Travel money: Post Office introduce multi-currency pre-paid card
The pound to euro exchange rate has “traded largely unchanged” this week, said experts. Sterling has failed to see another boost due to an absence of “fresh impetus”. Little data is due out that will impact the pairing, too.
Coronavirus continues to remain in focus.
Experts predict a Covid vaccine “on either side of the channel” should “benefit” sterling.
The pound is currently trading at 1.1252 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.
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“Sterling has traded largely unchanged against the euro over the early sessions of the week,” said Brown.
“The pair lack fresh impetus and economic data is still of relatively little concern to the market.
“As such, while this morning’s UK labour market report may not have much impact.
“We look to the differing speeds of Covid vaccination on either side of the channel to drive the pair; something that should benefit the pound.”
So what does all this mean for your holidays and travel money?
Post Office Travel is currently offering a rate of €1.0854 over £400, €1.1012 for over £500, or €1.1068 for over £1,000.
Many Britons may well have found themselves lumped with holiday money they bought only to find out their trip was cancelled due to Covid.
How worth is it to exchange your holiday money back into pounds if you cannot get away now?
Shon Alam, founder of new travel money buy and sell service Bidwedge, explained that if you think you will be able to use the currency again in the near future then it’s worth hanging on to it.
However, if there’s no trip abroad on the horizon, it’s best to exchange.
“We all do it – get home from a trip and chuck our change in the drawer ready to use for next time, but by the time next time comes around, we always forget about it,” he said.
“According to ABTA in a 2018 report, Brits each took 1.6 holidays abroad, so, in reality, we actually only go overseas around once a year on average. So don’t waste it – change it!
“If you are a regular traveller – for example if you travel monthly or for business – then I would keep currency that you are likely to use again if there are particular locations you travel to regularly.
“However, any longer than that, and I would turn it back into my home currency.”
If you decide to change the money back into sterling, the first step you should take is to check the bank rate.
“This is the rate that the banks sell to each other,” said Alam. “At Bidwedge, we buy back at the bank rate and charge a small fee, sticking to our transparency policy to help give customers the best value for money.
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