The pound to euro exchange rate continues to hold just above the 1.15 today, similar to what it has been trading at in the past few weeks. According to one expert, this is unlikely to change until the Bank of England meeting on Thursday.
The ban on international travel is set to be lifted on May 17 in the next step of easing lockdown restrictions.
Countries will be placed under the Government’s “traffic light” system, but it is thought that only a handful of countries will be on the “green list”, meaning there will be no mandatory quarantine on return into the UK.
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James Lynn, co-CEO and co-founder of Currensea explained: “It is beginning to look more and more likely that international travel will be back on the cards this Summer with the announcements this week that Spain will be welcoming tourists back in June and the NHS app will be used as a vaccine passport for travel.
“Especially during this volatile time, it’s safer to keep hold of your money in your UK bank account than purchasing or exchanging for holiday money.
“Once we are allowed to travel again, this will hopefully signify the end of the COVID bump and I anticipate this will mean the pound will improve significantly.”
Spain has said British travellers will be welcomed back this summer as it prepares for June to be the month for tourism “recovery”.
However, it is thought that holiday islands in Spain are set to be on the UK’s “amber” list with insiders revealing only a “tiny handful” of destinations including Gibraltar, Israel, Iceland and Malta on the “green” list.
This means that holidaymakers returning from these countries will be subject to a 10 day quarantine period at home as well as a negative test on return.
Islands set to be on the “amber list” includes the Balearics, where the rate of coronavirus cases is less than a quarter of that in Spain, and the Canary Islands, which has vaccinated nearly a third of its adult population.
It is thought that Portugal could be the only major holiday destination in Europe on the “green” travel list.