Exchange Rates – Baffled by the Euro

What exactly are the current exchange rates for the Euro? As recently as 2003, the average Briton thought it £1 was the equivalent of four euros, highlighting a general ignorance when it came to the exchange rates. An incredible 80% of people surveyed four years ago had no clue what the exchange rates were or what the value of the euro was. The average person guessed a pound was the equivalent of four euros, not the 1.49 euros the exchange rates in 2003 would actually get you. Some of those surveyed even thought a pound equalled ten euros showing a massive misunderstanding of the exchange rates between the pound and the euro.

Exchange rates unknown

The ramifications means that when it comes to spending euros on holiday, Brits could dramatically get their budgets wrong, and could even find themselves in debt by overspending. The survey in 2003 revealed that around 20% of those questioned knew the value of the euro, which was a marked improvement on the 12% from the previous six months. It's hoped that now, in 2007, there is a lot more awareness of exchange rates when it comes to the pound and the euro.

The 2003 survey revealed:

• 52% of women and 33% of men had no clue about the sterling to euro exchange rates
• The average man thought the exchange rates meant a pound was the equivalent of 4.2 euros 
• The average woman thought the exchange rates meant a pound was the equivalent of 4.55 euros

Consumer understanding of the euro conversion rates and general exchange rates for the pound is still lagging, and for holidaymakers it's vital they get to grips with it if they don't want to lose a grip of their wallets.

Foreign exchange rates – Euro facts

• The euro is currency in 13 member states of the European Union - Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain.
•  Ten new countries joined the European Union on 1 May 2004. They are Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic and Slovenia and are therefore expected to adopt the euro. Slovenia joined the euro on 1 January 2007.
• Since 1997, the UK Government has been making plans for joining the euro, so that we would be ready to join if Government, Parliament and the people all agreed it would benefit the UK.

Foreign Currency Exchange Ltd is a commercial currency brokerage based in the UK. We help thousands of clients move hundreds of million pounds across the globe every day. From large businesses to private individuals who wish to send regular payments abroad, you can save money with us by getting better currency exchange rates than with your bank. The Foreign Currency Exchange buys currency at wholesale rates and can help you save money with our fast secure service. For more information contact us now, telephone +44 (0) 20 7989 0000 or email info@fcexchange.co.uk