Bad news for those travelling to Euroland in 2001. Today's exchange rate is 172 pesetas / US Dollar. When we were there in September (and when MM was there) it was, like 193: a Big difference. Expect Euros (and pesetas) to strengthen further as Alan Greenspan and the US Federal Reserve Bank make more Prime Rate cuts to stimulate the US economy.

By June 30, I expect to see the U.S. Prime Lending rate around 5.5%, the Euro at what Economists call 'parity' (one for one) and the peseta around 125/U.S. Dollar. Instead of mil pesetas translating to a shade over $5 US Dollars, it will be, like $8 dollars. The hotel room in Sevilla that was a fairly good deal at $50 (ESP 9.800) in Sept 2,000 will cost $80 in July 2,001.

That's not very good news for those of us in non-Euro countries (US & UK). Prices may have been adjusted upward to compensate for the weakness of the Euro. Don't expect them to come back down anytime soon. Consider this a move toward stability & equilibrium on world currency markets; and, if you got to travel to Spain in year 2,000, consider yourself one of the lucky ones.

[This message has been edited by Eddie (edited 01-06-2001).]

So does this mean I should go ahead and exchange some US$ now rather than waiting til June?

Geez, when I was in Spain 5 years ago the dollar was only worth about 100 pesetas, so 172 doesn't sound bad to me at all.

to karenwishart:
My predictions are based on superstition and ignorance. They may be correct or they may not. If they do come to pass, and if your travel plans are pretty firm, it wouldn't be a bad idea to invest in a euro-tied currency (Spain-Peseta) and expect it to appreciate from now to when you take your trip.

to Wendy E:
In the early to mid-60's the dollar/peseta exchange rate was 60 pesetas / dollar.

Well, it makes me feel not quite so bad about taking half of Spain home at 180 pesetas to the dollar two weeks ago. The thought of "cheap" and "expensive" is so relative. We went to a major concert that cost 3000 pelas (a little over $16). That was "cheap", but at the 1995 rate of 130 to the dollar it would have cost $23. And at the 1992 rate of 100, it would've been $30. Quite a difference!!

karen, whatever you do take into account that it's hard to get a good deal on Spanish currency while here in the US.

Trying to predict the currency markets is quite difficult. Few expected the Euro to be as weak as its been since its inception. I'm more optimistic than Eddie, I don't think it will go much below 150 pts to the dollar.

When I was in Spain for the first time in 1992-93, people thought of the dollar as 100 pesetas. The dollar dropped to 87 pesetas within the first few weeks and then slowly rebounded, reaching 100. So some of my fellow students decided to change all of their money to pesetas at the rate of 100. Well, through the year, the dollar kept rising ... 105, 110, 112, 115, 120, 125, 127, 130 and those of us who still had dollars smiled at each change while the people who had changed at 100 grumbled.