Sharp falls in the value of the Egyptian pound could make Sharm el-Sheikh and other Red Sea resorts a cost-effective choice for UK-based holidaymakers looking to travel abroad in 2023, according to analysis.

Post Office Travel Money found the gains that sterling has made against the Egyptian pound over the past year equate to getting around £210 extra on a £500 currency transaction.

The Post Office also said sales of the East Caribbean dollar have increased particularly strongly compared with the months leading up to the coronavirus pandemic.

Sales of the Mexican peso and the Jamaican dollar have also risen markedly, it said.

Ed Dutton, portfolio director, financial services at the Post Office, said: “The fairest measure of demand is to compare currency sales now with the busy period before the Covid-19 pandemic.

“Sales of Caribbean and Latin-American currencies were particularly strong then, so it is encouraging that they are even more buoyant now.

“However, sterling has fallen in value against many of these currencies so holidaymakers should factor this into their holiday budgeting. A destination like Sharm el-Sheikh may prove cheaper because of the Egyptian pound’s steep fall in value against sterling.”