I’ve traveled a lot and often look at currency exchange. I’ve noticed it’s crucial to know if the UK takes euros. After Brexit, the UK still uses the pound. Yet, some places in London and tourist areas will accept euros. But, think twice before spending euros or withdrawing cash from an ATM. You might face high fees, like $5 per transaction plus another 3%.
Using euros in the UK can also lead to poor exchange rates. You might also experience slow service and extra charges. My guide helps you spend wisely in the UK. It aims to save you money and cut down on fees.
Understanding the UK Currency Landscape Post-Brexit
After Brexit, knowing how to handle money in the UK has become key for euro users. My journey showed that, though you can find places in the UK accepting euros, they are rare. For instance, big London stores welcome international shoppers with euros, but beyond that, it’s tough to use them. However, London’s finance area still sees a lot of business in euros, especially with international banking. UK banks manage a big part of these transactions, holding a 34% share1. London also keeps its spot as a top place for trading OTC interest rate derivatives in euros. But, its hold has slightly dropped from 2019 to 20221.
- Outside of London, in smaller towns, the British pound rules, making euros almost a no-go.
- Seeing Scottish or Northern Irish pounds might confuse you, as they look different but are not foreign.
- Post-Brexit, business adjustments include a reliance on UK clearinghouses for euro transactions until at least June 202512.
As someone who loves to travel, I’ve found it’s best to limit using foreign currency in the UK. This approach helps to dodge extra exchange fees. The ongoing changes, such as the international role of the euro and UK and EU regulations, make the currency landscape here fascinating1. New EU policies are trying to make financial markets more unified and efficient. This could change how euros move in the UK2.
It’s always good to be careful to avoid scams, though they’re not common in the UK. My tip for travelers is to be careful with unfamiliar money. And, change your euros before you come to keep your money’s worth.
Guide to Can You Spend Euros in the UK
Exploring the UK’s streets, you might wonder if you can pay with euros. In tourist areas like London, some stores accept euros. This is handy for using euro cash, even if these shops are few.
In smaller businesses, it’s less likely they’ll take euros. This shows the need to know about the local currency practices. For small buys, many head to currency exchange spots, accepting their rates as part of travel.
Having euros in the UK, here’s what to remember:
- Smaller shops might not take euros, leading you to exchange services.
- Big stores and tourist places might accept them, but check first.
- Euro transactions spell out the amount and use the ‘EUR’ code with numbers3.
- Visa and MasterCard are common but watch for extra charges on foreign buys.
Telling friends from the Eurozone about money exchange can save them from high fees. For VAT, convert foreign currency using the UK market rate or HMRC’s exchange rates. HMRC recommends a ‘period rate of exchange’ for a month’s smooth transactions4.
In cities like Edinburgh and Glasgow, some places accept euros. This includes gift shops and museums. Credit cards like Visa and MasterCard are good, but American Express might not be, due to transaction fees of 1% to 3%5.
Using euros in the UK is convenient at certain places, so know the currency tips. Knowing ISO codes for transactions and HMRC rates helps with money matters during your UK trip34.
Smart Strategies for Currency Exchange and Usage
While in the UK, I find keeping some euros on hand helpful for future Eurozone trips. It saves on exchange fees for both me and friends. Choosing the right currency exchange is crucial to avoid high fees. Mainstream debit and credit cards usually charge about 2.75% to 2.99% for transactions abroad6. Also, using these cards at ATMs tends to cost a similar fee6.
Digital banks like Revolut have been a game-changer for travelers like me. They allow us to spend in over 150 currencies without hefty fees, up to £5,000 monthly, fee-free on weekdays6. For quick exchanges, WeSwap is great, offering swaps in 18 currencies with low fees of 1.3% to 2%6. These smart choices make my trips better and show that using euros in the UK can be cost-effective with some planning.
Prepaid cards are great for travel as they’re accepted in many places. But, watch out for hidden fees like for applying, topping up, or replacing the card6. Paying directly in pounds when in the UK often avoids extra conversion charges. So, I always check my card’s terms to ensure no surprises hit my wallet while abroad.
Source Links
- https://www.ecb.europa.eu/press/other-publications/ire/focus/html/ecb.irebox202306_04~f43eab6f30.en.html
- https://www.ecb.europa.eu/pub/fie/article/html/ecb.fieart202003_01~690a86d168.en.html
- https://publications.europa.eu/code/en/en-370303.htm
- https://www.gov.uk/guidance/foreign-currency-transactions-vat-and-tour-operators
- https://www.frommers.com/destinations/edinburgh/planning-a-trip/money
- https://www.forbes.com/uk/advisor/credit-cards/spending-while-youre-abroad/
