UK tourists benefit from growth in sterling against holiday currencies

UK travellers are benefiting from sterling being stronger than four out of five foreign currencies in popular holiday destinations compared with a year ago, new figures show.

The largest bonus is for visitors to Chile as the pound has grown 19% against the Chilean peso since February 2019, according to analysis by Post Office Travel Money.

That means someone buying £500 of the currency will get the equivalent of an extra £87 of cash to spend on their trip.

South Africa and Mauritius are among several top winter sun destinations where sterling will stretch further than last year.

UK visitors will get 11% more South African rand and 9% more Mauritius rupee than 12 months ago.

Sterling has also grown by 4% against the euro and less than 1% against the US dollar.

Only eight of the 40 currencies analysed have strengthened versus the pound since February 2019.

The Egyptian pound has grown the most at 10%, followed by the Costa Rican colon (up 7%), the Russian ruble (up 3%) and the Swiss franc (up 2%).

Nick Boden, head of Post Office Travel Money, said: “Sterling is now stronger against the vast majority of holiday currencies and that spells great news for holidaymakers.

“UK tourists can do even better by picking a destination where the cost of living is low so they benefit from both the stronger pound and low prices in resort restaurants and shops.

“However, sterling is entering uncharted territory and exchange rates could continue to fluctuate throughout 2020 as trade negotiations with the EU progress.

“We advise holidaymakers planning trips abroad in 2020 to keep a close eye on rate movements and purchase foreign currency when sterling will give them more cash for their pounds.”