Should I cash in my Euros?

NotVeryTechie

Hi there

I hope I can get some input from you guys. I went to Europe last year and overbudgeted quite a bit. I have some cash Euros and also some on a post office travel wallet card.

When I got back from my trip last year I discovered that cashing in the Euros would mean losing quite a bit on the exchange rate as the pound was very strong then.

As the pound is dropping now I don't know whether to:
a) cash in the Euros now
b) wait a bit longer
c) hang on to the Euros for the next time I decide to travel.

I think the rate I got the Euros at was in the region of 0.24 (I got 2478 Euros for 2000 Pounds).

At the moment the money is just sitting in my drawer and the travel wallet is ok for a few years, so I could just leave it. But not sure what to do about this.

Any advice would be appreciated!

Alias_Omega

Your rate was 1.239.

I've seen the Euro go from 1.40 to 1.07...

NotVeryTechie

Thanks so much Alias_Omega. I am going to see if I can find a 'maths for adult dummies' online course!

zagfles

Leave them until either you travel again, or a friend/relative needs them for a trip when you can sell them at the interbank rate, saving you both loads in commission.

Don't try to predict currency movements, if you're capable of that then you need never worry about money again as you can make a fortune in currency trading

Cornucopia

Because the Pound is weaker, you have already made money on them.

Your original £2000 became 2478 Euros ( not accounting for fees).

If you changed it back today, you would get £2136 (again w/o fees).

I would wait and see what happens. If the pound starts strengthening and you are not going abroad soon, you may want to think about changing them back.

It's highly unlikely that the pound will ever go outside the range 1.00 to 1.50 Euros, so you could work out the maximum potential loss and weigh that up against the fees for exchanging.

NotVeryTechie

Thanks guys, good advice. I will find out what the fees are and then decide if it is worth it. I could just keep the Euros and use them the next time I travel. I was a little concerned that the money is not earning any interest or doing anything where it is now, but I guess that when I travel again I am actually going to be saving on the fees and the exchange rate, so that makes up for the money not 'working' at the moment.

Thinking :think:

rochja

Quite a few shops in London and around the country accept Euros though it is hard to predict the exchange rate you will get. As the money is not working for you anyway maybe you could use the Euros to purchase a luxury treat?

Doshwaster

Depends on a lot of factors including whether you actually need the money now and if you are likely to travel to Euroland in the next year.

If you change the money back and then buy Euros again in a few months time then you be paying the conversion charges twice. Personally, as long as you can live without the money then just keep in a drawer with your passport and then forget about it. Then when you do need to travel you'll find some unexpected money to spend!