Press release -
Sterling performance by UK pound puts more cash in pockets of Britons holidaying abroad
Rising rates for sterling mean holidaymakers can look forward to getting more for their money in the vast majority of holiday destinations this year, according to new exchange rate analysis by Post Office Travel Money for its regular Holiday Money Index survey of currency rates and sales trends.
Sterling has strengthened in value against 21 of Post Office Travel Money’s 25 bestselling holiday currencies over the past 12 months but the amount by which Britons can hope to benefit varies quite significantly from one destination to another. While Britons can expect to receive 3.8 per cent more than a year ago when changing their pounds into euros and 5.5 per cent more US dollars, they will get far more for their money when visiting Turkey, Kenya and Japan.
The Exchange Rate Monitor,published as part of the Holiday Money Index, reveals that Britons visiting Turkey will currently get around 73 per cent more liras for the pounds than a year ago – the equivalent of almost £211 extra on a £500 currency purchase. This rises to 113.5 per cent – or £266 extra - over two years.
Sterling has also gained almost 21 per cent in value against the Kenyan shilling and 15.7 per cent against the Japanese yen compared with a year ago. Although the dramatic fall in value of the Egyptian pound reported in last year’s Holiday Money Index has bottomed out, it is still 6.3 per cent weaker than last March. Cumulatively, this means visitors will receive around £234 (88 per cent) more on a £500 currency transaction now than two years ago.
There have also been sizeable sterling gains against the currencies for a trio of the most popular destinations for UK holidaymakers – Prague (Czech Republic: +12.7 per cent), Thailand (Thai baht: +9.9 per cent) and South Africa (South African rand: +9.2 per cent), while Britons visiting friends and family in Australia will get 8.5 per cent more holiday cash for their pounds.
Only four currencies – the Polish zloty, Mexican peso, Costa Rican colon and Swiss franc - have gained ground against sterling. The pound’s biggest fall of 4.3 per cent year-on-year has been against the Polish zloty, although this is eclipsed by two year losses of over 20 per cent against the Costa Rican colon and Mexican peso.
Laura Plunkett, Head of Travel Money at Post Office, said: “Sterling’s current buoyancy against most leading holiday currencies – including the euro and US dollar – provides a great incentive for Britons considering trips abroad in the coming months. Most currencies have weakened against the pound in the past year, and many of these are for destinations that traditionally offer the cheapest prices for meals, drinks and other tourist staples. Good examples of this range from Turkey and the Czech Republic in Europe to Kenya, Thailand and Vietnam further afield.”
The latest analysis of currency sales by Post Office Travel Money, which accounts for one-in-four of all UK foreign exchange transactions, reveals that sales of 16 of its 20 bestselling currencies have risen over the past 12 months (February 2023-January 2024). It also observes that many of these currencies are continuing to show marked growth in 2024 to date.
Reviewing sales for January 2024, Post Office Travel Money reports that Caribbean currencies have seen the most dramatic year-on-year growth among its 20 bestselling currencies. In particular, it found that East Caribbean and Barbados dollar purchases rocketed by 103 per cent and 64 per cent respectively in January – outperforming growth levels by rival destinations in the Far East.
However, taking at the year as whole, seven Far Eastern currencies dominate the top 10 chart of Post Office Travel Money’s currencies showing the greatest levels of growth. The biggest percentage sales increase was for the Chinese yuan, which recorded a spectacular 573 per cent year-on-year rise, albeit against very low sales the previous year when visits to China were off limits.
Demand for Japanese yen has also mushroomed, taking it into Post Office’s top 10 bestsellers for the first time. Sales rose 38 per cent year-on-year in January to contribute to an overall 12 month increase of 357 per cent – clear evidence, suggests Post Office Travel Money, of the latent demand for holidays to Japan, which reopened to international visitors much later than most other long haul destinations.
There were also sizeable January sales rises for the Thai baht (+36 per cent) and Vietnamese dong (+25 per cent), both of which feature among the 10 currencies to have weakened most against sterling in the Post Office Exchange Rate Monitor. For the year as a whole Thai baht currency sales rose by 47 per cent, taking it to sixth place in the bestsellers top 10, while purchases of the Vietnamese dong were up by 96 per cent, helping it to move up the Post Office chart to 25th position.
Taking second place in the annual growth chart, the Egyptian pound’s 503 per cent year-on-year sales rise reflects not just latent demand to visit Egypt’s heritage sites and Red Sea resorts, closed to British visitors for several years until recently, but also the impact of the collapse of its currency, which has seen Britons get significantly more cash for their pounds (see page 1).
The euro and US dollar remain by far the most popular holiday currencies, topping the chart for the past year as they have consistently done - and a sales increase of nine per cent in January made the euro the 10th fastest growing currency for that month.
Demand for aspirational destinations is also particularly strong. Both the Australian dollar, third in the Post Office bestsellers top 10, and New Zealand dollar, ninth in the table, have built on the exceptional currency growth seen a year ago when Australia and New Zealand re-opened to international visitors.
The Post Office is the UK’s leading foreign currency provider, offering over 60 currencies for pre-order at 7,000 Post Office branches or online at www.postoffice.co.uk/travel for next day branch or home delivery. 3,600 larger Post Office branches stock the leading currencies and more than 7,000 offer euros over the counter without pre-order. These can also be ordered online for same day ‘click and collect’ at selected branches, next day collection at any branch or home delivery.
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