Euro (€) Currency Thread

dzug1

If you buy euros here you will in some way or other be charged for it - usually by a loading on the exchange rate of typically 5%, sometimes a bit less.

If you get euros in Europe with your Nationwide card the charge is 0%.

The base exchange rate is the same in either event.

The only thing to consider is whether the exchange rate will move sufficiently against you to cancel out the saving - a bit of an imponderable.

emweaver

ok this may sound thick lol, but whats the exchange rate atm? post office told me its dropping every day?

**woody123**

post office is currently 1.1896

emweaver

if im right the post office is lower?

**woody123**

thats the post office online price.

if you go in person it may be lower

emweaver

im getting confused i thought the post office offered less than the exchange rate?

benjus

emweaver wrote: »

im getting confused i thought the post office offered less than the exchange rate?

What do you mean by that statement?

The mid-market rate (currently 1GBP = 1.229 EUR) is the exchange rate that is quoted on the international markets.

The rate at which a bureau de change sells EUR (known as the bid price) will always be lower than the mid-market rate. The Post Office's online rate tends to be about 3% lower than the mid-market rate, while the Post Office in-branch rate tends to be about 6% lower than the mid-market rate.

The rate at which a bureau de change buys EUR (i.e. the rate you get when changing your leftover holiday money back into pounds - known as the ask price) will always be higher than the mid-market rate. The Post Office in-branch rate tends to be about 10% higher than the mid-market rate.

The difference between the bid and ask prices (known as the bid-ask spread) represents the amount of profit the bureau de change is making.

So a "good" rate is closer to the mid-market rate than a "bad" rate. The Post Office rate quoted above (1.1896) is about 3.3% lower than the current mid-market rate. The most competitive bureaux de change tend to be about 2% lower than the mid-market rate. Using a Nationwide debit card to withdraw cash abroad gives you a rate that is virtually identical to the mid-market rate (at least for major currencies).

In summary: PO branch = bad, PO online = OK, best buy BdC = good, Nationwide card = best.

emweaver

thanks, thats what i was asking if id be better off using my nationwide card as i wasnt sure if they used the same sort of rate at the market rate or if they reduce it like the post office do. I didnt get my point across very well as its been a long week so am very tired and not quite functioning right lol

emweaver

post office is now 1.1936 so maybe the rate is oin the increase?

jammin_2

emweaver wrote: »

post office is now 1.1936 so maybe the rate is oin the increase?

Yes. Yesterday the pound got slightly stronger against the Euro. Only slightly though.

http://www.x-rates.com/d/EUR/GBP/graph120.html