Travel money query

Desert Orchid

Desert Orchid

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It was in my mind that I asked this not long ago but I don't see it anywhere.

Unless my memory is playing tricks on me, the last time I was in Spain (three? years ago), a quid was worth around 1.3 euros, maybe 1.4. They seem very close to parity at the moment. Is that right?

We were in USA two summers ago and a pound was worth about $1.50, which seems about the same these days.

What's happened?

It never bothered me paying about 12 euros for a bottle of wine in the hotel restaurant. £8 seemed reasonable compared with UK prices. If it's working out at £11, I might be tempted to make it stretch to a second meal!
 
Your memory is spot on. Sterling is weakening like a good thing at the moment.

1 euro is currently equal to around 91p. Or 1 pound is equal to €1.10.

Up until just over 2 years ago, the EUR/GBP rate had for a long time been very steady at 67p to 70p. Which is equivalent to a GBP/EUR rate of €1.40 to €1.50.

It makes it very expensive for Scottish people travelling to Europe. Conversely, it attracts more tourists to Scotland and makes Scotland a more attractive place for foreign investment and helps Scottish exports.
 
F*ck that...

I want to know whether I'm paying 70p or 90p for my pint in Spain!!!

Seriously though, is the weakening pound a long-term thing? Am I better off getting travellers cheques and hoping the pound strengthens or just taking what's on offer just now (bearing in mind I'm off on 27 March!)? And would it really matter much for the sake of a few hundred quid?
 
Nobody can tell. There are as many buyers as sellers.

Assuming you spend £400, it is unlikely that Eur/GBP will move more than 10% in the coming month, so you are unlikely to gain or lose more than £40 by doing it now.

Just go for the most cost-effective way of exchanging money. Don't worry about the timing.
 
Just checked some coversion sites. Seems the answer is no. I see too that Crown Currency Exchagne is offering better rates for delivery a few months ahead of now. Does this mean they are predicting the pound to strengthen again in that time?

The exchange rate with the dollar looks decent just now and even better down the line. Wish I was going to America!!
 
Back in January, I noticed dirt cheap air fares to New York from Dublin for the Easter Break. By the time we had decided to go and arranged dates, which took no more than a couple of days, the price had gone up €500 for the group. The hotel cost at least €500 more than I'd expected due to only-to-be-expected fussiness on the part of my beloved. I checked a week later and could have got the hotel for €300 less. The dollar has strengthened by about 7% since the initial commitment and I've only just discovered the outrageous exchange rate the credit card company have charged for booking show tickets, that will be replicated every time the card is used.

I'm hoping to make a small bottle of still water and a bagel stretch a week.
 
DO - to answer your question re the 'forward' rate quoted by Crown, the forward rates do not reflect any sentiment over where the rate might go in the future. They simply reflect the differential between the interest rates of the two currencies. In simple terms, the higher rate available for future delivery compensates you for holding the lower interest rate currency in the interim. You could achieve the same result by purchasing the euros now, and putting them on deposit with a bank, earning a better rate of interest than you would do on the Sterling.

Also, your question re moving into dollars and then euros: if it were possible to make a risk-free profit doing this (known as triangular arbitrage), it would be immediately eradicated by supply and demand, in the same way that if it were possible to make a profit by backing every horse in a race, the prices would soon adjust.

As someone mentioned above, the best thing is not to worry about which way the rate is going - it won't make too much difference on a few hundred quid. Concentrate on not getting ripped off by whoever does the conversion - sometimes they will take a huge margin away from the market or 'interbank' exchange rate. Often the best way is to use ATMs when you're actually there.

And the golden rule is never do it at the airport - guaranteed to be the worst rate possible!
 
Santander's Zero account offers the same, but you have to have your mortgage with them.
 
I travel a fair bit around Europe and use ATMs. They are convenient and if you withdraw relatively big amounts each time the less it costs in percentage terms.

Mind you, a couple of bad experiences with machines swallowing cards and the like have persuaded me to only use machines located at a bank premises, preferably during working hours. If a machine in a shopping centre or airport confiscates your card, or gives you the wrong payout, there's nobody at hand who can help you.
 
Not with Nationwide Flex account - with all the others (or most of them) yes, you are right.
 
I love it! Every time we come to england we calculate how cheap the meals now are :) - finally we can even afford to stay in a posh B&B .....
 
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