Where in the world to make your pound stretch further and get some serious winter sun as the Dominican Republic leads the currency pack for British holidaymakers
- Year-on-year, sterling is up against 80% of the UK's top 40 holiday currencies
- Picture is 'patchier' across Europe, with many paying more than a year ago
Britons looking for a spot of sunshine this winter can take advantage of the pound's momentum against some of the top holiday currencies, new findings suggest.
Your pound will stretch further in far-flung exotic destinations like the Dominican Republic, Costa Rica and Barbados than it did a year ago.
Year-on-year, the pound is up against 80 per cent of the UK's top 40 overseas holiday currencies, Post Office Travel Money said.
Opportunity: Britons looking for a spot of sunshine this winter can take advantage of the pound's momentum against some of the top holiday currencies
For holidaymakers looking for a trip to the Dominican Republic, the peso has slumped by 16.7 per cent against the pound in the last year.
This means British holidaymakers can now get around £72 worth of extra peso on a £500 currency transaction, the findings suggest.
The majestic rainforests and bountiful wildlife in Costa Rica can also be enjoyed while your pound is being stretched further.
The Costa Rican colon has dropped by 16.6 per cent since February 2016, giving British holidaymakers the equivalent of £71 more for their £500 transaction than a year ago.
Andrew Brown, Post Office head of travel money, said: 'Every long-haul currency in our top 40 - except for the Malaysian ringgit - has fallen against sterling since last February and, with savvy travellers watching exchange rates carefully, there is good reason to believe that more of them will consider holidaying further afield this year.'
Perfection: In the Dominican Republic you will see your pound stretch further than a year ago
Time for sun: Year-on-year, the pound is up against 80 per cent of the UK's top 40 currencies
Seize the moment: Your pound will stretch further in Costa Rica than it did a year ago
According to the Post Office, the situation for British holidaymakers travelling to the US and other destinations who have their currencies pegged to the dollar is also steadily 'improving.'
Britons visiting 'dollar destinations' like Antigua, Barbados, St Lucia, Dubai, Oman and of course the US can expect their pounds to stretch between 11.5 per cent (Barbados) and 12 per cent (St Lucia and Antigua) further than a year earlier.
This will give holidaymakers up to £53 more cash to spend than a year ago on a £500 currency purchase.
Against the New Zealand dollar, sterling is up around 10 per cent year-on-year, giving the equivalent of £46 extra on a £500 exchange.
Get a deal: The Costa Rican colon has dropped by 16.6 per cent since February 2016, giving British holidaymakers the equivalent of £71 more for their £500 transaction
Look closely: Travelling further afield can make your pound stretch further
While far-flung destinations are looking like a good bet if yo want your money to stretch further, the findings suggest the picture is 'patchier' across Europe.
Holidaymakers to eurozone destinations will have the equivalent of £20 in euros less on their £500 transaction than they did a year earlier. In Portugal's Algarve and Spain's Costa del Sol, prices of staples like food and drink have soared by 30 per cent in a year.
Having suffered a spate of terrorist attacks, holidaymakers remain wary about heading to Turkey, with the Turkish lira having halved in value against the pound in the last five years. Needless to say, trips to the country remain cheap, even in key resorts like Marmaris.
When taking any trip abroad, shop around for the best exchange rates and do your homework to make sure you can use your cards abroad without being stung by hefty fees.
Steady: The situation for British holidaymakers travelling to the US is slowly 'improving'
Views: In dollar-pegged destinations like Dubai your pound will stretch further than a year ago
THIS IS MONEY'S FIVE OF THE BEST HOLIDAY MONEY DEALS
Starling Bank's current account allows free purchases and cash withdrawals abroad. The bank also offers up to 0.05% interest on balances up to £85,000. The account is managed by smartphone app only.
The American Express Premium Plus Credit Card offers a 25,000 free Avios boost when you spend £3,000 in the first six months after opening. It pays 1.5 Avios per £1 spent and carries a £195 annual fee. 74.7% APR.
Metro Bank will not charge you for using your card or withdrawing money from an ATM in Europe, but it will charge 2.99 per cent on both card purchases and ATM withdrawals (plus a £1.50 fee for the latter) for the rest of the world.
FairFX is offering This is Money readers a free prepaid Mastercard currency card. It offers highly competitive exchange rates, no foreign transaction fees and low cash withdrawal charges abroad. Comes with a £10 bonus when you top up.
Santander's Zero Mastercard credit card offers fee-free spending and cash withdrawals worldwide, with 0% interest on all purchases for 12 months from account opening. Representative APR of 18.9 per cent.
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