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More Value for Holiday Money with the Euro Exchange Rate
People may have another economic problem to complain about after the eurozone have gone through instability, which has resulted to the low value of Euro against pound; a level that has not been witnessed for more than 3 years. This economic state can pose a problem to those who buy British pounds since it means exchanging more euros.
Due to the uncertainty brought about by the elections in France and Greece recently, holiday makers and investors ended up getting €1.20-£1. This was €52 more from the previous year when exchanging for £500.
Caxton FX currency analyst Richard Driver believes that British pound will be stronger than euro. Sterling is set to gain momentum from its stable status and eurozone’s worse instability and can realistically be seen achieving the mark of 1.30 euro by autumn.
Even though the eurozone is bleak, it appears that going to a Post Office with some amount of sterling and receiving the same amount in other currency is over. It is not just in eurozone that the value of pound gained strength; if you travel to Brazil and buy Brazilian money your pound can also go further and the same can happen when you visit other countries like Czechoslovakia and South Africa.
What can you say about this? Do you think it is a good move to buy Euro now before its rate shoots up against the British pound or is € 1.20 fine? An important factor to be considered is if the British government will resume printing money, which will lower the value of pound and will affect the British tourists. If the strength of pound rises again, will you still be able to get hold of the all-inclusive holidays if your money is worth more in local restaurants and bars or do you think the local bar and restaurant owners will increase their prices?
If you plan to visit Greece during the summer, putting the country’s economic status into consideration might be beneficial as they can come off of euro. If this is the situation that you are into, you might probably receive inclination on the possibility of such situation happening again and the transition is likely staggered. But bringing extra money might be better in case banking system goes through some changes while it came back to Drachma. If such thing occurs, electronic transfers can be affected however cash economy will remain unaffected while you are on vacation. It might be nicer to just relax and enjoy another drink.