The news regarding the pound falling against the dollar and the euro may seem devastating, particularly to holidaymakers. David Cameron, who was firmly in the remain camp, claimed that Brexit would cause a family holiday to cost £230 more and the current exchange rates may prove him to be right.
The pound hit its lowest level in history on the 12th of October, something which understandingly has sent alarm bells ringing to many, though there are many ways to make the best of the seemingly bad situation.
Don’t trade at Airports
Avoid trading currency at airports, as it it is at a premium. In fact, exchange rates at airports can cost you up to 10pc more meaning that you are more than likely to be left out of pocket, just this week, Stanstead airport was offering €0.91 to the pound, with Southampton offering just €0.88. Buying on the day you fly means that you are more likely to fall victim to the fluctuating rates.
Play the waiting game
If you are able to to, wait until the pound hits at least 1.2/1.3 against the euro and the dollar before you buy, however, it would be ideal if you could wait until it hits the 1.4 mark as your spending money won’t suffer nearly as much. Currently, the pound is 1.22 against the dollar and 1.11 against the euro. A year ago, the pound was 1.35 against the euro, and its recent level is a six-year low. And for the dollar, a year ago, the pound was 1.54, but is now at a 31-year low.
After Brexit is either confirmed or cancelled, either result will give markets certainty and eventually lead to a rise in the valuation of the pound.
Cancel your Holiday, have a staycation instead
Although it may seem like the last thing you wish to do, you can cancel your holiday if the exchange rate has hit you that badly – take the hit on the deposit and have a staycation instead. You won’t be hit by the nasty falling exchange rates and there’ll be none of the hassle that comes with going abroad.
Though, if you still wish to go abroad, holiday rental firm Owners Direct have locations around the world and are very reasonably priced. You can travel to the likes of Montenegro, Tuscany, Cape Verde, Switzerland and many more from just £28 a night. Be sure to look for holidays further afield, the likes of South Africa, Canada, and Argentina are all spectacular destinations and offer up to 60pc more for the pound compared to last year, so it’s not all bad news!
Though be sure to check any money anomalies before you travel as some countries do not accept UK cards in their ATMs.
Monitor Forex markets
Information regarding currency and exchange rates can be tracked by monitoring forex markets. It allows you to compare the current exchange rates with those of the past and will allow you to plan for your holiday, it will also tell you of any spikes and if it happens to hit your ideal rate then you will be well informed.
With Brexit and the current economic climate, it can be difficult to predict what’s going happen to next, so in future, buying currency well in advance may be a good plan.