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Spending Greenbacks Travel: Who's Laughing Now, Europe?

Where: Iceland
October 9, 2008 at 10:45 AM | by | Comment (1)

The government of Iceland has taken over the country's largest bank, after snatching up two others earlier this week. And in London, frightened investors are buying up dollars, the last refuge for Europeans looking to keep their assets at least somewhat safe.

In travel terms, that means going to Europe has just gotten way cheaper for people spending dollars.

On September 23, it cost $1.47 to buy a euro, but today you can get one for just $1.37. The value of Iceland's króna plunged after news of a possible national bankruptcy: After trying to peg the exchange rate to the euro, the government gave up the effort and asked the IMF for help.

The situation is still in flux, but what's certain is that a dollar only bought 75 króna three months ago; a buck will buy at least 110 today, if you can find a bank that still has any cash! (Trading in the currency is effectively frozen right now.)

England, too, is getting a bit cheaper, with the pound down more than 10 percent against the dollar over the past three months. Even bank-happy Switzerland's franc is off, down 9 percent compared to July.

Related Stories:
· Iceland's Krona Currency Trading Halts [Bloomberg]
· Iceland May Ask for IMF Loan [Bloomberg]
· Dollar Rally to Continue [Reuters]
· Pricey Euro Not Bothering President Bush [Jaunted]

[Photo of 500 shaky euros: tunguska]

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Return to » Spending Greenbacks Travel: Who's Laughing Now, Europe?


We weren't laughing, guys

Especially those of us who live in Europe but are paid in dollars. Life here the last couple of years on a $1.50ish - sometimes $1.60ish Euro has hardly been unmitigated joy.

What's nearly as annoying, though, is seeing an improvement in the exchange rate come through the present conditions. We'd have preferred anything but.

We'll be glad to see more of you other-continent people wandering through here, though. We missed you, kinda. And some of us, too, are looking forward to heading up to Iceland and having a visit on slightly stronger terms.

(A side issue: it's not uncommon in late Autumn to see Dublin Airport suddenly fill up with seasonally-depressed Icelanders who've arrived to get a little more sunlight, do some early Christmas shopping, and pick up some cheap booze. Wonder if we'll see less of that during the present ructions, or more?)

dduane on October 10, 2008 at 4:55 AM #Permalink

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