MSE News: Should you buy euros now?

MikeKBRFX

It could make for quite an interesting scenario if Greece does exit the Euro. On one hand it would make waves within the market, and raise a question over the Euro-zone as a whole, in terms of strength, not forgetting the quandry of how to regain the monies owed by the nation - BUT on the other hand, as the old saying goes ''you are only as strong as your weakest link''; if some of the periphery nations (Greece, Spain, Portugal) were to leave the Euro-zone, in time it may see a stronger union left of nations that aren't crippled with huge debt.

In all honesty though, my own view is that Germany will be placing fierce pressure on Greece to stay within the union and work towards fulfilling it's financial obligations through increased austerity measures. However, this current status quo will not help the currency, and it would not surprise me to see it north of 1.23, maybe upwards of 1.25 in the next few weeks. Considering where the rate was earlier in the year, now is not the worst time to be buying.

As someone pointed out in a earlier post though, 2 cents difference (1.25 to 1.23) on £500 worth of Euro, is only just over £8 equivalent, so unless there are HUGE swings, the sums on holiday money aren't exactly life-changing.

redarmy1

does anyone think it would be better just to take cash and exchange it in the local bureau exchanges i always seemed to get a better rate in the past(i am talking about spain)

liamod

redarmy1 wrote: »

does anyone think it would be better just to take cash and exchange it in the local bureau exchanges i always seemed to get a better rate in the past(i am talking about spain)

This is probably not the best solution, the rate that you would achieve is not going to be as good as you would get through online currency brokers and they will most probably also charge you commission, at the moment if you get offered lower than 1.21 then you should not purchase them

Tarry

I am thinking of getting £100 worth of euros as I'm off to Ireland later this year?

shammyjack

Tarry wrote: »

I am thinking of getting £100 worth of euros as I'm off to Ireland later this year?

That should be enough for a couple of pints of Guinness !

liamod

Tarry wrote: »

I am thinking of getting £100 worth of euros as I'm off to Ireland later this year?

With that volume there really isn't going to much effect on what you get from the rates you could be looking between 1.15 and 1.32 in the summer and that would be a maximim loss to you of €17 which is not huge amounts of money

redarmy1

just found out that local exchanges in benalmadena are giving 1.22 and no commission

Porcupine

One point that was made elsewhere was that if a country is in the middle of a currency transition (eg Euro to drachma) it might cause trouble for the ATM network (if there aren't enough drachma notes to go round, what to load into the machines?). Ordinarily taking a good card and withdrawing from ATMs might be the way to get a decent rate, but you may wish to take a bit more cash and take the exchange rate hit by exchanging locally. Maybe pay as much by (good) card as you can so Visa or Mastercard will sort out the exchanging (bearing in mind that many places don't quite do cards as widespread as we do).

DilbertJones

Trying to decide what to do with my euros for my holiday June 26th,

I have a Halifax Clarity card that I was intending to use for meals out and a bit of shopping (We are on all inclusive) and exchange £300 to euros for general spends.

Is a cash purchase (pre-booked) in the UK the best option? Or can I use the clarity card to purchase euros in the UK?

WelshSun

robodan wrote: »

Trying to decide what to do with my euros for my holiday June 26th,

I have a Halifax Clarity card that I was intending to use for meals out and a bit of shopping (We are on all inclusive) and exchange £300 to euros for general spends.

Is a cash purchase (pre-booked) in the UK the best option? Or can I use the clarity card to purchase euros in the UK?

It would work out cheapest to take £300 worth of Euros in the airport wherever you go with the Halifax Clairty. The currency change will happen over the weekend if it ever did happen due to logistical reasons, so the 26th wouldn't affect you.
Just after you arrive at the airport in your destination take the money straight out.

If you really want to get it in the UK pre-booked is best. Don't use the Post Office as they offer the worst exchange rate.
Use this calculator to find the best- http://travelmoney.moneysavingexpert.com