The U.S. dollar is starting the year off strong, which is good news for travelers that earn in USD.

This week, we look at how the dollar is performing against 22 currencies in nomad hotspots.

This Week in Nomad Deals

🐫 Egypt Deals: A major currency devaluation has made Egypt historically cheap for travelers.

💰Currency Trends: The U.S. dollar notched small gains against most major currencies in the first quarter of 2024.

🚢Work from a Ship: Virgin Cruises is offering a monthlong Mediterranean cruise (price tag: $9,990 for two people) targeting digital nomads.

Egypt: The Best Travel Bargain of 2024?

Once upon a time, tomb raiders converged on Egypt in search of buried loot. Today, travelers are still flocking to Egypt — only now, they’re looking for bargains.

Egypt was already cheap last year, but now it’s even cheaper owing to the country’s currency woes. Earlier this month, Egypt’s government initiated a major currency devaluation, resulting in the U.S. dollar rocketing up over 50% vs. the Egyptian pound.

A few media outlets have already started reporting major bargains, including cocktails for under $3 USD and cheap tours. A Nomad Deals search of hotel prices unveiled a number of all-inclusive resorts available for under $100 USD a night.

While Egypt typically doesn’t rank as a digital nomad destination, if you’ve ever dreamed of that IG money shot in front of the pyramids, now is the time to do it on the cheap.

Spring 2024 Currency Trends Report

The U.S. dollar is back, baby (well, sorta).

In our year-end 2023 currency report, the USD put up a mixed performance. The dollar previously surged against several currencies, including the Argentinian peso, Turkish lira, and Russian ruble (and fell heavily against the Colombian peso, Mexican peso, and Albanian lek).

More recently, the market has bid up the dollar on expectations that the Federal Reserve will maintain higher interest rates. So far in 2024, the USD has notched modest gains against most currencies, as shown in the chart below:

Why currency trends matter for digital nomads

All things being equal, a strengthening currency results in more purchasing power. Knowing which currencies are strong or weak can help digital nomads choose destinations that offer a lower cost of living.

Imagine you earn in USD while the Turkish lira loses value. Your income goes further, allowing you to live comfortably or save more money. Conversely, if the Mexican peso rises in value against the dollar, your cost of living increases as the USD translates into fewer and fewer pesos.

The role of inflation in foreign exchange

A weakening foreign currency doesn’t necessarily mean that the country is getting cheaper. Recently, local prices in Argentina have risen much faster than the peso’s exchange rate with USD. As a result, digital nomads have been reporting that Argentina is less of a bargain than it was just a few months ago.