Eli5, the British pound has hit an all time low. I am traveling to the UK next month from the US. If I change my US money to sterling will things cost me more or less?

Question

Or should i use my US credit card instead?

In: 0

Answer 1

It will make things cheaper for you! Since prices there likely don’t change, you’ll spend less dollars to get the amount of pounds to spend.

Say the pound was worth $1.25. You exchange $500 to get ₤400. So a ₤20 lunch cost you $25.

Now, if the dollar and pound reach parity where $1 = ₤1, so exchanging $500 gets you ₤500, then that same ₤20 lunch now only costs you $20.