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Foreign currency banknote market

Gonzalo Villegas, Banknote Expert

 

The foreign currency banknote market is experiencing a peculiar situation in Spain this year.

On the one hand, we are faced with a tourist season that is going to break the records of foreign visitor numbers and, as a result, an increase in the amounts of purchases in foreign currencies is more than foreseeable, especially in coastal areas. However this fact will be neutralised to a great extent because most of these tourists come from The United Kingdom
whose currency, the pound sterling, has suffered a significant devaluation as a result of Brexit. Perhaps, in the short term, it may not be very noticeable, since the majority of reservations were confirmed previously, but it will be necessary to pay close attention to the value of the pound sterling to calibrate, in the medium term, the volume of pounds sterling that enters Spain and its equivalent value in euros.

On the other hand, one of the main causes of the tourist success this year derives from the instability and the political situation of several of our tourist competitors, which is causing a practical paralysis of sale operations in these currencies (Tunisian dinar, Turkish lire, Egyptian pound, etc.).

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