How much will I get for my money on holiday?

The immediate impact of a weakened pound is on holidaymakers heading to Spain and other destinations in the EU, but a collapse in the currency also has much wider implications for household finances.

At some UK airports, the pound has already been seen at worth less than a euro, and the same as a dollar. Sensible travellers know to buy their currency in advance online, avoiding the airport bureaux, which gives you better rates.

Should I change my money now or wait for sterling to recover?

A tough one. In July Sterling had its worst month since October 2016 as it lost 4.3%. But it could get a whole lot worse. With the political rhetoric as it is, a rebound in sterling much before the 31 October Brexit deadline now looks unlikely.

What other effects does a fall in sterling have on my finances?

Prices of imported goods in the shops – and that’s an awful lot of what we consume as a country – will have to rise. Those price tags on clothes in euros, sterling and other currencies? It won’t be long before they are adjusted again, with the price in sterling inevitably having to rise. There is a lag effect here – so the rise won’t be immediate, but it will flow through eventually.

Will interest rates go up to ‘save the pound’?

Historically, a sterling crisis usually prompted a rise in interest rates to encourage foreign speculators to hold the pound. But we’re now in very different territory. With the US and European central banks inclined to cut rates, there’s virtually a zero chance of a rate rise by the Bank of England.

Are there any winners?

Yes, tourists are the winners – just not British ones. Anyone visiting London this summer from abroad is finding it to be a top-value shopper’s paradise.

Patrick Collinson