Currencies that will give you the most holiday money for your pounds


Updated on 16 February 2015 | 1 Comment

The weak euro is winning for British holidaymakers right now.

With turbulence among the countries who use the euro, the shared single currency has plummeted in value in recent months.

So if you haven’t booked a holiday yet, you might consider travelling somewhere within the eurozone this year, as your holiday money is going to go a lot further.

But sterling isn't soaring against every currency.

Currencies the pound is strong against

This time last year, £1 was worth around €1.20, but it’s now hovering around the €1.35 mark. Post Office Travel Money is reporting that sales of the euro have increased by 220% due to its relative weakness.

It also points out that for £500 you can get around €67.50 more than a year ago. If you want to send some money abroad now, you could secure €659 for £500 right now using the lovemoney.com international transfer centre.

Coupled with the fact that travelling within Europe is generally cheaper than heading further afield, the decent exchange rate might coax a lot of us into holidaying within the eurozone, particularly as prices in Europe have slumped by up to 50% compared with 2009, when the pound hit its all-time low against the euro.

While sterling’s strength against the euro is a hot topic, the pound has actually strengthened the most over the past year against the Swedish krona. You’ll get around 12 krona for £1 right now, while last year you would have received just over 10 krona.

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Currencies the pound is currently weak against

The pound has fallen against the currencies of the USA, Caribbean, Dubai and Thailand. Simultaneously, rising prices are making these places even more costly to visit. Resort prices in Thailand, for instance, are 38% higher than in 2009.

To put the weakness into the context of things you might buy on holiday, the Post Office’s Worldwide Holiday Costs Barometer found that a cup of coffee in Phuket, Thailand, will now set you back around £1.07, or you could buy a bottle of beer for about £1.50. 

Admittedly, neither of these prices is too shabby when compared to the UK, but you can get a coffee in Portugal’s Algarve for just 54p, or a bottle of beer for 77p.

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Should I change now or wait?

It’s impossible to predict whether you’ll be able to get a better or worse deal in a few weeks’ time, and things might get shaken up further by the ongoing talks between Greece and its eurozone partners.

If you’re ready to book your holiday and have money ready for exchanging then it might be simply convenient to change your currency at the same time.

At the very least, if you change now, you’re guaranteeing yourself a deal that’s far better than this time last year. Don’t use a bank to change your money – a recent campaign from one currency broker makes it clear that you’ll likely get a poor deal.

Get the best rate on international money transfers at the lovemoney.com centre

Exchange rates identified in this article were correct at the time of writing. The currency market fluctuates and you may find that deals you are offered are not identical to those quoted.

More on travel and currencies:

The cheapest holiday destinations in 2015

How to get a cheap flight

What does an EHIC really cover?

Foreign currency 'buyback rates' explained

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