Will the Pound reach £1 = €1?

28 July, 2011


Newspaper reports over the weekend show airport Bureaux de Change offering Euro exchange rates below €1 for £1.

Of course, airports are usually the worst place to buy your currency, and reputable currency companies will currently offer you up to 10% more than this for overseas money transfers above £5,000.

But is the commercial rate heading down to parity too?

The Government has alreay said it will not intervene to prop up the Pound, and although there is not a full scale “run” on the currency yet, perhaps we are not too far off.

With worsening unemployment, falling interest rates, economic crises everywhere you look, and consumer confidence falling at record levels, the head of Barclays has even suggested we are only at the very beginning of the problems – not near the end.

The most important thing if you need to exchange foreign currency in relatively large amounts, is to make sure you speak to an experienced foreign currency broker and don’t just assume that exchange rates will improve – it could be an expensive mistake.