Currency

Strong Pound Buys More For Expats

The Pound in your pocket buys more for expats in most countries fuelled by a booming British economy.

During 2015, the Pound increased in valued against 48 of 61 major currencies, according to analysis by Lloyds Bank.

Although the Pound pulled ahead of many rival currencies, expats at the luxury end of the market have seen their spending power shrink.

The Israeli shekel (7%), Trinidad and Tobago dollar (3%) and the Dominican Republic peso (1%) all rose against Sterling, as did exchange rates in The Seychelles and Maldives.

Spending power

“The Pound has seen a good showing against most major currencies in the past year,” said Richard Musty, of Lloyds Bank. “This is mainly due to falling commodity prices and the weakening of the Chinese economy.

“Expats in Europe, Brazil, South Africa and Turkey have all benefitted from increased spending power, but those in more exotic destinations may find their money buys less.”

Visitors to the upcoming Olympic Games 2016 in Brazil can expect a much cheaper trip than those who travelled to the FIFA World Cup in 2012.

Currencies with largest decline against the Pound in 2015

CountryCurrencyExchange rate for £1 in Dec 2014Exchange rate for £1 in Dec 2015Change
ZambiaKwacha9.9916.09-61.10%
MozambiqueMetical50.2479.3-57.80%
UkraineHryvnia24.0935.8-48.60%
BrazilReal4.065.66-39.30%
ColombiaPeso3589.844820.45-34.30%
TurkeyLira3.514.35-24.20%
South AfricaRand17.5521.61-23.10%
RussiaRouble85.25102.84-20.60%
ParaguayGuarani7306.918705.33-19.10%
TanzaniaShilling2746.023267.11-19.00%

 

Source: Thomson Datastream rates December 4, 2014 and 2015

G20 Currencies v Pound in 2015

CountryCurrencyExchange rate for £1 in Dec 2014Exchange rate for £1 in Dec 2015Change
BrazilReal4.065.66-39.30%
TurkeyLira3.514.35-24.20%
South AfricaRand17.5521.61-23.10%
RussiaRouble85.25102.84-20.60%
MexicoPeso22.1625.2-13.70%
CanadaDollar1.792.02-12.90%
EurozoneEuro1.261.39-9.90%
AustraliaDollar1.872.05-9.80%
ArgentinaPeso13.4214.69-9.50%
IndonesiaRupiah19323.3920892.54-8.10%
IndiaRupee97.21100.86-3.80%
ChinaRenminbi9.669.67-0.10%
South KoreaWon17511747.060.20%
JapanYen187.97185.961.10%
USADollar1.571.513.60%

 

Source: Thomson Datastream rates December 4, 2014 and 2015

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