A Q & A on The Euro Exchange Rate Crisis And Your Holiday Cash – Part 1 !

July 23rd, 2012

It’s a tempestuous time for the euro exchange rate. There is still no conclusion to the Greek elections and France has a new President – uncertain times lie ahead. One good thing for British holiday makers is that the best exchange rate pound for euros has strengthened, great news for the summer, provided of course it stays that way.

Here are some useful questions and answers on the best way to manage holiday finances during this period of instability within Europe.

Q. I’m slightly nervous about the situation in Greece, I booked my Greek holiday last year and always take an amount of euros and my credit card. What if Greece withdraws from the euro either before I go or when I’m there?

A. If you were to buy euros now you would get the best exchange rate since 2008 (however it could still improve in favour of the pound). There are two precautionary steps you should take as a result of the uncertainty.

It would be a good idea to add an additional €100 or so to your holiday spending allowance. Often people take a debit or credit card for emergencies, however if Greece was suddenly to leave the euro while you’re holidaying, electronic banking would likely be frozen for up to a week, maybe even more, so you could end up stuck!

Also it would be a good idea to make sure you exchange €5, €10 and €20 euro notes because if Greece does suddenly leave the euro when you are out there, the interim currency would be the euro with an overprinted delta symbol (standing for drachma). The Greek euro exchange rate value would likely fall by as much as 40 per cent. Tourists would be required to pay in euros but would be given change in the new currency. So for example, if you paid for a meal in euros and it cost €15, you paid with a €50 note, and you receive change in Greek currency, you would only get €20 change – this is why carrying low denomination notes can not only be handy but could save you a small fortune.

Q. What about if Greece leaves the euro before my trip but I have already pre-bought my euros?

A. The euro itself remains a strong currency and competitive money exchanges will be all over the place in Greece, for you to exchange your euros to the new Greek currency – just make sure you do it in small and modest amounts as it won’t be worth anything when you exchange it back.

Q. How will the situation affect Portugal/Spain/Italy/Cyprus?

A. To be on the safe side treat these countries with the same precautionary measures that you would treat Greece. For the best rates – Best Exchange Rates UK will ensure you get the most out of your money when it comes to visiting Europe.