When it comes to exchange rates, the world’s political and economic events play a huge role in how far your money can go abroad. From elections to trade agreements, these big events can cause currencies to rise or fall—and that directly impacts your travel budget. Let’s take a look at the top five global events influencing exchange rates right now and how you can plan ahead to make the most of your holiday money.
Inflation has been a hot topic worldwide, with rising prices pushing central banks to adjust interest rates. Higher interest rates can strengthen a currency, while high inflation can weaken it. For example, countries like Turkey and Argentina are grappling with inflation, causing their currencies to dip, while others with more controlled inflation are holding steady.
How This Affects You: If inflation pushes a destination’s currency down, your Pound can go much further—a win for savvy travellers keeping an eye on rates.
Elections, especially in economic powerhouses like the US, can cause uncertainty in global markets. The outcome of the 2024 US election could lead to shifts in policies on trade, spending, and interest rates, impacting the US Dollar and other major currencies worldwide.
How This Affects You: If you’re heading to a destination that relies heavily on the Dollar, fluctuations could either cost you more or save you money, depending on timing.
While Brexit is in the rear-view mirror, trade agreements between the UK and EU continue to evolve. New deals or disagreements can shift confidence in both the Pound (GBP) and the Euro (EUR), leading to sudden changes in exchange rates.
How This Affects You: For UK travellers planning trips to Europe, monitoring GBP/EUR trends will help you decide when to exchange your money.
China’s post-pandemic recovery is another major player in global markets. As the world’s second-largest economy, its economic health impacts demand for global commodities and currencies. A strong recovery could strengthen the Chinese Yuan and influence other emerging market currencies.
How This Affects You: If you’re planning a trip to Asia, shifts in regional currencies could offer great opportunities for better exchange rates.
Oil prices don’t just affect the cost of filling up your car; they also impact oil-dependent economies. Countries whose economies rely on oil exports (like Saudi Arabia and Russia) see their currencies strengthen or weaken based on oil price movements.
How This Affects You: If you’re travelling to an oil-exporting country, changes in oil prices can impact how far your money goes locally.
The global events above show just how quickly exchange rates can change. But don’t worry—you can plan ahead to make the most of your travel budget:
Ready to check today’s rates? Visit CompareTravelCash.co.uk to compare exchange rates from top providers and make your travel budget go further.
Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice. Always consult with a qualified professional before making currency-related decisions.
CompareTravelCash.co.uk is a price comparison service that’s designed to help you save money – While we do our best to ensure the site is 100% up-to-date, we cannot guarantee this.
We advise you to carry out your own due diligence before buying or selling travel money.
