Don’t let exchange rates spoil 2014 for you
Fluctuating exchange rates during 2013 should be a warning about the dangers of poor planning to anyone sending money abroad in the New Year.
Rewind to January 1st 2013 and the exchange rate was £1/€1.23, but by the second week of March the pound had plummeted in value to a rate of £1/€1.14. This difference in the exchange rate meant that the price in pounds of a €200,000 property in the Eurozone increased by £12,400 between January and March, thanks to nothing more than the change in exchange rate.
The pound trod a rocky path against the euro for much of 2013 – hovering between £1/€1.18 and £1/€1.15 before falling to £1/€1.14 again at the start of August and then rising to £1/€1.20 at the end of November.
Against the dollar, the pound has had an equally rough ride, falling from £1/$1.62 at the start of January to £1/$1.48 in March, hitting a similar level again in July. As the year draws to a close though, the pound is hovering around a two-year high, back up to over £1/$1.63. Who would have predicted that? To a UK buyer, the fluctuating exchange rate meant a typical $200,000 property in Florida has varied in price also by around £12,400 over the course of the year, due to nothing more than the exchange rate.
So how do you minimize your exposure to the exchange rate?
Need you be at the complete mercy of the pound’s constantly changing value? The simple answer is to speak to currency specialist Smart Currency Exchange. They have ways of guaranteeing you an agreed exchange rate for a future transfer, whether it be two, six or twelve months in the future. This means you can plan a property purchase knowing the price of your overseas transaction won’t change between the point of having an offer accepted and completing the purchase. To add to that, Smart Currency Exchange consistently offer exchange rates that are 3-4 per cent better than those offered by high street banks when sending money to a foreign bank.
For more information and to help you safeguard yourself against currency fluctuations in 2014, download Smart Currency Exchange’s free report
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