anton015, CF015, CI015
Ditch Pig016, CF017, CP017, CdN(018)
#17
When I walked in 2015, the rate was nearly 1:1. Those were the good old days...
The good old days was when I was able to buy my apartment in Biarritz with $0.75 for each Euro.
 

t2andreo

Veteran Member
Donating Member
Camino(s) past & future
Frances: 2013, 2014
Madrid: 2016
Portuguese: 2015, 2017
Invierno: 2018
Voluntario: 2014 to 2017
#18
The VERY OLD good old days. That must have been around when the Euro was first implemented in France. I have a closet full of Mephisto dress shoes that I bought for about USD .86 to the Euro at a similarly medieval time. Being retired, these very fine and not worn shoes now just sit in the closet.

Yup! The VERY good old days my friend...
 
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wisepilgrim

Guidebook Author
Donating Member
Camino(s) past & future
Many
#19
Am I the only one that misses the Peseta? Not converting to dollars, which I still can´t manage, but the cost of goods was much friendlier.
 

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