Currency Considerations

  • It's fairly safe to say that last week's events came as somewhat of a surprise to most... the US President-Elect is Donald Trump.  But even with this news, the consequences for the US Dollar didn't seem to materialise to quite the effect that had been expected.  Indeed, in terms of the immediate effect on currency, it is not hugely dissimilar to the Brexit issue.  Some forecasters had predicted dire consequences for the GB Pound against the Euro following a 'Leave' vote, and although it has certainly weakened against the Euro, it's not at parity (...yet?)

     

    What's the current situation for those with a dream to move or purchase property abroad?  Well, we are currently sitting at a better rate than February/ March 2013, certainly no worse than August of that year and are streets ahead of July 2011 - which incidentally is when I bought my property at a rate of 1.1050!  My point being, is that for anyone who has had the idea or has been planning a life in the Med for a few years, the current exchange rate available is comparatively not that bad - so long as you use the best options available to you in order to move your funds.

     

    Things to think about if you are considering transferring money from GBP-EUR (or any tradable currency for that matter) whatever the reason for the transfer may be, should include:

    • How much to move
    • When are the funds needed in the required currency
    • What rate is being offered
    • How much will the transaction cost

     

    As an example, if you need to move £10,000 to Euros today, you would probably be offered an exchange rate by your bank of around 1.10, and then charged an International Transfer Fee of anything up to £40.  This would give you €10,960

     

    If you were to do the same thing through a specialist currency broker such as Premier FX, you would be looking at a rate of 1.1550 with no transfer fee applicable.  This would give you €11,550

     

    That's a saving of €590!!!

     

    Use the same calculations whether you are planning to buy a property or making small but regular transfers... the savings soon mount up.

    In addition to this, it is possible to secure an exchange rate for payments due in the future.  With a small refundable deposit (usually 10%), you can protect yourself against adverse movements in the rate.  This means that a Euro transfer set for completion in anything up to 2 years' time will still cost you the same in GB Pounds as it would now, even if the exchange rate falls lower during that time.

     

    For a no-obligation comparison on your next transfer requirement, or to have an informal chat about your future currency needs, please don't hesitate to contact me at:  sev.edmundson@premierfx.com or on 0034 971 576 981

     

    Premier FX is authorised and regulated by the UK Financial Conduct Authority and this can be verified on the FCA website at www.fca.gov.uk  Our firm's reference number (FRN) is 530712