In or out, will the United Kingdom leave the European Union or not?
Who Knows! One certainty is residents of the UK will vote on EU membership this June and if you’re closely following what has been dubbed “Brexit” (British exit) then you’ll know just how confused the British public are about it.
A knock-on effect of the uncertainty surrounding the UK’s position within the EU has been the value of the pound fluctuating against currencies such as the US Dollar. As a result, Brits now face paying more than they did a few months ago for the same products and services.
VPN services are low value items and when currency fluctuations happen it can cause the price to alter rather dramatically. In the case of the currency fluctuations caused by Brexit uncertainty those price increases are now being felt by UK residents.
Nearly all VPN providers list prices in US Dollars regardless of where they’re based and so this is the currency users are charged in.
When paying with a UK credit or debit card banks will give an exchange rate based on the daily exchange and this is why the price fluctuates slightly month on month for UK residents when they finally get the UK Pound Sterling charge.
Leading VPN provider IPVanish costs just US$6.49 per month.
Using the average exchange rate of 0.7041 to the dollar between March 21st, 2016 and March 27th, 2016 and a monthly account from IPVanish would cost £4.57 plus a little bit of change on top if the bank charges for paying in a foreign currency.
Compare this to less than 12 months ago using the average rate for June 15th, 2015 to June 21st, 2015 which was 0.6342 to the dollar. This gave a monthly cost of £4.12 meaning a 45p increase in cost in less than a year.
Although the difference may not seem like a huge amount it is magnified when taking an annual package. What would have cost £49.46 back in June 2015 will now set you back £54.91.
Currency fluctuations happen all the time and as world events play a large role in the currency market it’s almost impossible to determine when rates will be favourable or negative.
One thing is clear that the Brexit uncertainty is definitely playing a part on the value of the British Pound and until the in or out referendum takes place in June then it seems any service or product bought and paid for from another country will cost you more, including your VPN subscription.
If you’re after locking in a price that you’re happy with then the best bet is to take advantage of yearly or bi-yearly accounts from VPN providers, this allows you to lock in the price that you pay at the time and any future negative fluctuations on a monthly basis won’t affect you.