Home Brexit Why holiday makers should plan ahead and save money

Why holiday makers should plan ahead and save money

by LLB Reporter
19th Feb 20 6:01 am

With the pound sitting relatively stable, holiday makers should consider planning ahead and buying their currency ready for their travels this summer.

Following the Brexit Day on the 31 January a few days of uncertainty around negotiations saw an initial positive impact on the pound against the Euro. However, over the past weeks it has seen a couple of surges and plummets showing there is still uncertainty whilst we are in a transition period. Recent research shows that some of the non-euro currencies are weaker than in summer 2019 but the Euro is now up by around 2% compared to 2019, meaning now is a great time for holiday makers to purchase their travel money for the summer.

Post Brexit travellers should look forward to less drama with the transition period avoiding any disruption at passport control.  Warnings were issued last year around potential restrictions for foreign travel in the event that the UK left without an agreement. However, rules on passport validity, EHIC healthcare and permits for driving abroad will remain the same until at least the end of the Brexit transition period in December.

Many holiday makers seeking winter sun in locations such as South Africa can benefit from seeing more South African rand than they would have a year ago and new research shows that currently Turkey is the destination that offers the most for holiday makers money as the pound is worth around 19% more against the Turkish Lira than it was a year ago.

The pound had frequent dips in value since the results of the referendum became apparent on 23rd of June 2016. An initial drop was followed by several slumps and a constant overall decline. This leaves the pound sterling to euro exchange rate 15% lower than pre-referendum levels.

The pound is proving to be far more stable since it’s 10-year low in October, value of the pound has increased by around 12% over the Euro but with ongoing uncertainly during this transition period now is a great time to buy travel money for the summer.

Anthony Rice, CEO at Fourex explains that “The value of the Pound has been under a significant period of pressure since the referendum result however the end of 2019 and the start of this year has provided some improving stability with our exit from the European Union not yet having a significant effect.

On that basis, now looks like a good time to buy currency for travel later this year, locking in that value as we’re not sure what to expect as we continue through this transition period”

The pound continues to hold its ground now we are post-Brexit – but will it last?

With US Dollars and Euros being at the top when it comes to the most traded currencies, people would be wise to begin thinking about their travel plans for 2020. There are always questions when it comes to purchasing travel money, do I buy my travel money in advance? Do I wait to see if the value of the pound will increase, how do I get the best rates when buying my holiday money?

When there is uncertainty around where the rates will sit there is always the option to play safe and purchase your travel money in advance whilst the rates are looking strong. Many of the major currency providers offer a home delivery service meaning its quick and easy to purchase travel money at competitive rates. Holiday makers can always order half now and half at a later date if they do not want to purchase all their currency at once.

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