The stock market is extremely volatile at the moment, and the political uncertainty around Brexit is bound to reflect on the exchange rates.
Over the past few days, The GBP/ EUR exchange rate has been volatile, and the highest exchange rate was experienced on 14 February 2020, but this rate fluctuated the next day. Currently, the GBP/EUR is at 1.14 euros for a pound and is steadily rising. The projections are, however, uncertain based on the Coronavirus pandemic that is hitting economies globally.
With this in mind, you might want to hold off on buying your euros until the prices are lower.
Current exchange rate
At the time of writing, 1 GBP is equal to 1.14 Euro, according to Exchange Rates Org.uk, a clear, steady rise from the previous week. The lowest exchange rate was experienced on 18th march 2020 with 1GBP trading for 1.07 EUR according to their history page.
Will the exchange rate fall after Brexit?
Everyone is wondering what will happen to the Pound after the UK leaves the EU, but the thing about financial markets is that you have little or no control over the future. It is difficult to tell how strong the Pound will be after Brexit. However, here are some tips you can use to get the best deal for your travel money.
- Avoid using your credit card- this will only incur you extra charges so you could either use your debit card or swap your sterlings for your preferred currency
- Focus on the overall costs- don’t just look at the exchange rate. Focus on other fees including the commissions
- Monitor the exchange rates- the best way to get the most of your holiday money is by keeping a close eye on the exchange rates and then taking advantage when top rates are available. This way, should the pounds weaken after Brexit, you will not feel bitter.
Since the UK is still in the transition period, the strength of the Pound is unlikely to have a drastic change. However, what happens next is fully dependent on the future relationship between the two parties. Should they not come to a consensus and the transition period is not extended, the Pound will be impacted.
How else will Brexit impact travel to Europe?
- Passport validity– To travel to Europe after Brexit, you won’t require to have six months left on your passport. You only need to ensure that your passport is valid during the entire time of your travel. Additionally, travellers from the UK won’t require a visa to travel to Europe after Brexit.
- Pets– You will still be able to travel with your pet after Brexit without incurring any extra charges.
- Travel insurance– UK travel trade association advises that the best thing to do would be to book a package deal. This will transfer responsibility from you to your travel company by ensuring that your holiday travels are smooth and that alternatives or refunds are provided in the event they cannot fulfil your holiday plans. It is likely that travel insurance could rise in the long run.
What Documents Will You Need?
You are probably wondering if you’ll need a visa but your passport will work until the transition period is over. Once the transition period is over, you will only be able to travel without your visa for 90 days out of the 180 but cannot study or work in Europe.
