The value of sterling fell against most other currencies on the world money markets after the UK voted to leave the EU, leaving tourists facing higher costs. Now the upcoming snap general election should mean that British holidaymakers can get more for their money this summer.
Theresa May’s announcement of an early general election has seen sterling make gains on 120 others currencies and the pound also hit a six-month high against the US dollar.
Improvements in the pound
Ian Strafford-Taylor of currency specialists FairFX said: “Tuesday’s news of a snap general election has driven improvements in the pound.”
Sterling strengthened by around 3% against the currencies of Canada, Argentina and Mexico, and by around 2% on Japan, Croatia and Russia, as well as 112 others. Against the Euro, the pound recovered to €1.19 after falling as low as €1.10 in November last year. This means a gain of €90 for every £1,000 exchanged.
“This is finally good news for customers looking to buy currency whether they’re going on holiday or planning any international purchases such as buying a property abroad or planning an overseas wedding or gap year," Strafford-Taylor explained.
Political events at home can have both positive and negative effects when it comes to the value of the pound abroad, and this can mean holidaymakers tailor their choices to get the most for their money.
Currently Turkey is one of the best holiday destinations for Brits on a budget but there are plenty of other destinations that offer good value.
According to the Post Office, who had to revise their recent research on its holiday money sales after the surprise election announcement, there is still a healthy demand for travel money. Online currency sales have risen by 47% in 2017 so far compared to the same period last year.
If you’re thinking of travelling abroad this year, be sure to organise your Budget Travel Insurance in advance.
Date Created: 25/04/2017