Speak to the experts for great exchange rates and fee-free online transfers
It's been an unsettled summer for sterling. Back in July, it seemed that the pound could do no wrong.
A stream of encouraging economic data emanated from the UK. Upbeat employment figures, strong PMI readings and a statement from the Governor of the Bank of England, Mark Carney, which suggested that interest rates could rise sooner than expected, sent the pound soaring against its major counterparts. It reached a five-year high of $1.71 against the US dollar and a two-year peak against the euro at nearly €1.27.
However, it seems that the market hadn't priced in the possibility of a ‘yes’ vote in the Scottish independence referendum. Until recently, that is. After closing at $1.66 against the dollar on the 1st September, sterling dropped to $1.60 on the 9th September after polling by YouGov showed a marked increase in support of the Yes campaign. The pound also weakened against the euro, tumbling from highs of €1.26 to €1.24, despite gloomy economic reports from the Eurozone.
Such foreign exchange market uncertainty can be a concern for people or businesses sending money overseas. Whether you are transferring funds abroad or sending money back to the UK, getting a good exchange rate is vital to making your money go further. CityAM International Payments, powered by Moneycorp can help. The service offers competitive exchange rates, fee-free online transfers and expert market guidance.
With CityAM International Payments you can typically expect a better exchange rate than you might receive from your bank. Typical exchange rates are 3-4% more competitive than those offered by high-street banks. So on a transfer of £200,000, you could save as much as £8,000.
As recent events have shown, in times of market uncertainty it’s important to seek guidance before sending your money overseas. Each Moneycorp client is assigned a personal account manager, a foreign exchange expert, who will take the time to understand your currency requirements and offer specialist guidance on the tools available to protect you from market fluctuations. For example, the recent changes in the value of the pound could have a major impact on your overseas transfers, especially if you are sending a large sum abroad for a property purchase or to support yourself if you're emigrating.
If you are buying property abroad, you might hope to negotiate a price which is 1-2% below the listed value, but a turbulent foreign exchange market could make a much greater difference to the cost of your new home. For instance, if you are planning to buy a $450,000 home in the United States – on the 1st September, with the exchange rate at $1.66, the house would have cost about £271,000 in sterling terms. But fast forward to the 9th September, with sterling worth around $1.60, that very same home would cost about £281,000 – a difference of £10,000 in just over a week.
Fortunately the experts at Moneycorp are on hand to help. They might recommend a ‘forward contract’, which can be used to fix an exchange rate for a period of up to 24 months. Locking into an exchange rate provides certainty over your budget. For a property purchase, where there can often be a delay of several months between signing the paperwork and completing the purchase, this can provide peace of mind. If you know you can afford to buy your dream home at today’s exchange rate, using a ‘forward contract’ ensures that you will be able to afford to buy when it’s time to complete, irrespective of what happens in the foreign exchange market.
In addition to great exchange rates and service, CityAM International Payments also charges low transfer fees. Your bank might charge as much as £40 every time you send money overseas, but as a CityAM reader you won’t pay anything for online transfers and transfers made over the phone cost just £15.
If you use CityAM International Payments to send money overseas, you can rest easy knowing your money is in the safe hands of Moneycorp, which handled 6.4 million transactions last year, trading more than £10 billion in more than 150 currencies. Moneycorp is authorised and regulated by the Financial Conduct Authority for the provision of payment services and has been dealing in foreign exchange since 1979.