Over 50 per cent of Brits fear foreign currency will become more expensive post-Brexit, survey reveals

Currency exchange

Tuesday, October 30, 2018

Fifty four per cent of British people believe foreign currency and holidaying will become more expensive after the UK leaves the EU, a survey has revealed.

The survey was carried out by currency exchange platform, WeSwap, and showed that 30 per cent of Brits also believe that Brexit will impact holidays more than any other aspect of life.

The pound reached a near two-month low following the announcement of the 2018 Autumn Budget yesterday, despite being on the rise just moments before the chancellor of the exchequer revealed his plans.

 

 

Speaking to talkRADIO, WeSwap's chief marketing officer, Rob Stross, said the fall in the pound was down to "uncertainty in the market", and suggested it could actually increase in value in the lead up to Brexit and beyond.

"Whether that's the Budget, or an election, or Brexit, if there's uncertainty in the market that tends to have an influence on the value of the pound with overseas currency," Mr Stross explained. "Generally the pound is a bit weaker as people are actually trying to figure out what the long-term impact is."

He added: "From looking at the rates and getting an understanding of what the Budget is going to be, there is a general consensus that it could actually be good for the pound. It could lead to a stronger pound in the long-term."

 

Tips for holidaymakers

Mr Stross suggested that in the interim holidaymakers should make the effort to shop around for currency, and suggested pre-paid cards as a way to avoid losing out due to quickly fluctuating exchange rates.

"Pre-paid cards generally are a good way of getting a better rate for your money. They all do a similar thing in terms of allowing you to lock in a rate in exchange, and you know what rate you're going to get and invariably those rates are very competitive.

"Credit cards that specialise in overseas travel, again, a good viable alternative. Cash can be good but it's about taking the time and researching who are the best providers out there rather than leaving it to chance at the last minute. But getting cash is a good way of knowing what you're going to get for your pound and locking that rate in in advance. You need to plan ahead."

Mr Stross added: "One other thing to think about is potentially hedging some of your money, so rather than exchanging all of it now, potentially exchanging a portion of it now and a portion of it later."