Redeem remaining vacation money now to get the best deals

Dust may be settling on your suitcase and your vacation may be a distant dream, but don’t forget your spare change. It could be a good time to exchange foreign currencies for pounds.

The pound fell to its lowest level in 40 years against the dollar this week as markets were spooked by the accelerated tax cut measures announced by the Chancellor during last week’s mini budget.

This led to a sell-off, with the pound falling to $1.03 on fears it could hit parity with the US dollar. The British pound also weakened against the euro and the yen.

This is bad news for any vacationers traveling to the US, Europe or Japan as you will get less foreign currency for your pound. It also impacts other destinations where the currency is compared to the USD, such as the Indian rupee, Australian and Canadian dollar, Swiss franc and Malaysian ringgit, according to financial broker XTB.

However, on the other hand, if you have leftover currencies from these regions, the current weakness of the pound means that now could be a great time to swap foreign notes.

And with research from Tesco Bank suggesting holidaymakers return with an average of £60 in foreign currency – while a fifth have over £100 lying around – here’s how to get more of your pounds back.

Pound weakness is good news for currency trading

Last year it cost £730 to buy $1,000 while it now costs £935 to get the same amount – bad news for anyone heading to the state.

Meanwhile, Interactive Investor claims that last year Britons traveling to Europe could exchange £855 for €1,000, whereas now they have to shell out £901 to get the same amount.

But if you come back with dollars or euros, you want the foreign currency to be strong and the pound to be weak.

Exchange rate comparison site Compare Holiday Money, explains: “If you’re buying travel money, you want the pound to be strong, so when you buy your destination currency, you get more for every pound. what you spend. It’s no different from trying to buy something while it’s on sale in a store. The cheaper it is, the more you can buy.

“When you come back from vacation and you have some change left, you go in the opposite direction. A strong pound makes your foreign currency less valuable. If you can hold out until the pound weakens, you’ll recover more pounds when you exchange your currency.

“It’s like trying to return things you bought on special, so when they go full price, you get more money back. It doesn’t work in most stores, but it works for currency in reason for the functioning of markets.

For example, if it’s $1.13 for £1, you’ll need more of your remaining dollars in exchange for just one pound. If it’s trading at $1.03 for a pound, you’ll need fewer dollars to trade for £1, which is the situation we’re in right now.

How to exchange foreign currencies for maximum pounds

Here are three ways to help you exchange your remaining currency for the maximum amount of pounds:

Compare and convert redemption rates

You can go to the exchange office where you bought your holiday money to redeem your foreign currency.

Or you can visit Compare Holiday Money which is a free exchange rate comparison site. It checks rates on around 70 currencies.

You tell him what you want to sell and you can choose to exchange your currency in person at certain stores or you can send it by post, although there is a cost to this, so be sure to take into account.

A quick comparison of selling dollars for pounds reveals that for $100 you could get back £90.98 in person (redemption rate 1.09) or £85.63 (including £6.70 handling fee). postage and a redemption rate of 1.08). For rate comparison, yesterday 1 USD = 0.9307 GBP (or 1.075 USD = 1 GBP). On September 12, 1 USD = 0.851 GBP (or 1.175 USD = 1 GBP).

It also lists a redemption rate history resource to help you decide if it’s time to sell your foreign currency.

Currently, it says, “Over the past 30 days, the US dollar redemption rate has risen 9.56% against the British pound, from 0.8495 on August 28 to 0.9307 yesterday. This means that US dollars are worth more today than a month ago.

“If you trade $200, you’ll get around £186.13 today, which is £16.24 more than August 28.”

Buyers – i.e. individual money changers – cannot accept coins or higher denominations (such as €500 notes). With higher amounts, it may be better to opt for special delivery so that the money does not get lost along the way.

It’s also worth checking out Max travel money. Again, it compares a number of offices where you can sell your foreign currency.

It lists the maximum rate of $100 for £89.69.

Sell ​​to family and friends

If you have spare change and you know that a relative, friend or colleague is going abroad, consider selling them your money.

By removing the commissions and fees associated with currency exchanges, each of you should be able to save a few pounds.

You can use sites such as Where to follow exchange rates and foreign exchange markets. You can also Google an association such as “euro-pound” or “dollar pound” or consult Bloomberg and Yahoo Finance, which provide data for comparing currencies to help you find a competitive rate.

Donation to charity

Chances are, if you’ve left some foreign currency lying around from that summer vacation or past holidays, you might not miss it. Although given the current cost of living crisis, you may want to put as many pounds back into your piggy bank as possible.

But if you can afford it, consider donating to charity. This could mean slipping your coins and bills into the envelopes provided on airplanes, rolling them into museum donation banks, or seeing if your local charity will accept them.

For instance, Oxfam has partnered with Cash4Coins which works with businesses, banks and charities to exchange foreign coins and notes.

You can visit your local Oxfam or via their postal service where Cash4Coins will collect, sort and count the donated currency, helping them turn donations into income for Oxfam’s work.

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