Recent currency conversions

One of the hardest parts of traveling outside of the EU, or any area that uses the same currency as your own is dealing with exchange rates. Many people traveling from Ireland for business or pleasure to their neighboring country, the United Kingdom, many times find themselves exchanging their hard earned euros for a lesser amount of British pounds.

As of late, any person traveling from the EU to the UK may have noticed a decline in the value of the pound compared to that of the euro. Within the last month and a half, the pound has hit record lows since 2009; the exchange rate is 88.92 pence per euro.  

This low extends to the exchange rate associated with the United States dollar. One pound sterling is currently exchanged for $1.268. In just the beginning of May 2019, the rate was $1.32/pound. This is a significant loss in value over one month’s time.  

This fall is heavily due to the instability of the economy that rests on the shoulders of the October 31 Brexit decision. The …

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Irish economy projected to make gains

According to a report posted by Ernst & Young (EY), one of the Big Four accounting firms, the Irish economy is seemingly on the rise. This multinational company with HQ in London, England, United Kingdom has been investigating the health of the Irish economy.

Through their research, the company found insight that allowed them to project how the Irish GDP will grow within the current year. As of now, they have estimated that the economy is to grow by 4.1%. This number is consistent with that of the Central Banks, who projected growth of 4%.

These numbers are based solely on the first three months of 2019, and are bound to change with more and more information collection. As of now, their predictions are based largely on substantial corporate tax returns and the addition of new jobs into the market.

Although there are significant positive projections associated with these findings, there are many possible repercussions. One of the most prevalent issues would be the lack of resources available within the Irish economy, but especially around Dublin, to be …

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Ireland tourism rates rise leaves no trace on total spending

During the first quarter of 2019, it seemed that tourism spending has fallen by 4%. What is odd about this number is the fact that the rate of travel to Ireland has risen by 5.5%. After further investigation, data showed that although the frequency of traveling to Ireland increased, the amount of time that a tourist was to stay in the country has decreased by 3.2%.

With tourism number usually around 12.5 million people over 3 months time, this 3% decrease has left only 11.64 million. 3pc can make a huge impact in total income, especially with the high number of visitors per year.

Tourism is a main form of income in Ireland, especially in the city of Dublin. With a significant decrease in the number of people spending in very tourist oriented areas, there may be a significant amount of competition.

This competition will occur all throughout the city, causing stores with similar products to decrease prices so that they can stand out from their competition. The problem with this tactic is the fact that price …

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Credit union caps

The change in the economic climate of Ireland in the last few months has caused many money lending institutions to change their policies. Credit unions are among the most common to change, with the current amount totaling 36 unions all across the state.

The largest adjustment to these businesses are focused around savings accounts of current members. People who are utilizing these saving tools are now being asked to keep their savings below a certain amount.

Some of the caps imposed on these deposit accounts range from €15,000 to €40,000, causing major problems for many of the current users. If an account is above the cap amount, the account owner is required to find an alternative place to store these additional funds in less than a month.

One of the largest draws towards credit unions for people is the ability to get higher interest rates on savings and lower interest rates on loans. High interest rates can be very beneficial on savings but without a significant amount of funds able to be held in an account you …

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Brexit takes more than just UK funds

As we are all well aware of by now, Brexit may affect the Irish economy. Although, one key part of the economy that we tend to overlook when it comes to this massive change is construction, which can and does play a significant role in our day-to-day life decisions.

Construction is much more intricate than just having laborers come in, swing around some tools, and build a structure. Specifics in supply and demand of laborers, resources, time, materials, consumers, money and a multitude of others aspects all play a part in construction outputs.

If Brexit is to occur, especially a no deal Brexit, there are a number of barriers that can arise. These barriers can and will be placed on construction companies, especially those currently working on a project. Some of these barriers include a reduced labor force, slower materials delivery, and possible construction penalties.

