If you’re heading abroad to Europe after Brexit, is it best to buy your Euros now or after 31 January 2020?
Here’s everything you need to know as the Brexit deadline looms.
Fluctuating exchange rate
The pound to euro exchange rate has fluctuated over the past few days, soaring to a year-to-date high on Wednesday 22 January, but then dropping back down on Thursday 23 January.
However, it’s now reported that the pound is continuing to hold its ground ahead of new data out on Friday (24 Jan).
Bank of England’s policy decision
Flash January Purchasing Managers’ Index (PMI) surveys released on Friday 24 January are expected to set the tone for the Bank of England’s policy decision next week.
Many people are watching and waiting to see if the exchange rate will fluctuate both after the recent election – named the ‘Boris Bounce’ – and after Brexit.
Current exchange rate
1 GBP equals 1.19 Euro according to foreign exchange company Xe.com, at the time of writing.
Will the exchange rate fall after Brexit?
It’s currently unknown if the exchange rate is set to rise or fall after Brexit.
Ian Strafford-Taylor, CEO of international money specialist Equals, told the Daily Express: “Today marks the one week countdown to Brexit and although the pound has made marginal gains against the euro compared to this time last week, there’s no guarantee these improvements will continue after the 31 January.
“This time next week we will be entering uncharted territory for the pound which puts it in a vulnerable position and makes it difficult to predict exactly what will happen.
“Whether the pound can recover or not will largely depend on the trade deals the UK strikes with other countries after leaving the UK next week.”
“As it stands, the pound is currently 9 percent lower against the euro compared to the day of the referendum back in June 2016 so there is a lot of room for improvement but there’s also a chance it could fall further again.”
How else will Brexit impact travel to Europe?
In regard to passports, valid passports can still be used but must be valid for the entire duration of your trip. You do not need to have six months left on your passport to travel to the EU.
In addition to this, UK travellers will not need a visa to travel to the EU after Brexit.
In regards to taking out travel insurance, ABTA advises that the best way to protect your holiday is to book a package deal.
In this case, it is then the responsibility of the travel company to make sure your holiday is provided and to offer an alternative, or a refund, if it cannot be delivered.
If you haven’t booked a package deal, it is advisable to check with your individual insurance provider about your cover ahead of your trip.