Citigold, Citi’s personal banking and wealth management service, has seen a significant upward trend in the use of multi-currency banking and is encouraging its clients to consider such accounts as a way to lock in the recent improvement in sterling ahead of the holiday season.

Citigold said it has seen an 18 per cent increase in people taking up multi-currency accounts and a 24 per cent increase in those balances. Around 30 per cent of clients now hold at least one non-sterling currency account, Citigold said, with US dollar and euro-denominated accounts being the most popular choices.

“Sterling has been struggling in the past few months but has recently reached its highest level since October against the US dollar and since December against the euro,” said Dominic John, head of Citigold.

“Opinions on where sterling will go from here vary, but people can reduce the risks by planning ahead and buying US dollars or euros and putting them into current or savings accounts in those currencies.”