As British pound value plunges, Singaporeans urged to travel to UK
Singapore. On Monday, the value of the Pound Sterling dropped 4.9% to $1.0327. This is the all-time low British pound value before stabilising at $1.05405. The recent drop has paved the way for opportunities for Singaporean businessmen and travellers.
“The current rate and drop is very volatile, but I don’t think it’s here to stay. I’ll give it two to three days for it to bounce back to its usual rate,” stated Mr Mohamed Rafeeq, who owns Clifford Gems and Money Exchange located in Raffles City Shopping Centre.
He added that now is the best time for Singaporeans to go on a UK holiday since this is the cheapest rate ever. On Monday at 7 p.m., the Singapore dollar was valued at $1.54 against 1 pound. This is a huge difference compared with the value during the end of August at $1.63.
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Chief Economist and Head of Treasury Research and Strategy at OCBC Bank, Ms Selena Ling, also said that the current value will also benefit those who want to invest in the UK property sector.
Since 10 September, travel agencies have experienced a 30% increase in inquiries about holidays to the UK.
“Singaporeans will also enjoy cheaper goods imported from the UK or see it as an opportunity to send their children there to study,” shared Ms Ling, adding that the weaker pound value is set to add to imported inflation, as well as the challenges faced by the British economy.
Meanwhile, for Singaporeans who already have properties in the UK, the value of their assets in SGD may pose a concern.
“UK is not a top major trading partner of Singapore. China’s struggling economy and the large and rapid rate hikes in the Western economies are more worrisome for the global outlook,” said Mr Philip Wee, Senior Foreign Exchange Strategist at DBS Bank.
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