It seems that something always comes between you and the relaxing vacation you’ve been fantasising about for the past several months. Whether it’s work, family commitments, or whatever other obligations may arise, luck is rarely on the side of the busy working adult when it comes to planning their next summer holiday. This summer, however, poses its own series of unique challenges, most notably in the form of the Brexit vote, a referendum which, regardless of its outcome, is destined to wreak havoc on one of the most important institu-tions for travellers when it comes to preparing for a pending vacation – currency exchange.
The topic of currency exchange has gained a new degree of relevance as the outcome of the Brexit vote becomes increasingly uncertain. Although markets did tremble slightly as the “Leave” campaign began ramping up their efforts to woo would-be voters, the full effect of their actions is now being felt not only politically but fiscally as well. The pound has plummet-ed in recent weeks over fears that Brexit will result in a massive devaluation of the domestic currency. Although it is obvious that a host of other international parameters can also be con-sidered key influencers dictating the value of the pound, Brexit has loomed largest over these examinations.
So, as a would-be traveler, the question you are most likely facing is this: is it better to ex-change currency now, embracing a lower exchange rate while avoiding the potential of a massively diminished currency following the Brexit vote, or should you hold out in hopes of a strong British pound (due most likely to a successful ‘Remain’ vote). In situations such as these, it is, perhaps, best to listen to the experts. Goldman Sachs weighed in on the issue, stating, “A vote for the UK to exit from the EU is an event that would increase uncertainty, weigh on the UK outlook and raise concerns of foreign investors – potentially interrupting the flow of capital to the UK, sending the pound much lower.”
Of course, so much of this evaluation is based purely on speculation. To fully understand how summer travellers will be affected by Brexit, the simple truth is this – we have to wait for the final results of the voting. There has been an unprecedented level of speculation, postur-ing, and theorising regarding the consequences of the pending vote, but these dialogues are, on the most fundamental level – theories. Given the fact that there is no precedent for a Brex-it-esque scenario, it is virtually impossible to state with confidence what the concrete logistics of such an outcome.
That being said, it seems reasonable to assume that, if Brexit did occur, summer travellers may have far more on their minds than simply where they will be travelling during their holi-day or what their preferred currency exchange rate may be. Experts are theorising that a successful Brexit push could initiate a currency free fall, the likes of which have not been seen for decades. With that in mind, both summer travellers and workers alike may consider exchanging a reserve of currency simply so as to ensure that they are prepared for whatever events may unfold the evening of June 23rd. And, for those who are ready to embark upon their holiday in the days leading up to Brexit, consider it a worthwhile piece of advice to pay close attention to the daily shifts of the foreign exchange markets, as rates are likely to shift dramatically on a moment-by-moment basis during this tense period.