Just five years ago the pound was riding high in the currency exchange market with one pound able to buy €1.5. At present the pound is worth around €1.12. This marks a dip in the value of the pound of around 25%.
The recession of 2008 could be largely attributed to this weakness in value. During the recession the pound saw significant losses, but much of Europe was experiencing similar economic turmoil so holiday makers were not affected significantly.
The aftermath of the recession has really hit the pound hardest.With Britain's close economic links with America, the knock-on effect of America's disastrous approach to the credit crunch saw the pound struggle further whilst the Euro began to strengthen. The Euro bank also took a hard-line approach to inflation. Whilst the British banks cut interest rates drastically to encourage spending and boost the economy, the European central bank refused such measures, leading to a quicker recovery.
So, post-recession the pound may not be in as bad shape as the Dollar, but it lags behind the far superior Euro.
For holiday-makers, the struggling Pound does have its plus points.It represents fantastic value for tourists from Europe who can experience savings of around 20%. This also means that holidays at home are perhaps the best choice for Brits themselves wishing to save a few pounds; and lets face it, our economy needs all the help it can get at the moment and what better way than exploring some of Britain's best holiday spots.
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