UK consumers’ ignorance around foreign currency exchange rates has been highlighted in a new study.
When more than 2,000 UK consumers were asked to convert £1 into its equivalent value in euros, only one in ten provided an accurate estimate at 1.4 euros.
Almost a quarter (23%) stated outright that they did not know.
Only 14% of those surveyed were aware that £1 is equivalent to $1.5, with 32% saying they did not know.
Asked to rate their own understanding of foreign currency exchange rates, more than half of UK consumers (55%) admitted to being ‘not knowledgeable’, and just 6% claimed to be ‘very knowledgeable’.
When responses were split by gender, a clear divide emerged, with men far more confident in their grasp of foreign exchange rates than women.
More than half (56%) of men claim to be ‘knowledgeable’, compared to just over a third (35%) of women. Men are twice as likely to rate themselves as ‘very knowledgeable’ about foreign exchange rates compared to women (9% vs 4%).
The research, conducted by YouGov for new industry body Dynamic Currency Conversion Forum, confirms that for the majority (62%) of consumers, cash is the most popular payment method when abroad, followed by credit/debit card (27%) and pre-loaded money cards (10%).
On average, Britons expect to spend £736 abroad over the next 12 months, excluding fights and accommodation. More than 20% of respondents expect to outlay of £1,000 or more.
DCC Forum chairman, Gino Ravaioli, said: “We know that Britons collectively make around 60 million trips abroad every year, and a strong grasp of foreign currency exchange rates allows travellers to be more financially astute when making overseas purchases.
“Consumers paying in a foreign currency can quite often lose track of their spending when abroad, and having a clear understanding of exchange rates helps to mitigate this.
“For travellers who don’t have time to research and understand exchange rates, dynamic currency conversion - a process in which consumers can pay in pound sterling at point of sale - offers transparency and peace-of-mind when it comes to budgeting.”
This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.