Budget and strength of the pound

jeaster1

Does anyone have any ideas about what the likely effects of the new budget will be on the £? If this new government is seen to be making cut backs and reduce the deficit and debt will the pound strengthen against the dollar?

richardw

How many dollars are you buying?
What percentage change in the exchange rate would affect enjoyment of your holiday?

jeaster1

I am not buying dollars but am purchasing Philippine Pesos. I believe that the £/$ has a large effect on this rate. We will be going away for almost a month so will be taking at least £400/£500. I don't know what percentage change would effect my enjoyment but it's always nice to feel that you have a bit extra and looking at the way the £ has been treated recently we will have far less than on previous visits.

richardw

jeaster1 wrote: »

it's always nice to feel that you have a bit extra and looking at the way the £ has been treated recently we will have far less than on previous visits.

Yes, it is nice, but no point worrying about something that may not really have too much affect on the holiday.

Teahfc

Play the odds, but half now while you know the rate and then buy the balance before you go, to be fair hardly likely to fluctuate to the degree that it would have a huge affect on your transaction

Have a great holiday anyway

jeaster1

You've both made a good point, thanks.

Voyager2002

The most important consideration is WHERE you buy your pesos. If you buy them in Britain then you will almost certainly get a poor rate, and lose more for that reason than because of the budget. If you buy dollars in the UK and then exchange for pesos you will face the costs of changing money twice.

The solution is to open a Nationwide account and use ATMs in Manila to withdraw cash once you are there, or to use one of the few filipino money-changers who give a decent rate for pounds sterling.