Dirham powers travel dreams

Exchange rates open wide range of holiday destinations to UAE residents.

ABU DHABI // For UAE travellers planning a visit to Africa, now just might be the right time.

Three countries in the continent are among the top five in a list compiled by foreign exchange company Travelex showing the global currencies that have had the biggest slide against the dirham over the past 12 months.

That means more money for your dirhams when travelling to those destinations.

With places on the list from every continent, travellers have plenty of choice if they are plan to escape the desert heat or make a getaway during the holy month.

At the top, Namibia and its southern neighbour, South Africa are now considerably cheaper for UAE residents after the value of their currencies fell by 20 per cent against the dirham.

For UAE travellers, that means a trip today will net an extra Dh830 when exchanging Dh5,000, compared with a booking made in May last year.

At No 3 on the list is Brazil (16 per cent fall against the dirham), which will surely please those flying out to catch the action at this summer’s Olympic Games in Rio de Janeiro, because they will be carrying about an extra Dh700 when exchanging Dh5,000.

The slide of the Brazilian real follows 12 months of dismal performance from the previous year, in which the dirham rose 39 per cent against it between June 2014 and June last year.

The Mexican peso is fourth, with Tanzania’s shilling rounding out the top five – which will make spotting a lion at Serengeti National Park a lot cheaper.

Rounding out the top 10 are Malaysia, New Zealand, Poland, Thailand and the Philippines.

Changes in the British pound, euro and the Chinese yuan have been negligible compared with the currencies on the list.

Because the dirham is pegged to the US dollar at a fixed rate of Dh3.67 to $1, when other currencies weaken against the dollar, they also weaken against the dirham, giving tourists and expatriates sending money abroad to those countries a financial boost.

“The weaker rand is a big advantage for me,” said Abu Dhabi resident and South African Karla Green, who plans a trip home next month.

“It means I’ll stock up on things in South Africa to bring back, whether it’s clothing, vitamins or cosmetics, or even holding out for certain services, like getting a haircut and colour.”

Michelle Smith, marketing manager with Flight Centre UAE, said exchange rates, visas, the length of flight, direct flight options and price all played a role when people planned holidays.