Tourism and Foreign Exchange: Will I Have to Pay More?
As winter starts to draw to a close, it’s only natural that we all start to think about summer sun. However, thanks to major 2016 political events such as Trump’s ascension to the presidency and the UK’s decision to leave the EU, we’re seeing quite a large amount of fluctuation in the foreign exchange markets. In this post, we’ll discuss why it’s happening, what it means for you and how it could impact your holiday.
Why Are Prices Moving?
Foreign exchange rates fluctuate depending on a number of world events, such as elections, economic news announcements and wars, to name but a few examples.
Because 2016 was such a big year politically, foreign exchange rates are currently in flux. Britain’s decision to leave the European Union caused the value of the pound to nosedive, and in some places it was only worth the same amount as the euro shortly after the vote.
Likewise, over in America, the election of Donald Trump caused the value of the dollar to skyrocket, as well as the value of many of the stocks on Wall Street.
However, the value of a currency will always rise or fall against the value of another currency. This is why sometimes it costs you more to buy dollars or euros than it does at other times.
Thanks to the falling value of the pound against both the dollar and the euro, your holiday abroad this year could cost more than ever before.
How Does It Impact My Holiday?
If you’re heading on holiday to Spain and the value of the pound falls against the euro, then you’ll need to spend extra pounds to get the euros you need for your holiday food and cocktails.
As such, even though the value of the pound may seem unrelated to what we all do day to day, it can actually have a big impact, making your holiday more expensive than it would otherwise be.
However, it’s important to remember that the flipside can be true, too. If the value of the pound rises against the euro, then you’ll have to spend less to get the euros you need.
As a result, it’s wise to track the currency exchange rates closely. If you get good rates, you could potentially save tens, if not hundreds of pounds on your holiday.
How Can I Track Them?
Exchange rates are easy to track. You can always take a look in at your nearest bureau de change, your local travel agent or even your bank. They usually have boards that you can see easily to compare prices and see how they fluctuate.
However, if you see a rate that you like, these are often not the best ways to purchase your currency, as the fees can be extortionate. Thankfully, help is at hand. If you go online, you’ll find dedicated currency exchange websites; here you can transfer money for up to 80% cheaper, than if you made the same transfer with a bank. This way, you can maximise the foreign exchange rate, so you get more money for less.
Changing foreign exchange prices could mean that you need to spend more on your holiday than you otherwise would; especially if you’re going to Europe or America. However, if you’re not going until the summer, then there’s no real need to worry yet. The value of the pound can go both up and down, so track rates carefully and get a good deal for you. This could mean buying your spending money earlier than you otherwise would.
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