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@Ramsaye
Tim
Ultimately it depends not where the money is now but which currency they need the money to be long term in the future.
If your long term commitments (mortgage, pension requirements etc...) are in a specific currency then why run exchange rate risks over and above investment risks or interest rate risks. So if your friend is buying a house here and plans to retire here and his only need for Euros is the odd weekend in Amsterdam with his Brummie mate then he should really think about having some or all of his savings in sterling. This way currency movements will not impact his savings against needs ratio. If he intends moving to Euroland at some point then it makes sense to stay in the Euro for the same reasons.
As for timing the switch, the current rate is good based on historical levels. Not switching when there is a long term need to switch introduces the extra exchange rate risk and it is down to your friend how much risk they are willing to accept in return for the possibility of a gain in the exchange rate (which could also go against them). The simple fact that they are asking the question implies that they are worried about this risk and should be thinking of converting at least a portion of their savings over. (Assuming long term need will be in sterling).
References to him are because I cannot imagine you having a girl friend.