Travel money: How to get the best exchange rates on your holiday currency and top ways to pay abroad
At sterling’s 21st-century peak in 2008, £1 was worth over US$2 on the foreign exchanges. During the calamitous premiership of Liz Truss, the pound sank almost to parity against the American dollar in October 2022. The UK currency has recovered slightly, but is still only worth $1.26 or so. Sterling’s fall is mirrored against other currencies that are locked to the US$, including UAE dirhams and the dollars used in many Caribbean islands.
Shortly after the euro was introduced at the start of 2002, sterling was riding high: worth €1.65. Today it has shed about 50 euro cents to around €1.15. Against the Swiss franc, the pound has fared even worse – losing half its value in 15 years, corresponding to a doubling of prices for British travellers.
Given the continued erosion in the value of the pound, it is essential to avoid further losses by managing your holiday finances well.
If you leave holiday money to the last moment and change money at the airport on your way out, you will be wasting your cash – which would be much better spent at your destination. In addition, the pandemic accelerated changes in how travellers transact, with contactless payment increasingly the
