Britons 'baffled over euro rate'

The average Briton thinks £1 is worth four euros

The debate over whether the UK should join the single currency has failed to teach most Britons what the euro is actually worth, according to a new survey.

Eight out of ten people did not know the value of the currency, with the average person guessing that £1 bought four euros - and not the 1.49 euros they would actually get.

Some people thought £1 was worth 10 euros and in Scotland - recently shown to be most in favour of joining the single currency - the average person thought they would get seven euros.

Despite the poor results - from a survey of 2,000 people carried out for a foreign exchange company - the estimates were better than when a similar study was carried out last August.

Six months ago only 12% of people knew the value of the euro, compared to 20% now.

Greater confidence

Of those questioned for FX Currency Services 52% of women and 33% of men admitted having no idea about the sterling to euro exchange rate.

Despite their greater confidence, the average man with a view thought he would get 4.2 euros for his pound - compared to 5.78 at the time of the August report.

The average woman with an idea of the exchange rate said she would get 4.55 euros - compared to 9.31 in August.

Donald Mackenzie, managing director of FX Currency Services said: "Whilst we can be encouraged by the improvement witnessed in consumer understanding of euro conversion rates over the past six months, it is clear we still have a long way to go.

"With UK consumers believing they will receive well over four euros to each pound when they go abroad, we could well see some very disappointed holiday makers."