November 2 2016
Don’t Let Your Holiday Money Be ‘Trumped’ By US Election
Kiwi travellers are being urged to plan ahead and consider their currency needs ahead of the forthcoming US Federal Election on November 8 2016.
A change in exchange rates, and in particular the NZD-USD exchange rate can have a real impact on overseas spending money, which is often a last minute purchase consideration by travellers.
The number of Kiwis travelling to the USA has seen a steady increase over the last 12 months with new carriers and routes entering the market (Flight Centre NZ reports a 14 percent increase during 2016). Travel Money NZ say this means potential changes in exchange rates is something that could impact on a large number of Kiwi travellers holiday plans.
Daniel Jackson, Travel Money NZ country manager says, “while we don’t know whether Donald Trump or Hillary Clinton will win the election, we do know that sudden and unexpected political changes can have a huge impact on currency markets and affect travellers’ spending money.”
“In June we saw the Brexit vote impact immediately on international currency markets with British Pound notes in short supply as travellers rushed to buy the currency.”
“Kiwis who are travelling soon, and especially to the US over the next couple of months in particular, should review their currency needs and individual situations and decide whether they should lock in their exchange rate now.”
As the Brexit decision unfolded the Pound slumped against the Kiwi Dollar and travellers hit the Travel Money NZ website en masse and customers queued in store.
Travel Money NZ advises customers that their rates are guaranteed for advance orders in-store or online. A prepaid travel money card can have exchange rates locked in on up to 10 different currencies.
“A solution may be to use our Multi-currency Cash Passport™ and lock in your rate and load it with US dollars to use later,” Mr Jackson said.
“We also don’t charge fees or commissions on foreign cash transactions in store and online.”
“If you’re planning a three week trip to the US for two, and have an average spending money budget of $200 NZD a day then your spending money budget is $4,200 in NZD. A 5% decrease in the NZD-USD exchange rate is a $146 loss.”
“Of course a 5% exchange rate increase would mean a loss by locking in the exchange rate now.”
“We don’t have a crystal ball but we know that many travellers prefer to have certainty.”
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