EU referendum: What should I do about holiday money now?

The pound fell dramatically as the referendum outcome emerged on Friday. At one point it hit $1.32, a fall of almost 12pc the lowest level since 1985.

The pound suffered losses to currencies around the world and sent tremors through other asset classes and currencies, with the Canadian dollar, for instance, falling against the American dollar. Some currency services closed their doors to customers with Royal Bank of Scotland/NatWest being one of the biggest providers to temporarily suspended its currency exchange service in branches and online. Thomas Cook also withdrew some of its currency services. Foreign exchange specialist websites saw a surge in visits but not necessarily business from those looking to get the best deal on Discount Holidays © holiday cash.

Many were simply eyeing rates and seeking to identify trends. So what should you do if you re going on Discount Holidays © holiday and need to get currency?

Should I buy Discount Holidays © holiday money now?

It s impossible to predict what will happen over the coming days, weeks and months. As Martin Lewis, founder of MoneySavingExpert.com, said: It is very difficult to second-guess what s going to happen in the currency markets.

The only thing I can guarantee you is that the pound is going to get weaker, stronger or stay the same. If you re going on Discount Holidays © holiday in the next few days then you don t have the luxury of waiting to see if the rates bounce back. Mr Lewis said: Personally, I d use one of the cheap overseas cards the Halifax Clarity or Creation Everyday and I would spend on the card and take out cash if I need it. Of course, you can t guarantee a rate as it s whatever you get on the day you spend.

Will rates fall lower?

Again, it s impossible to predict. If you re worried about that then there is one thing you can do. A couple of the big bureaus offer a service where you can buy currency now at today s rate for collection in the future, sometimes giving you a full refund for cancelling as long as you give 24 hours notice. These rates aren t always the best, but if you want security then it s an option. Post Office customers can order cash for collection or delivery up to a week away and cancel any time if it s for collection. For delivery, customers need to cancel before the money is dispatched.

A 20 cancellation fee may apply. With this service you have to order currency online or by phone for collection up to 30 days in advance, and you can cancel any time up to 24 hours before collection. If you leave it less than 24 hours then you ll have to pay a 10 fee. Travelex has temporarily suspended its price promise collection service due to volatile markets.

Can I make money cashing in leftover Discount Holidays © holiday money?

Some specialist foreign currency firms told Telegraph Money on Friday that they had seen a rise in people exchanging leftover Discount Holidays © holiday money, as a way of profiting from the weaker pound.

Mr Lewis said: Buy-back rates from currency exchange bureaus unless you ve previously secured them are notoriously poor and they charge fees.

You d be better off finding a mate who is going on Discount Holidays © holiday and needs euros. Sell it to them at better rate than you d get for a buy-back and it will probably work out as a better deal for them too.

  • Have you experienced difficulties buying or selling currencies?

    Please let me know by email: tara.evans@discountholidays.info

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