19th December 2014
Before planning your holiday next year, it’s worth having a look at the countries where your pound will buy you more.
Thanks to Britain’s strong economy it has outperformed a number of major currencies over the past year, according to Lloyds Bank Private Banking.
Sterling has increased in value against 42 out of the 74 currencies analysed by the bank, including the Russian rouble and Japanese yen.
Thanks to political problems and economic concerns, as well as huge falls in the oil price, the value of 10 of the currencies Lloyds surveyed have dropped more than 10% against the pound, making those countries attractive propositions for a holiday.
For the second year the Venezuelan ‘bolivar’ has seen the largest decline against the pound, falling a huge 83%. In December 2013, £1 would have bought 10.33 bolivar compared to 18.85 now.
This is due to high inflation in the country – which has hit 60% – and more recently it has been hit by the oil price falls as the country is a major oil producer.
In second place is the Ukranian ‘hryvnia’ which has fallen 77% in value, followed by the Russian rouble which has fallen 52% – however, it is worth noting the research was compiled at the beginning of December and the rouble has suffered serious setbacks in recent weeks.
For countries closer to home, the Norwegian ‘krone’ and Swedish ‘krona’ have both fallen 10%.
Richard Mustu, international private bank director at Lloyds Bank, said: ‘The relative strength of the UK economy has been a key factor driving the increase in value of the pound against the majority of currencies during 2014, which has been good news in terms of helping keep UK inflation under tight control.
‘Sterling’s gains have been good news for many overseas travellers from the UK, including those going to Norway, Sweden and eurozone countries. They have, however, been less beneficial for many UK exporters who have found it more difficult to compete in a number of key export markets.’
Venezuela – bolivar has dropped 82.6%
Ukraine – hryvnia has dropped 77.4%
Russia – rouble has dropped 52.3%
Argentina – peso has dropped 32.5%
Columbia – peso has dropped 12.5%
Seychelles – rupee has dropped 12%
Japanese – yen has dropped 11.8%
Serbia – dinar has dropped 11.3%
Norway – krone has dropped 10.4%
Sweden – krona has dropped 10.4%