Pound hits parity with the dollar for tourists exchanging currency at UK airports
The pound edged near to parity with the dollar at some UK airports this week, meaning tourists buying currency would only get just over $1 for every £1.
Travellers flying from Heathrow were being given exchange rates as low as £1-$1.05, with some outlets also offering just €0.92 to the pound, reported the BBC.
Sterling has taken a beating over the last few years as uncertainty around Brexit has seen it fall from highs of £1 to €1.44 in July 2015 to lows of €1.08 in August 2017.
This week it plunged to £1-€1.10 and £1-$1.25 on 10 December after Theresa May pulled a vote on her proposed Brexit deal, but has since rallied slightly after she saw off a no-confidence vote from her party.
However, airports always offer a significantly worse rate than the markets, and today travellers are still being offered exchange rates as low as £1 to $1.223 and £1 to €1.078, both at Luton airport’s ICE outlet.
Tourists looking to get the most foreign currency for their pounds should steer clear of airport forex outposts unless ordering and paying in advance – never buy on the day.
Using a comparison site can be useful as it allows you to search for the best rates being offered in your area, and prioritise results by the best deal or proximity.
Once travellers have found the most convenient place to pick up currency at the best price, it’s best to order online in advance and go and collect it (rather than paying extra for delivery).
Alternatively, using a specialist credit card that doesn’t charge for being used abroad can help money go further.
The Independent’s travel correspondent, Simon Calder, recommends a Barclaycard Platinum Visa, which has no non-sterling transaction fees on foreign spend and no charges or interest on ATM withdrawals, so long as you pay it off in full every month.
Other cards which can be used abroad for no charge include Halifax Clarity and Post Office Platinum.
“Whenever you’re paying with plastic, beware of dynamic currency conversion (DCC): the practice of inviting you to pay in sterling abroad,” says Simon Calder. “If you agree, you’ll be charged about 5 per cent over the correct rate.
“There have been reports of some merchants abroad automatically selecting DCC, which should become evident when you are handed the terminal to tap in your PIN. If it happens to you, tick them off and demand to pay in the local currency.”
