You are here: Home - Household Bills -

Another bad year for the pound, as it drops against two-thirds of currencies

Written by:
If this year’s holiday feels distinctly pricier, there's good reason for that: over the last 12 months the pound has dropped against 40 out of 60 currencies, according to research.

However, this was better than last year, when the Brexit effect saw the pound drop against 56 out of 60 currencies. The Zambian kwacha and the Iceland krona were the best performing currencies against the pound, rising by 14%. The Mozambique metical (11%), Russian rouble (10%), Serbian dinar, Poland’s zloty and Hungarian forint (all 8%) have been the next best performers.

The worst performing currency in the past year was the Egyptian pound, which has fallen in value against the pound by 100%. The Egyptian pound was devalued towards the end of 2016 in order to stabilise the economy. The Turkish lira and Argentine peso were also weak, dropping by 17%. Lloyds Private Banking which conducted the research, said security fears and a slowing economy, including high inflation, have helped drive the Turkish lira lower.

Those who like their long-haul exotic holidays will find their money goes further in Sri Lanka and Malaysia where the rupee and the ringgit have fallen by 5% and 4% respectively since July 2016.

However, most holidaymakers will see rising costs. The pound has fallen 6% against the euro, with stronger economic growth in the Eurozone sending the currency higher. It is largely unchanged against the dollar. The pound has also fallen against the Australian dollar, Mexican peso, Indian rupee and Canadian dollar by 5% to 5.5% in the past year.

Peter Reid, expatriate banking director at Lloyds Private Banking, said: “Sterling has had a very mixed performance over the past year. Understandably the pound has appreciated against those economies that are facing problems, especially high and persistent inflation such as Egypt, Uzbekistan, Turkey and Argentina.

“UK travellers going on long-haul destinations, such as the Philippines, Sri Lanka and Malaysia will have benefited from the further strengthening of the pound. However those going to parts of South East Africa and Eastern Europe won’t see their money go far.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
piggy bank lock
Savers need to lock up cash for SEVEN years to match inflation

Despite coming in at a lower-than expected rate of 2.6%, July’s CPI inflation rate still remains a challenge to savers.