Brits willing to put nearly all spending on hold to preserve their holidays

Foreign currency sale volumes are one key barometer; data from the report reveals sales of nine of the Post Office’s top 10 currencies have increased year-on-year, highlighting a return to near pre-pandemic demand.

Increase in sales of both euros and dollars, up 45% and 23% year-on-year respectively, underline the enduring desire for travel to the continent, as well as across the pond, despite the weakness of the pound.

But Brits are evidently also keen to travel further afield than Europe and the US this year after most countries in Australasia reopened their borders. Sales of Australian dollar have gone up 225%, while demand for New Zealand dollars and Japanese yen has skyrocketed by 2,134% and 8,040% respectively.

“Sales are accelerating and, with the recent growth trend, we fully expect the New Zealand dollar and Japanese yen to remain among our bestsellers in the months to come,” said Post Office portfolio director for financial services Ed Dutton.

Even with heightened living costs, finding bargains is not an impossible feat when looking more closely at the value of different foreign currencies.

According to the Post Office, if Britons want to save up, their best bet is to look at destinations where the local currency is currently weaker than the pound, such as Egypt, Turkey and South Africa.

Due to the collapse of the Egyptian pound, visitors to the country will have 53.4% more cash to spend – the equivalent of more than £174 on a £500 exchange – making favourites like Sharm el-Sheikh and Egypt’s Red Sea coast particularly attractive.

Those looking to head to Turkey, meanwhile, will have an extra £80 to spend from their £500 currency due to the already weak Turkish lira’s tumbling further following last month’s devastating earthquakes.

Cape Town, though, has been crowned the best value of the 40 destinations studied by the Post Office following an 15.8% dip in the value of the South African rand. 

The total cost of a basket of typical tourist items, such as sun cream and drinks, amounts to just £51.44 per person, down from last year’s £92.77.

“It is still possible to bag a bargain with careful planning,” Dutton added. “Check exchange rate movements and the cost of holiday essentials before booking to see where you might get more holiday cash for your pounds.”