Tranona
Well-known member
The fact is that nobody knows how the negotiations will pan out and what effect it will have on the ex-pat community so we are quite right to be concerned. I would reckon that everybody will have cause for concern once the true cost of leaving the EU becomes clear. The only thing the economists have agreed on for as long as I can remember is that the Brexit will be detrimental to the UK economy and with negotiations likely to drag on for several years we have to live with the uncertainly of what the future holds.
on the subject of the exchange rates you will be aware that until the Brexit vote Sterling was trading at 1.36+ against the Euro and where is it now ? At 1.19 and forecast to drop even further as the details of Brexit and the economy start to become clearer.
You are right. Nobody really knows what will happen as the vote was about principles rather than policies. We are now beginning to see the differences in approach from the various contender for PM, but it is likely to take months for a basic negotiating position to emerge and then 2 years or more before the final deal is done.
Uncertainty is nothing new. Just think of the swings in the foreign currency markets over the last 30 years or so. As examples the period 2006 - 2010 when I was spending a lot of time in Greece the rate went from 1.5 down to 1.1. 18 months ago I started looking a buying a new boat when the rate was 1.2. In May last year I bought it at a rate of 1.36. Now it is back to 1.2.
We have no control over exchange rates except where it might be prudent to hedge your known exposure (as I did with this boat purchase and the previous one in 2001), but, while there is some immediate impact on those living in one currency with income in another, the reality is that the sort of fluctuations we are seeing now can be absorbed by many in a variety of ways.
Of course in the longer term it may be that it is a combination of factors may make a particular strategy less attractive, but it is unlikely that there will be dramatic changes at a personal level. After all bringing it back to liveaboards, there has always been a cycle where people adopt that lifestyle because it suits them and conditions are favourable, then change tack after a few years because circumstances change.