Since the UK voted to leave the EU, the pound sterling has been trading at £1 for €1 at some UK airports.
On the eve of the Brexit vote on 23rd June, the pound sterling was trading on the Forex market for €1.30. Today (20th July), the rate has plummeted to just €1.19!
So what does this all mean?
In theory, it means a summer holiday budget of £1,000 should buy you €1,193. However, Brits travelling this summer are being offered rates as low as one Euro per pound at airports across the UK. Therefore in reality, your budget could get you as little as €1,041.
Those travelling from London Stanstead airport are being hit the hardest, with MoneyCorp exchange bureau offering only €1.04 per £1. Travelex at Manchester airport offers a similar rate of just €1.06.
Why are their rates so low?
Economic and political uncertainty following the Brexit vote certainly plays a role. However, as you can see from Bloomberg’s photo below, the pound sterling is still trading at £1 for €1.19 on the Forex market.
Whilst Forex services tend to advertise 0 per cent commission, the reality is their commission is hidden in their rates. The difference between the real exchange rate traded on the Forex market, and the rate provided at UK airports, is a massive 14%. Foreign exchange services effectively make up the exchange rate to make a profit.
How can I avoid getting ripped off?
Use Revolut, of course! 😉
By ditching the airport exchange bureau in favour of a RevolutCard, you could get an extra €152 this summer. That’s your flight to Barcelona for next year sorted!
Revolut offers the market rate - or rather, the rate you’ll find on Bloomberg! Top up your account with pounds for free, and we’ll automatically convert your balance when you use your RevolutCard abroad.
If you’re worried that the exchange rate will drop again over the summer, you can exchange between GBP, EUR and USD on the app now to lock in a rate. Keep an eye on the live market rates using our ‘Rates Checker’ in the ‘Exchange’ section of the app.
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Nearly 1.5M people have used Revolut to set up a current account in 60 seconds, spend and send money fee-free globally using the real exchange rate, and hold and exchange 25 currencies.