Saturday, 22 October 2016

The Weak Pound is Not Completely Bad News for Expats, Actually

The Weak Pound is Not Completely Bad News for Expats, Actually

The pound to the euro has always fluctuated over time
British holidaymakers have always benefited from a strong pound, but British expats living in Spain have always benefited from a strong euro. The UK government has recently confirmed that they would trigger Article 50 – the official exit of the UK from the EU – in early 2017. Of course this news was immediately followed by all the typical doom and gloom talk and panic, which was only to be expected. What was a little unexpected was that the pound would drop so sharply against the euro afterwards.

While the pound has begun to recover it’s weaker than it has been for some time now. Last year you would get €1.34 euros to the pound. Now you would only get €1.11 euros to the pound. This is quite a considerable drop considering it’s only been a year, and experts are already predicting things can only get worse as Article 50 approaches.

The thing is though; this could actually be good news for current and future expats. The euro is currently stronger than it’s been in over three years, and this will probably not last for too long. The value of the euro fluctuates a lot more than the value of the pound and there are bound to be more ups and downs for both currencies as the Brexit nears.

There is another point to consider here and it’s perhaps the most pertinent of all. It’s important to remember that expat life is a two-way street. Just because you live in Spain and are working for euros that doesn’t mean the pound becomes meaningless to you.

Many Brits in Spain should see the weaker pound as nothing short of a godsend. It makes it much cheaper and easier for an expat to fly back to see their family or to have their belongings shipped over. They can also fly their friends over or purchase things online for cheaper now too.

It is true that Brits who are interested in selling and starting up anew will have a home that is worth a little less but it’s much easier to sell a property in Spain cheaper. This means you’re getting to Spain and living your new life faster than before.

One of the most important nuances to foreign exchange rates is how rich you actually are compared to how rich you end up feeling. When the value of the pound goes down it leaves those euros you’ve got feeling like they’re worth more, and that’s a good feeling for an expat to have.

If you’re unsure about whether or not you should make the jump to Spain then you’ll be comforted by knowing that the pound is currently one of the most stable currencies in the world. If you’re considering that move to Spain then there really hasn’t been a better time than now.