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

When you’re in the UK, you have to be spending in Pounds no matter what. When the chip shop closes up for the night, that’s what they want in their register. Modern credit cards kind of disguise this fact by doing the currency conversion behind the scenes, but it’s still happening. The bank gives the chip shop the right number of pounds, then later bills you in dollars based on the foreign exchange rate at the time and likely some additional fee.

This means there’s no escaping currency exchange while traveling. Lucky for you, the fact that the USD is particularly strong relative to most other currencies right now means that you will be paying relatively less during your travels.