The continued slide of the dollar against the Euro (and, by extension, the Czech Crown) is starting to affect just about everyone I know, and not just those anointed ones who have bank accounts in offshore tax havens.
Most expats I know here are on the downside of the dollar’s slide, which has resulted in essentially a 20% pay cut in the last year and a half.
In currency politics, the winner will either be expats or exports. And US expats are getting the short end of the stick right now.
In a few cases, there have been silver linings to be found, at least for Czechs, because the Crown is gradually increasing its ties to the euro. One Czech friend was surprised to find he could afford a new iPod for less than 10,000 Kč. Another was about to head to the US on vacation, and was pleased to find his money going farther than he’d originally planned.
I’ve heard some prognostications that the Crown would go to – gasp – 22 to the dollar, but others have said that today’s low of 25.45 is about as bad as it’ll get. What do you think? Put your answers in the comments and this time next year I’ll treat the winner to at least 10 beers either here or in the US – whichever’s cheaper 😉