Savvy shoppers exchanging foreign currency for sterling at M&S

As the pound continues to fall in strength against foreign currencies, Christmas shoppers have been digging-out their old foreign currency and exchanging for sterling.

Last month M&S Money saw a record number of people exchanging foreign currencies for sterling across the network of in store bureaux de change.

There has been a particularly high demand to exchange US dollars for sterling - a 53% increase in such turnover in the past three weeks compared to the same period last year. Other popular ‘buy back' currencies in November were the Swiss Franc and Japanese Yen.

Fraser Millar, M&S Head of Travel Services, said: "This time last year travellers heading to America were getting a great deal - almost US$2 for every £1. At that rate you would be wise to hold on to any dollars brought back to the UK and use them on your next trip.

"Now the pound has weakened against the dollar - around US$1.44 for every pound - so you are getting less for your money in the US. Travellers returning home with cash who may have previously held on to the currency are now keen to grab the relatively low ‘buy back' rates."

Previous research carried out by M&S Travel Money found that 80% of Brits bring back foreign currency when they return from a break abroad. Almost a third (28%) of those return home with more than £50 worth.

Over three quarters (76%) of British travellers that bring back foreign money said they do not bother or just forget to change the money back into sterling and a third (33%) simply leave it untouched in a drawer, wallet or handbag.

Fraser added: "As families continue to face financial pressures, the trend to keep currency rather than change back to sterling is likely to decrease. M&S offers a commission free buy-back service, so travellers don't have to worry about bringing lots of cash home with them."