What current construction workers point out is that there is a steady decline in the amount of workers each year, and an even steadier decline in quality construction workers. If a hard …

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Housing market equilibrium missing it’s mark

According to the most recent Real Estate Alliance house price survey, Dublin’s property prices have decreased by €7500 in the last quarter. Additionally, the price of a three-bedroom semi-detached home on average has decreased by 1.7% since the end of December 2018.

Although these numbers seem to be a sign of positive economic advancements, there are a multitude of barriers that keep the people of Dublin from having a choice in regards to their current living situation.

One of the largest obstructions for both home buyers and banks is the ominous outlook of the Irish economy post-Brexit. Without a clear idea about how the UK’s secession from the EU will affect the Irish Market, banks and buyers alike are being cautious of how and when they give out their money.

For the most part, housing purchases below €350,000 have still been steadily occurring due to affordability of loans and sheer price of the home. This combination allows for increased certainty for banks that their consumer will be able to repay their monthly balance across the term of …

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What Brexit Means for the Housing Market.

How will Brexit affect the Ireland housing market? A question wondered by many citizens in Ireland, especially those currently active in the housing market.

Though not all bad, the housing market could be negatively impacted by the loss of international buyers.

As the nation watched as the British pound lost value by 10% with the referendum result being announced, and has dropped even more since then, housing in Ireland just got significantly more expensive for British buyers.

With current housing prices already being considered too high, for all buyers, international or not, the prospects of buying just got much more difficult for anyone newly searching.

The Irish Times reported recently that 60% of buyers of top-end homes are international, while 40% being more specifically from the UK.

By top-end homes, the Times is reporting numbers of €1 million and over homes. Meaning, the rest of the market, while without statistics from the Irish Times is also highly diluted by foreign investors.

Citizens looking to permanently move should not have much of an impact in their quest to buy as it …

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Mortgage market update in the UK

The mortgage market in the UK after Brexit was announced has been shaky. With everyone not knowing how Brexit will turn out, they are weary of committing to huge financial obligations.

However, the UK mortgage market is starting to see potential buyers increase again. In May, a total of 121,464 mortgages were completed.

Total mortgage loans increased by £3.5 billion, which is the fastest pace in more than a year. Mortgage lending has increased 2.9 percent in the past year. The prediction for next years growth is 2 percent in 2017.

The slowdown in growth we can see come from the Brexit. The value of the Sterling dropping makes customers reluctant to purchase a house. This has very negatively affected the housing market in the UK.

The consumer credit card and personal loan debts have been on the rise as well. This is also causing worry from the Bank of England’s Financial Policy Committee as consumer credit continues to rise.

More regulations are going to be put in place to slow down the lending growth and another measure to be …

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Is there or is there not another housing bubble?

In reference to No evidence of another Irish housing bubble, IMF says by Peter Hamilton on 26 June 2017 in the Irish Times.

The answer is no but close monitoring is needed. A Washington-based company, the International Monetary Fund (IMF), has confirmed there is no housing bubble in Ireland. Even with the quickly rising prices of property and an increase of mortgage approvals, IMF realizes this is significant but it is not a housing bubble… yet.

There is no statistics to show there is an imbalance of the pricing of houses. However, there is an increase demand for housing that could lead to an imbalance, especially with the Central Bank’s mortgage lender rules and the help-to-buy scheme for first timers. IMF has recommended close monitoring of the market to make sure a bubble is not formed.

The likeliness of this increase of housing demand should …

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Lending is Down in the UK

In reference to Lending levels in UK slow, data from banking industry shows by William Schomberg and Elizabeth Piper on 27 June 2017 in the Irish Examiner.

In the UK, borrowing has been at its slowest growth rate in over a year and a half. Banks have also been offering fewer mortgages which may be a sign of an economic slowdown in Britain.

The numbers are not lying. In one month’s time, consumer lending growth went from 6.4 percent in April to 5.1 percent in May. British Bankers’ Association naming it the weakest increase since October 2015. Mortgages went down from 40,686 to 40,347 in May which has been the smallest amount of mortgages since September.

Could this be a result from Brexit?

Since Brexit started, tension has been rising in Britain. The wage growth has …

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