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What Brexit Means For Your Travel Money – In Plain English

Brexit update Tuesday 28/06

We’ve waived our 7-day swap fee for today and tomorrow!

There’s still lots of uncertainty around what Brexit means for our travel money this summer.

While we can’t predict exactly what’s going to happen – nobody can – we can do our bit to help make sure we all get the fairest possible rate for our holidays, whatever the market.

So today we’ve removed our seven-day swap fee for all WeSwappers, from now until midnight tomorrow.

It’s just a little something to help ease your travel money worries. Now you can get back to choosing which local restaurants you want to eat at, or how many hats to pack!

Brexit update Monday 27/06

As many predicted, the vote on Friday hit the pound hard and that has continued into Monday. At the time of writing £1 = €1.19 and £1 = 1.32.

As we’ve said -nobody can predict what’s going to happen over the next couple of months.

One currency exchange top, as suggested by travel editor Simon Calder in the Independent, is to swap half of your money now and the other half a few days before you travel. This way you’re not putting all your eggs so to speak but you could still benefit from a late rally. Similarly, this method half-defends you against a further drop.

Keep your eyes peeled for further updates.

Thank you.

Brexit update as of Friday 24/06.

As before the referendum, if not more than before – you guys are wondering what to do about your travel money. Well, this is how we see it.

This morning saw the pound down 6.4% to 1.2222 against the Euro. GBP was down even more against the dollar – as much as 6% – possibly in part due to uncertainty over the Euro itself. But the question is, what lies ahead. Especially in the short term?

The truth is that as we said before the referendum, nobody really knows what lies ahead. And uncertainty in the markets almost always leads to volatility in the rates.

So, as we advised pre-vote, WeSwappers looking to avoid volatility should use an instant swap and take the rate on offer at that time. That said, opting for a seven-day swap may see your rate improve. It may not.

We’re still committed to getting everyone the fairest rates – which means taking them from XE.com and then applying a flat fee which will remain the same as before.

We only take that flat rate so we can continue to do what we’re doing and we won’t be hiking up commissions to help cover ourselves in any way.

What we are doing together with WeSwappers is something special; we’re helping to grow a community of travellers for travellers – that’s why we’re known as the People’s Currency Exchange.

We’ve also had a recent brand refresh which you guys seem to have liked so far. If you haven’t seen it yet check it out and let us know what you think!

Thanks for listening, would love to hear any questions bellow in the Comments box.

The WeSwap Team

 

With the news brimming with Brexit, you might well be wondering amongst all the key issues what this means for your currency. Is now a good time to exchange, or not?

Well here’s the rub – nobody really knows what’s going to happen. In fact, the only thing that everyone seems to agree on is that Brexit is a really neat play on words.

But what we can do is translate all the economic jargon, available information and trends to tell you what’s going on right now – and how we see it all.

So here it is, in plain English.

Right now, rates are all over the place.

If you’re into currency watching, it’s a rollercoaster. Rates fluctuate all the time, but build up to Brexit has made them really volatile – in November, £100 got you €142. In April that dropped to €124, by late May it had risen again to €131, and yesterday it was €127.

If rates could ever be described as wacky, it’s now. £-€ rates over the last few months via xe.com...

What we have seen for sure is that the rates are significantly affected by high profile poll results. If the polls say we stay, the rates improve. If they say that we might leave, the rates drop again.

How long is this turbulence going to last? No one’s sure, but signs are that it’ll carry on at least until after the Brexit vote on the 23rd June.

So, should we wait until after the vote to get our travel money?

This is where it gets complicated… and a little bit speculative. How strong the pound will be after the vote is likely to depend on which way we go.

Some economists think a Brexit would mean that the pound loses up to 20% of its current value vs major currencies.

That would mean that the pound would become roughly equal to – “come back to parity with” – the euro. I.e. £100 would only buy you €100. Something the Guardian reported back in February.

On the other hand, if Britons vote to stay in the EU, some analysts say the pound could rise by 5-10% from where we are today.

What makes people think the pound will lose value if we Brexit?

The main reason is that some analysts believe leaving the EU will reduce money coming into the UK from overseas, which may put pressure on the UK’s budget and debt, potentially provoking a recession.

Does everyone agree that Brexit would be bad for the pound?

In short, no. While it’s certainly easier to find analysts who believe that Brexit is a bad thing for the pound, it’s not a done deal.

Barclays Bank, for example, suggests that if EU politics were in a bad place after Brexit, the pound could then be seen as a safe-haven and therefore rise in value.

Glad that’s cleared up. So what should we do now?

Over the next couple of weeks, the rates are likely to stay volatile, so keep an eye on the news and the rates. Any poll or expert opinion could see the pound rally – but also, any poll implying a Brexit may have the opposite effect.

If you decide to wait until after the vote, then the current consensus seems to be that we’ll either see a less likely-but-sharp drop in value if we Brexit, or a perhaps more- likely-but-smaller increase in value if the Remain side win.

Basically this:

 

But that’s the thing with speculation – no-one really knows. Of course, if all this volatility is making your head spin, you could simply decide to change your money now and get on with enjoying your holiday.

 

Words by WeSwap, the clever new way to get travel money that’s up to 10 times cheaper than banks, bureaux or airports. Get five friends signed up, get free currency exchange for life.

   

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