Considering the Pound has gone from being worth $2 to $1.63 now in less than a year, I cant help thinking Im now going to get so little for my money it might be worth putting off my travel plans for a few years when hopefully I can get more for my money again. I've realised that If I would have bought dollars with 8k 8 months ago at $2, and sold them now I would have got back £9815 making £1815. And I remember the economists on Radio 4 predicting this a long while back. I'm kicking myself now. I'm only 25 though and havent been through any recessions to know any better.
My original plans were to go to South East Asia for two months Aus for two months and New Zealand for a month. I wanted to do my Padi course, Surf in Australia. Do all the adrenalin stuff and generally be merry and happy rather than miserable at my desk.
Due to me awaiting an answer at the end of November as to where I will steer my career I planned to book last minute. I.e December and to travel in March-August. I had budgetted around 2k for flights 2k for SEA 2.5k for Aus and 1.5k for NZ. But that literally is everything I have and it would be more sensible for me spend a little less so Im not broke when I get back. Would I be silly to travel now and get so much less for my money than if I would have gone after graduating a couple of years ago?
Considering the Pound has gone from being worth $2 to $1.63 now in less than a year
Why are you worrying about the American dollar when you're not going to the USA?
The Australian dollar has been hit even harder, and the New Zealand dollar has lost a bit in value, too. Where three months ago you'd get just above $2 AUD for 1 pound, now you're getting just under $2.50 AUD.
Basically - as long as you're not going to the USA - there's never been a better time to go and travel!
[ Edit: Edited on Oct 22, 2008, at 7:24 AM by Sander ]
Sander is right, pounds/euros versus Ozzie dollars are great.
I 'lost' serious amounts of money though regarding a couple of near future trips and these are not to the USA. The East Caribbean dollar has a fixed rate of 2.7 to the USD. And I needed to pay another trip partly in USD. Bummer big time, first time confronted with USD payment, and it goes down from 1.6 to the euro to less than 1.3 I hate it! Oh well, the petrol price is going down as well....so that makes up for it
The Japanse Yen is at it's lowest (that is yen for your pound/euro) in 4 years by the way. Didn't check other currencies though, but I am sure there are more big differences with others.
The Icelandic Kroner might be worth more (twice as much kroner for a euro than a year ago or so), prices are going up seriously as well, so twice as much might be more like 1,5 or less!
But in the end I always say to myself: if you can afford to travel and spend thousands of euros/pounds/dollars or whatever currency, don't care too much about exchange rates..
Thanks for the great advice! You two have set my mind at ease. I should have looked at the other currencies. I was working on the assumption that the weakened pound would be down against the other currencies too.
The economists seem to be predicting further falls in value for the pound. Do you think it is worth me buying my spending money for Australia and New Zealand now? I dont suppose there would be anyway to store it? The usual method would be to keep my money in an English bank and then withdraw it as I need it I think.
The economists seem to be predicting further falls in value for the pound. Do you think it is worth me buying my spending money for Australia and New Zealand now?
No. If that further drop was anywhere near certain, the exchange rate would already be reflecting it (since all the institutions which can move the volumes of money needed to change the rate would be doing so to prevent losses on their end). Since it isn't, it's as likely that the value of the pound will go up as down from here. Same for the Australian dollar. Just don't worry about it and see what is when it is. Rejoice if it works in your benefit, live frugally when it doesn't. That's really the only sane thing you can do.
If you do want to gamble with your money, stocks are a much more manageable way to do so than trying to benefit from currency fluctuations; at least for a consumer the overhead with those is manageable, and there sometimes is a relation between what a single entity (a company) does and what the stock does (unlike the currency markets, where you'd need to keep track of the doings of entire countries).
Yeah, like Sander and to add: also note that when buying cash at home you pay a higher rate. For example when the official rate is 2 oz dollar for 1 GBP, you only get 1.8 when buying dollars and if you want to sell them again you only get 1 GBP for 2.2 oz dollar. If you withdraw money in Oz or pay by credit card, you get the official rate.
Cheers and have fun preparing your trip, that's the most important one
Do not worry about the exchange rates, most countries have their share of trouble. YOu could visit South East Asia like Malaysia, Thailand and others. You may travel to Australia or New Zealand from there which will save you so money on flight ticket or get a package tour to enable you to visit place that interests you. Attach please find some exchange rates, it may give you some perspective of destination that may interest you.
click on values to see graphs 1 GBP in GBP
American Dollar 1.5845 0.631114
Australian Dollar 2.55772 0.390974
Brazilian Real 3.61979 0.276259
Canadian Dollar 2.01786 0.495574
Chinese Yuan 10.8432 0.0922236
Danish Krone 9.33128 0.107166
Euro 1.25188 0.798801
Hong Kong Dollar 12.2838 0.0814078
Indian Rupee 79.1933 0.0126273
Japanese Yen 149.244 0.00670044
Malaysian Ringgit 5.6733 0.176264
Mexican Peso 21.1078 0.047376
New Zealand Dollar 2.84113 0.351972
Norwegian Kroner 10.9034 0.0917144
Singapore Dollar 2.38325 0.419596
South African Rand 17.271 0.0579004
South Korean Won 2252.08 0.000444034
Sri Lanka Rupee 171.126 0.00584365
Swedish Krona 12.45 0.080321
Swiss Franc 1.84626 0.541636
Taiwan Dollar 53.0174 0.0188617
Thai Baht 54.8554 0.0182298
using values from Friday, October 24, 2008
The best country to travel in this recession time...is Malaysia ,Singapore,Thailland ,Vietnam ,Indonesia..save your money while travel here..enjoy their food ..hot and spicy..