The impact of Brexit so far to the pound

Money November 17, 2016


Soft Brexit, hard Bexit… what do all the recent headlines mean for those of us planning a holiday soon? Here’s our short summary.

Firstly, hard Brexit, soft Brexit… what does it mean?

Well, a hard Brexit means Britain taking a more uncompromising approach to the negotiations. The UK would still want access to the single market but be more strict about freedom of movement. This might mean restrictions for UK travellers in Europe too.

A softer Brexit would be an attempt to retain access to the single market whilst offering freedom of movement to citizens of EU member states. This would be a bit like Norway which is not an EU member state but is liberal on free movement.

The impact of Brexit so far

Despite the economy as a whole performing better than expected, the pound has still taken a hit since June. In fact, the pound sunk to a 31-year low against the US dollar post-Brexit.

It has struggled against the Euro too. At the time of writing, £1 buys €1.164. Exactly one year ago, £1 bought €1.429. That’s a big slide. A 21.5% slide.

The pound has actually strengthened in recent days after Donald Trump hinted at improved trade relations between the US and the UK.

XE Currency Charts: GBP to EUR

XE Currency Charts: GBP to EUR

What should I do when the pound gets strong, exchange money?

We don’t have a crystal ball but swapping some of your money at a time of strength means you’ll not be too downcast if the rate improves or worsens before your trip away.

The volatility is such that one article, speech or report can affect the rate in an instant and that’s exactly what has been happening.

Whatever you do, never ever at the airport. They will always make a good profit on your exchange – regardless of the strength of the pound.

What's ahead of BrexitEU travel without a visa

It’s looking less likely that British citizens will need visas to travel within the EU on holiday.

We will probably have to wait in the none-EU queue at the airport though which will take longer and involve greater scrutiny of travel docs. Annoying, but nothing more.

What does that mean for travellers?

The good news – for the next 2 years most things won’t change. There’s no need for a new passport, customs checks will be the same and the cost of flights is unlikely to change dramatically (although it may after Brexit occurs).

The bad news – the weaker pound will mean that you get less money to spend on holiday. There is no getting around that unfortunately. If you already own a WeSwap account and have money left in euros, it could be a good opportunity to swap it back and to make the most of your pounds.

How can WeSwap help?

Some airport bureaux are offering less than 1 euro for a pound at the moment. From WeSwap you get €1.16 from £1, that includes our small commission based on a 7-day swap.

If you already own a WeSwap account and have money left in euros, it could be a good opportunity to swap it back and to make the most of your pounds.

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With the pound weaker, getting a better rate is as important as ever. Here is how WeSwap compares to the three other main sources of foreign currency.

Hopefully, this answers some questions about how Brexit will affect your winter holidays. If you have any more questions, please write in the Comments section below and we’ll get back to you.

Words by WeSwap, the clever new way to get travel money that’s up to 10 times cheaper than banks, bureaux or airports.


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