Map template: Wikipedia.org

Everyone seems to be talking about how expensive it is to travel overseas on the newly weak dollar. It is true that the majority of international travel destinations are significantly more expensive for Americans than they were just 5 years ago, due largely to the weakening of the American Dollar. For example, if you are planning a big trip to Europe in the coming months, you’ll be disappointed to find that your dollars are now worth 28.4% less than they were 5 years ago when compared to the Euro.

However, not all international currencies have strengthened relative to the dollar. The dollar is still the most influential currency in the world today, and when it weakens many other currencies weaken as well, keeping the relative buying power of the dollar roughly the same.

Just look at Southeast Asia for example, aside from Thailand, most currencies in the region have weakened right alongside the dollar, and sometimes even more. This means that the dollars buying power has stayed roughly the same, or even increased in countries like Laos, where your dollars will actually buy 23.3% more foreign currency (Lao Kips) than they did 5 years ago.

Mexico and Central America are another good example of a region that has largely followed along with the weakening of the dollar. Many currencies in this region are already pegged to the dollar, and those that are not still rely heavily on the US market for trade, and consequentially have experienced a weakening in their currencies as well.

The Middle East, a region Americans often overlook when contemplating world travel, is largely pegged to the US dollar (for now). When the US dollar weakens, their currencies are automatically adjusted to keep relative buying power unchanged.

Obviously, there are many other factors that effect prices and buying power abroad. However, aside from extreme growth economies like China, India, Russia (energy boom), and perhaps Brazil, most countries have not experienced extreme increases in cost of living. So, if you can find a foreign destination where your dollars are still relatively strong, international travel doesn’t have to be any more expensive than it was 5 years ago.

The map above, and the chart below show how much your US Dollars will buy in foreign currencies today (Aug. 2007) compared to 5 years ago (Aug. 2002). A negative percentage means that your US dollars will buy that percent LESS than they did 5 years ago. A positive percentage means your US dollars will buy that percent MORE than they did 5 years ago.

For example, the USD has a % Change value of -23.1% for Britain. This means that your US dollars today will buy 23.1% LESS foreign currency (British Pounds) than they did 5 years ago.

• f - Local currency is fixed or pegged to the US Dollar
• re - Readjustment of exchange rate has accounted for weakening of currency relative to the dollar. Does not mean dollars the relative buying power of the dollar has significantly increased.

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