Yes. The pound dropped significantly in value compared to the Euro after the referendum result.
It dropped 16% against the Euro in the 4 months after the referendum! 6% of the fall happened the day of the result!
The Pound to Euro rate has sat around €1.10-€1.20 over the last few years.
Regarding the Pound recovering, the Pound to Euro rate was €1.30 before the referendum; the recovery of the Pound from 2021 and onwards will reflect whether the UK is better off or not having left the EU!
It is extremely easy to get an exchange rate on the internet nowadays from websites such as XE and FX Street however, not all of them are real rates.
The Pound to Euro rates that are shown are not actually available to customers!
These rates that you see are something called ‘interbank rates’ which mean that they are only available to banks themselves and large financial companies.
They are not available to customers or even large corporations who buy and sell currencies in the billion's regions!
Some of the companies that are showing these ‘fake rates’ use them to entice customers into their company!
There will be small disclaimers near these quotes saying something like “not available to customers” or “for informational purposes only”.
When you convert Pounds to Euros it is a good idea to get a genuine quote from a money transfer specialist or a bank!
This will avoid you coming across these ‘fake rates’ and ensuring that they rate you see is real.
In 1999, the GBP/EUR rate started at just above €1.40, for the first few years there was a lot of doubt and uncertainty about the Euro’s credibility, the Pound gained value against the Euro.
In the first year of the Euro’s launch the Pound value reached an all-time high of €1.752.
By 2003, the Euro became solidly established as a currency and the Pound value dropped down to €1.40.
Then from 2003-2007 the rate stayed around €1.40 and €1.50 which is rare as the rate does not normally stay around the same figure. In 2007/2008, during the global crisis the Pound dropped dramatically in value and the UK required the government's support as they provided £500 billion to stave off the British banking system crashing.
The Pound hit an all-time low of €1.02 in late 2008.
In 2013 to 2015, the Euro fell badly as debt problems arose with the ‘PIGS’ (Portugal, Greece, Spain, Italy).
Then came early 2016 and the Brexit referendum caused the Pound to sink rapidly, the day the referendum was announced the Pound fell by 6.02%!
Ever since Brexit the Pound has been fighting its way back up against the Euro.
To put it shortly, no.
Then again what forecast can you fully trust!
Its normal for people to want to know what the future is holding!
No one can predict the future accurately; we can only give it our best predictions! Normally, the people that are predicting the rate forecasts are just slightly changing the current ones.
There is yet to be an accurate way of predicting the exchange rate future!
The rates move way too much for someone to be able to precisely predict the future of them and if someone could predict them then I think that they would keep that information to themselves!
The exchange rates are especially important as they can either cost you a lot of money or save you a lot of money!
Even the tiniest movements within the exchange rate can make a huge difference financially!
Here is an example on how even the smallest change can cost you a lot of money:
You have brought a property in Spain for €160,000, in order to pay for it you will need to transfer your Pounds to Euros, the current rate is £1 to €1.15. The price in Pounds works out as £139,130, just before you pay for it some bad news comes out and the Pound drops to €1.13; the house you are buying is now going to cost you £141,592. That means that the little change that has happened is going to cost you £2,462!
Moves like this that are 1 to 2% can happen all the time and even daily!
Throughout weeks it is easy to see moves of 3,4,5% and now that could be a lot of money!
Therefore, it is a good idea to speak to someone experienced in this area (money transfer specialists) as they will be watching the rate constantly throughout the day!
Most people do not have the time or patience to be constantly monitoring the rates, due to this you could miss out on a great rate and lose a lot of money.
A money transfer specialist will monitor the rate for you and notify you if the rate moves in your favour, so you do not miss out!
Banks and online-only platforms will not offer this same service as it is not their expertise and you would not be their priority.
Regency FX are a UK based independent currency broker, specialising in high volume transfers.
We pride ourselves on our premium level of customer service, you will be allocated your own personal account manager whom you will have direct access to.
All funds transferred through Regency FX are made using client segregated accounts in accordance with the FCA (Financial Conduct Authority) guidelines.
The important thing is the comparison, online rates shown on Google and other search engines are not always accurate for the consumer.
They can often refer to the rates that banks exchange at rather than what is available to you, the customer.
Even if you are just looking for property at this stage it is worth getting in touch to discuss your options.
We can monitor the market on your behalf enabling you to budget more effectively.
As a first-class currency transfer service, here at Regency FX we endeavour to get the best available rate regardless of how much you are transacting.
Get a quote and see how we stack up.
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