Pound sterling falls against 56 of 60 world currencies in a year amid Brexit instability

After a strong performance in 2015, last year the pound fell against 56 of 60 world currencies analysed

Sterling fell in value against other currencies throughout 2016 (Getty)

The pound lost at least a fifth of its value against nine significant currencies last year, according to analysis. Research by Lloyds Private Banking into 60 currencies found the biggest declines in sterling were against the Brazilian real, with a 28.4 per cent fall, the Russian rouble, with a 28 per cent slide, and the Icelandic krona, with a 27.9 per cent fall.

Last year's declines came after a strong year for the pound in 2015, when sterling gained against more than three-quarters of the currencies surveyed by Lloyds. But in 2016 the pound fell against 56 of the 60 currencies it analysed, only making significant gains against two currencies: the Egyptian pound, against which sterling rose by 105.8 per cent, and the Mozambique metical, against which the pound increased by 23 per cent.

Sterling also increased by 0.3 per cent against the Turkish lira and remained unchanged against the Danish krone.

Lloyds said the performance of sterling in the six months before and the six months after June's Brexit vote followed a similar pattern. Sterling declined in value against 54 out of the 60 currencies analysed in the six months leading up to the EU referendum, and fell in the six months after the referendum against 51 countries.

Peter Reid, expatriate banking director at Lloyds Private Banking, said: “The pound's decline is bad news for British holidaymakers, with most destinations becoming more expensive in 2016. Many British expats will also be feeling the pinch; those with incomes in sterling such as pensioners are getting fewer pounds when converting their money.

“However, on the other end of the bargain, British expats living and working abroad and earning in foreign currencies are now getting more pounds for their money and they are seeing their spending power surge when they head back to the UK.”