Getting less for your pound?

By | Category: Travel tips & opinions

As the getaway begins today for the bank holiday weekend, those going abroad may wonder whether it was worth it given how much money they aill get when they convert their pounds into the currency of their destination.

Holidaymakers to Egypt, Tunisia and Turkey will do better. You’ll get roughly 2.5 Egyptian pounds more for your UK pound compared to the same time last year; about half a Tunisian dinar compared to this time last year and about 1.7 additional Turkish lira.

The media has been pointing out that you’ll get less for your pound against the euro and dollar but that isn’t the whole story.

Compare the rate for pound/euro today and a year ago and it is about the same at €1.14 = £1. (This isn’t what you get for your foreign exchange. the figures I am using are those for traders.)  But there are a number of EU countries that don’t use the euro. In Croatia you will be slightly worse off when buying the kuna and you’ll lose a tenth of a krona when buying the Danish currency. You will get a fraction more Swedish krona for your pound than a year ago and if you holiday in Romania then you will get ever so slightly more than last year.

Against the US dollar compared to a year ago you will be down by about seven cents in the pound. Conversely, if you are thinking of a holiday in Australia then you will be better off by seven cents in the pound and, you’ll be better off by two cents in the pound when converting to New Zealand dollars. You’ll be three cents worse off in the pound if you are buying Canadian dollars

Go to Thailand and you’ll just be two baht in the pound worse off.

All-in-all, it isn’t too bad. But that is today. That isn’t the way the media is spinning it. Unfortunately, In a week’s time it could alter significantly. The best advice is still to shop-around and don’t buy at the airport or at a port or railway station. Order online for a better rate and collect it at the airport where a branch is available or get it delivered. And the more you buy the better rate you are likely to get.

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