The Week UK: Brits stockpiling euros ahead of Brexit

The Week UK

UK News
Brits stockpiling euros ahead of Brexit
Feb 19, 2019
Travellers fear crashing out with no deal could cause the pound to tank

          whatsapp                     
     

Daniel Sorabji/AFP/Getty Images

Britons appear to be stockpiling euros ahead of the UK’s departure from the EU, amid fears a no-deal Brexit could cause sterling to plummet.
See related
What the Brexit vote could mean for sterling
What is the price of gold and how will Brexit affect it?
Labour ‘war-gaming’ for run on pound if Jeremy Corbyn becomes PM

Post Office Travel Money, which handles a quarter of all UK foreign exchange transactions, said sales of euros were up between 3-5% on the previous year for November, December and January.

“While the numbers show British appetites for holidays on the continent have not been diminished by Brexit,” The Independent says “they could also illustrate fears the pound could slump if the UK crashes out without a deal on 29 March”.

Sterling fell by more than 10% in the days following the 2016 EU referendum, and there is concern a similar slide could be precipitated in the event of a no-deal Brexit.

“With the pound serving as one of the main barometers for investor sentiment on Brexit and investors facing such the binary outcome of either a deal or a chaotic no-deal scenarios, markets are bracing for a large swing in both directions,” says Bloomberg.
Advertisement

While the odds still favour Theresa May getting a deal through Parliament “pound trader are losing faith” in the prime minister, says the business news site.

The Daily Express says “no experts can predict exactly what will happen to the British currency as Brexit quickly approaches, and it’s important to remember there are other factors that affect the pound’s value”.

Ian Strafford-Taylor, CEO of currency expert FairFX told the tabloid: “It’s possible that the pound will strengthen if the UK and EU can agree a divorce deal, but it all depends on the deal itself.”

“If the market feels the deal isn’t economically favourable to the UK, then we could even see the pound lose ground” he added.

Yet it is not all bad news for holidaymakers.

While the pound remains well below its pre-June 2016 levels against the euro, beyond the eurozone sterling has performed better.

According to Post Office Travel Money it has strengthened against almost half the best-selling currencies, including the Turkish Lire and Icelandic Krona.

By contrast, £500 in US dollars today buys almost £50 less than it did in spring last year.

Currency volatility can make medium-term planning tricky, but it could still impact where people choose to spend their holidays.

“Our research has shown that over two-thirds of holidaymakers bust their budget by nearly £100 on their last trip abroad,” says Post Office Travel Money expert Andrew Brown, so “choosing a destination where sterling is performing best and where the cost of meals, drinks and other tourist staples is low could help to prevent that.”

Read more: UK News
currency
Euro
Brexit
Pound
Sterling
Travel
You are here:

    HomeBrits stockpiling euros ahead of Brexit

Related Articles

    The Independent Group
    One-Minute Read
    Corbyn warned more MPs could quit
    One-Minute Read
    Brits stockpiling euros ahead of Brexit
    One-Minute Read
    Should shorter prison sentences be scrapped?
    Chuka Umunna
    In Depth
    Who are the Independent Group and what do they stand for?
    One-Minute Read
    How long does it take to renew a passport?
    Will Labour's next leader come from the shadow cabinet or be an outsider?
    One-Minute Read
    Labour leadership contenders: favourites to succeed Corbyn
    The Independent Group
    In Depth
    Why seven MPs are quitting Labour
    Passengers wait in a busy UK airport
    One-Minute Read
    Flybmi collapse: which other airlines are in the red?

FREE UK delivery
on all orders over £20
BROWSE
Portfolio

The experts' guide to good living

    Shanghai Wonderland: a glamorous Bond villain’s lair
    Salkantay and Lares: the slow road to Machu Picchu
    Where to enjoy the best afternoon teas in London

Read more
Popular

    Oscar predictions 2019: who will win?
    Film
    What is the Momo suicide challenge and how dangerous is it?
    World News
    Can the Brexit Party succeed?
    UK News
    Rare 50p coins: how to tell if you have a valuable one
    UK News
    Google Pixel 4 rumours: specs, design and release date
    Technology

Trending Topics

    Donald Trump
    Brexit
    House prices
    Cultural appropriation
    Kensington Palace
    Islamic State

Daily Briefing

Ten things you need to know today

    More MPs expected to join Labour breakaway group
    Honda to close Swindon plant in 2022
    States sue Trump over emergency declaration

Read more
Our Latest Offers, Competitions and Events

    Our latest offers and competitions
    Latest offers and events
    Outstanding wines that won't break the bank

FIND OUT MORE
Back to top

    FacebookTwitter

    News
    Sport
    Business
    Technology
    Cars
    Money
    Portfolio
    Podcast
    Subscriptions
    Offers

    The Week US
    Email newsletter
    Privacy Policy
    Cookie Policy
    RSS
    Sitemap
    Contact us
    Authors
    About us
    Privacy Preferences

© Copyright The Week Ltd which is a subsidiary of Dennis Publishing Limited.
The Week incorporates The First Post. The Week™ and The First Post™ are trademarks of Felix Dennis.

    Felix DennisJobsMedia InformationSubscription EnquiresBooksAppsYour Online Choices

Sign up for our daily newsletter
Newsletter