If you're looking to save money on your holiday, then there’s good news for anyone planning to travel abroad this year. British holidaymakers now enjoy a better exchange rate in five out of six of the most popular foreign holiday destinations compared to three years ago.
According to analysis by travel money specialist No1 Currency, the pound has strengthened considerably against the Argentine peso, Turkish lira, Egyptian pound and Sri Lankan rupee since 2020, meaning British tourists will find their money goes a lot further when visiting those countries.
Anyone going to Argentina will enjoy the biggest boost, with sterling more than trebling in value against the peso (up 234.6%), while those flying to Turkey will also get a much better exchange rate (the pound is up 205.8% against the lira).
Travellers going to the States or countries that use the euro, like France, Spain or Greece, will also receive a better – albeit more modest – exchange rate compared to March 2020.
The pound has risen by 5.4% against the euro since the UK’s first lockdown, and by 6.4% against the US dollar.
At the other end of the scale, sterling has shed a tenth of its value (down 9.3%) against the Australian dollar, meaning it’ll be more expensive for British tourists to go shopping, pay for meals in restaurants or grab an iced coffee. Sterling also buys nearly a fifth fewer Mexican pesos (down 18.9%) than it did in March 2020.
Simon Phillips, managing director of No1 Currency, comments: “No-one will be celebrating the anniversary of Britain’s first lockdown, but three years on from our national confinement, the pound’s rising value offers a bright spot for anyone planning a summer getaway.
“The pound in your pocket now goes further in the vast majority of the countries typically visited by British tourists. For example, the pound has doubled in value on Egypt’s popular Red Sea coast and in Sri Lanka, which offers palm-fringed beaches and year-round warmth.”
Kenya, Japan, Mauritius, Colombia, Hungary and Jamaica make up the rest of the top 10 holiday hotspots, where the currencies have fallen the most against the pound.
Sterling work: top 25 best-value currencies for UK travellers
Source: No1 Currency analysis, 22 March 2020 vs 20 March 2023
Holiday not spots: the 10 destinations where the pound has fallen or is flat
Source: No1 Currency analysis, 22nd March 22 2020 vs 20th March 2023
Three years on from the abrupt closure of Britain’s borders and grounding of flights, the analysis shows that overall the pound is now worth more against 45 of the 54 (83%) most in-demand currencies.
While double-digit inflation is making the cost of living – including the cost of UK holiday accommodation – soar at home, the sliding value of dozens of foreign currencies will be good news for many people planning a much-needed holiday this year.
On the flipside, along with the Mexican peso and Australian dollar, British travellers visiting the Czech Republic, Norway or New Zealand will find their money does not go as far compared to three years ago.
If you’re wondering what’s the best way to spend money abroad, see our articles on Best prepaid travel cards and Best travel credit cards.
Simon Phillips adds: “To make your pounds go even further, don’t forget to shop around for the best exchange rate when you buy your travel money. To get the best deal, always buy it in advance and never leave things until you get to the airport.”
Looking for more ways to save money abroad? Read our seven easy ways to save money on holiday
