Your money will go much further in Europe this summer
The Eurozone is in turmoil, Spain has had to offer a bailout loan to its fourth largest bank. In Italy police have raided one of their largest banks over alleged insider trading and Greece has failed to form a government for the third day running. All this has sent the Euro spiralling down, which is good news for our medical travel insurance customers holidaying in the Eurozone this summer as the Pound (GBP) is now at a 3 year high against the Euro.
Despite the UK being in what many are calling a double dip recession, it is still seen as a safer bet than other economies, which is why we are getting more for the GBP abroad. The tourist rate for the Euro is currently €1.20 for every GBP. Therefore if you change up £500 you will now receive an extra €52 of holiday cash, the last time it was this high was November 2008.
It’s not just the Euro that’s weak against the GBP; the American Dollar has also been falling against the GBP since the beginning of the year, a GBP will now buy you $1.60. Although the GBP has been much stronger against these currencies in the past, this latest gain will help to make holiday money go further, especially important as family incomes are being pushed hard.
For our travel insurance with medical conditions customers not going away until later in the year, we suggest you keep a close eye on the rates, some commentators are suggesting that the GBP could get even stronger, giving you even more holiday spending money.