Travel money: Post Office introduce multi-currency pre-paid card
The pound to euro exchange rate has been at the mercy of Brexit talks and coronavirus in recent weeks. Next Thursday marks the end of the Brexit transition period. Definitive news around a deal or no deal has yet to be announced with Post-Brexit trade talks set to continue today between negotiators.
Hope of a deal has previously served to lift the pound higher.
Money Saving Expert Martin Lewis recently warned there is no clear answer on whether or not the pound will increase or decrease in value until a deal or no-deal has been confirmed.
He commented: “If you’re trying to play the markets, the markets factor in what they know so that price is already in.
“It’s likely if we have a no-deal Brexit, the markets don’t like that and the pound will get weaker.
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“That will be good for you if cashing your euros in so you’d want to wait.
“If we have a deal, the pound will get stronger which will be bad for you.
“I don’t know which one of those is going to happen.”
The weekend also saw new covid measures toughen in England, with more regions plunged into Tier Four and Christmas all but cancelled.
What’s more, multiple countries have now banned flights from the UK amid fears concerning a new strain of the virus identified, adding to travel chaos.
The pound is currently trading at 1.10942 against the euro, according to Bloomberg at the time of writing.
So what does all this mean for your holidays and travel money?
Post Office Travel is just one of many foreign currency providers.
The service is currently offering a rate of €1.615 over £400, €1.0777for over £500 or €1.0825 for over £1,000.
It’s important to be savvy about when you purchase your holiday money.
“Don’t wait till the last minute; don’t buy from the airport – but most importantly, never use a credit card to buy money,” Shon Alam, founder of currency exchange platform Bidwedge, told Express.co.uk.
“If you buy travel money on a credit card, the card company sees this as taking money off the card in cash, therefore it attracts a higher interest rate and an extra charge as with all card companies.
“It is also worth noting that with exchange services, credit card purchasing can – and does – charge a higher overall cost.”
It’s important holidaymakers protect themselves appropriately, too.
“If you use an online supplier, do your research and ensure they are a real vendor to avoid losing your money to a scam,” Alam warned.
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