EU vote - the effect on the £

squerble

squerble

squerble

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Hey all,

I'm hoping to go to USA for the first time in September, but I'm at a loss at when I should realistically buy some dollars.

I guess if we vote leave, the GBP will likely devalue in an initial panic, so I'd get a poorer rate when buying USD after June? But if we vote remain, then I guess the £ will likely either stay the same or strengthen. Whilst I appreciate this is probably too much of an unknown, I'm really not sure when to buy. The £ is already low against the dollar (£1 = ~$1.44) and has been declining since about 2012 (~$1.71). When would you buy?

I'm also interested in this becoming a general discussion, but if mods tell me "no", then please stick to the question about buying dollars for my jollys in a few months. :D
 
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I'd buy as normal because a) no one could possibly tell you what is going to happen and b) it's going to make all of a few quid's difference and c) the fact you're buying in advance means you aren't being particularly efficient anyway.
 
squerble said:
Your advice on being more efficient?
Click to expand...

Don't buy currency before you go, just get a credit card with no foreign transaction fee like Halifax Clarity and use that.

You'll get a much better exchange rate than buying currency and you don't have to carry a pile of cash around.
 
Yup, VISA exchange rate is better than anything you'll get on the high street. Some even have fee-free cash withdrawals abroad. Just ensure it's a credit cards, most debit cards are expensive to use abroad.

If you need large sums then one of the Money Transfer companies.
 
Appropriate credit card and for pocket money and wallet cash, just whack a status up on facebook to ask if your mates got any dollars knocking about that they would like to exchange with you for pounds. People these days are going back and fourth from the states enough that you could easily fill in a bit of spending money by asking around.
 
If you do need to get cash get some of it now and rest later if you want to "protect" yourself a bit. As mentioned earlier unless it's a huge amount it will not make massive difference anyway.
 
If the £ devaluing 20% makes your holiday unnaffordable, then buy dollars now, as mentioned to "protect" yourself.

Otherwise just wait and see. No point trying to become an FX speculator.
 
The value of sterling against the USD (and other currencies) has devalued recently over the uncertainty regarding the referendum result - the currency markets have decided a Brexit is negative for Sterling.

Therefore:

a) If we vote to leave, Sterling will continue to depreciate against the dollar
b) If we vote to stay, Sterling will retrace some of the losses it's made of late

It's unlikely that there is any real point buying a load now - the time to do that was back in January/February when the referendum was announced.

The real answer is you shouldn't buy any dollars and should instead take the correct fee free credit card with you and use that :D
 
more like if we vote leave it will immediately depreciate (or in fact will start to as the first exit polls come in if they show that brexit is likely)

though longer term after that isn't clear at all
 
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