Holidays: Exchange leftover travel money now to get the most for your pound

Holidays: Exchange leftover travel money now to get the most for your pound

Travel money is often bought in advance of holidays as part of the exciting getting-ready process. However, with so many travel plans scuppered this year, the chances of would-be holidaymakers being lumbered with currency for trips that never materialised is high. So what should you do with unused holiday money?

According to one expert’s travel advice, now is the best time to exchange foreign currency back into GBP.

The pound has slumped to a six-week low.

Sterling has plummeted against the dollar and euro, as Prime Minister Boris Johnson prepares for the possibility of a No Deal Brexit.

Talks currently remain stuck at a critical stage, with Johnson set to travel to Brussels later this week in a last-ditch effort to salvage a trade deal with the EU.

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The PM will be meeting European Commission President Ursula von der Leyen, to try and reach a post-Brexit trade deal before the UK’s transition period ends on December 31.

Founder of currency exchange platform Bidwedge, Shon Alam, said: “This is great news for the millions of Brits who have old euros and dollars lying around, in some cases, from holidays that took place a decade ago.

“Typically, travellers tend to hold on to their remaining foreign currency, as it generally isn’t worth converting smaller sums of money due to poor exchange rates.

“As the pound has hit a six-week low, now may be the perfect time for people to exchange their remaining euros and dollars.”

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Alam added: “Taking advantage of this situation to exchange the foreign currency that has been lying at the bottom of the drawer for years, means that you could get more pounds in return than you previously would have done.”

George Vessey, currency strategist at Western Union, also shared his comment on today’s exchange rate.

“Sterling continues to trade in a volatile manner amidst increasing nervousness about a no-deal Brexit,” he said this morning.

“GBP/USD is currently trading almost two cents off its high on Friday and GBP/EUR has broken south of its ascending trend channel.”

Vessey continued: “Meanwhile, UK PM Boris Johnson travels to Brussels to try and break the deadlock and clinch a last-minute deal.

“Both the UK and EU have supposedly stepped up contingency planning for a no-deal scenario given the lack of tangible progress made on usual three sticking points.

“Fishing, level played field issues and governance have always posed significant challenges in the negotiating process and unless these topics are resolved, a trade deal before the end of the transition period in a few weeks appears highly unlikely.

“The long-term consequences of such a scenario are unknown, but sterling is forecast to weaken potentially up to 10 percent in the short term.”

The expert added: “If a deal is reached though, sterling could rally up to the three percent before year-end.”

If you’re unsure about rates, help is at hand.

Some currency specialists let customers sign up to daily market commentary and exchange rate updates.

What’s more, it may be worth speaking to a currency expert to understand how the pound is performing and get a sense of what might happen next.

Published at Tue, 08 Dec 2020 15:03:00 +0000