Sterling riding a five year high against the US dollar
- Top five holiday currencies pegged to the US dollar gives Brits more spending power
- Brits’ holiday money will go 10 %further than in 2013 when buying US dollars and pegged currencies
With the pound riding a five-year high against the US dollar, there could not be a better time for Brits to purchase travel money ahead of the summer holiday exodus.
For those who have not yet settled on a holiday destination, it will come as welcome news that it’s not just the States that will give more bang for your buck – there are many currencies pegged to the US dollar, meaning that there are deals to be had elsewhere too.The UAE dirham and the East Caribbean dollar are just two examples of the 21 currencies pegged to the dollar – meaning destinations such as Dubai and the Caribbean are looking extra inviting.
Mark Horgan, CEO of foreign currency specialists, Moneycorp, gives expert insight on how to make the most of the current strength of the pound against the US dollar, not just in the States, but at a number of other holiday hot spots too:“The pound has been growing stronger and stronger over the past year – meaning that there are deals to be had when buying travel money. The current strength of the pound is making holidaying abroad an attractive option, particularly when buying US dollars. “What British holiday makers may not have considered is that there are other currencies promising great exchange rates, due to their relationship with the US dollar. A total of 21 currencies in the world are pegged to the dollar, so the strength of the pound against the dollar works out in Brits favour in more countries than just the US.
“We are seeing that the spending power of British holidaymakers and travellers visiting the countries where the currency is pegged to the US dollar has increased – in fact their travel money will go 10% further than this time last year. This considerable saving makes holiday destinations pegged to the US dollar an attractive prospect this summer.
“While now is certainly a great time to visit the US, it is also a great time to book a trip to the Caribbean or Dubai, as both the UAE dirham and the East Caribbean dollar are pegged to the US dollar.
“Sipping a rum cocktail on a beach in Barbados, for example, which costs around 8 Barbadian dollars would this month cost you £2.45 compared to £2.80 in 2013. So, more rum for you money!
“Or perhaps a night at the famed Burj Al-Arab hotel in Dubai, which will set you back 4,941 UAE dirhams, which in 2013 would have cost you £909.94, but a night of luxury now will cost you £807.35 – saving £102.59.
“The travel money deals don’t stop there. With the Hong Kong dollar also pegged to the US dollar, flying long haul could be worth the trip. A trip round Hong Kong’s bay to view the city costs 300 Hong Kong dollars, which in 2013 would have been £26.13 but today is £23.26.”
Moneycorp’s top 5 travel destinations currency table:
||Rate against the pound in 2013
||Rate against the pound in 2014
|East Caribbean dollar
||Antigua and Barbuda, Dominica, Grenada, Monserrat, Saint Vincent and the Grenadines
|Hong Kong dollar
|United Emirati dirham