Save, make, understand money

Editor's Pick

Where will your holiday money go furthest?

Kit Klarenberg
Written By:
Kit Klarenberg

Three months on from a seven-year high, the pound remains strong against not only the euro, but other European currencies.

If current trends continue, holidays to the continent this summer will be significantly cheaper than last year.

Across the eurozone, prices have fallen by up to 23 per cent in the last year. However, in Bulgaria, prices have collapsed by as much as 32 per cent. Research compiled exclusively for YourMoney.com by the Post Office reveals the average cost of nine key consumer staples in the 14 cheapest European destinations.

YMoney. Holiday Graph.29.5.15

Such price falls are not restricted to mainland Europe. A strong pound has increased UK consumer buying power the world over. Exchanged money will go furthest in Brazil, Japan, Australia, Mexico, New Zealand, Canada and Mauritius this summer. Conversely, holidays to the USA, China, Switzerland, Thailand and Vietnam will cost more. The table below illustrates how much more – or, much less – £500 will buy you in 40 separate international currencies.

YMoney. Currencies Graph.29.5.15

Of course, currencies can rise and fall in value overnight – and it can be difficult to predict how rates will move.

While those jetting to the eurozone this weekend will find their money going further than at any time in the past seven years, this situation may change by the time summer rolls around.

Those who have holidays scheduled for later this year who wish to capitalise on current rates may want to consider purchasing a prepaid currency card. Prepaid cards allow holidaymakers to store money, on rates ‘locked’ at the point of purchase; if the euro strengthens in the weeks to come, it won’t affect money stored on the card.

Currently, prepaid cards are typically only available for dollars and euros, although bureau de change ICE recently announced it intended to extend the facility to other currencies.