//Sterling performance: pound makes recovery

Sterling performance: pound makes recovery

The pound’s recovery in recent months is set to benefit holidaymakers; Croation kuna continues to grow

Sterling’s strong recovery in recent months is set to benefit holidaymakers, according to a report by Post Office Travel Money.

Analysing currency sales for its January-March 2018 Holiday Money Index, it reveals sales of long-haul holiday currencies are ahead of last year’s levels whereas European ones are more cautious.

Sales trends reveal that 80 per cent of the Post Office’s top 40 currencies – apart from the South African rand – are weaker against sterling than they were a year ago.

The pound’s biggest year-on-year gains have been against the Turkish lira (up 27.7 per cent) and Russian ruble (up 25.8 per cent). The US dollar is down 14.7 per cent against sterling.

In Europe, sales of the euro remain buoyant. The pound is just 1.7 per cent weaker against the euro year-on-year, but elsewhere in Eastern Europe sterling has weakened against the Czech koruna, Polish zloty and Hungarian forint.

Despite the fact that the Croatian kuna also remains stronger against the pound – by 1.9 per cent year-on-year, Post Office sales of the currency are soaring. A 32 per cent sales rise for January-March 2018 makes the kuna the Post

Office’s second fastest growing currency after the Thai baht.

Andrew Brown of Post Office Travel Money said: “Our kuna sales have quadrupled over the past decade with no sign yet of a plateauing in demand. While there have been reports of a slowdown in bookings for other European destinations, Croatia seems to be a big exception.

“Another exception is Turkey where tour operators are reporting huge increases in demand.” ABTAmag.com