Travel money: Post Office introduce multi-currency pre-paid card
The pound to euro exchange rate has performed well this week during a very volatile time. “GBP/EUR hit a new nine-month high and closed above €1.13 for only the second time since May last year,” said George Vessey, currency strategist at Western Union Business Solutions, yesterday. This success continues this morning as GBP rises further.
The hike is “largely thanks to the successful and rapid vaccination rollout in the UK so far, raising hopes that social distancing restrictions could be lifted sooner, and the economy could bounce back quicker than currently forecast,” explained Vessey.
However, “concerns” over the Bank of England’s rates announcement tomorrow have perhaps prevented sterling from being able “to significantly extend its gains,” said experts.
New data is out today but will likely not have much impact on GBP.
The pound is currently trading at 1.1342 against the euro, according to Bloomberg at the time of writing.
We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.
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.
“Sterling remains underpinned against the euro by the UK’s impressive vaccination rollout.
“Though [it] has thus far been unable to significantly extend its gains, perhaps as a result of concerns over the BoE’s messaging around negative rates tomorrow.
“As a result, today’s PMI figures are likely to be ignored by the market, with attention shifting to tomorrow’s BoE, though 1.13 looks to be a key line in the sand for now.”
So what does all this mean for your holidays and travel money?
Post Office Travel is currently offering a rate of €1.0921 over £400, €1.108 for over £500, or €1.1136 for over £1,000.
Holidays are currently on-hold as the UK continues to endure a third lockdown.
International and domestic travel is banned, with Britons urged to stay at home.
So what should holidaymakers left with unused holiday money do at this time if they can’t get away?
James Lynn, co-CEO and co-founder of Currensea, advised: “It may be tempting to change back leftover travel money, or even take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.
“However, I would advise against this. Market movements are often more marginal in reality than they appear.
“Especially during this volatile time, it’s safer to keep hold of your money in your UK bank account over purchasing or exchanging and holiday money.
“Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the Pound has improved even more significantly than the level it is at today.”
Lynn continued: “On top of this, when it comes to your consumer rights, using a travel card will always be a safer and cheaper option than using cash.
“Multi-currency travel cards that enable you to spend in the local currency (in Currensea’s case directly from your own bank account, cutting out international charges) will always be the best way to save money.
“This will enable you to spend directly with local services while on holiday using the ‘real-rate’ and only take out cash if needed from an ATM.
“The absolute no-go is to take out money from an airport bureau de change which can result in you being hit with an exchange rate of up to 10-20 percent when exchanging or buying back cash.”
Source: Read Full Article