After last month's meeting on interest rates JC Trichet, president of the European Central Bank (ECB), stated that he would not consider further cuts to European interest rates until the month of March, so adopting a less aggressive stance to monetary policy. As a result of this and other large issues plaguing the European economy, the euro fell against the pound and the US$ reaching its lowest value in two months this week. Although the European economy is thought to be behind in the cycle of the credit crunch, this apparent evidence of inaction by those in charge of steering the continent through the crisis is beginning to result in a loss of confidence in the euro's future.
Against the high-yield and/or commodity backed currencies sterling enjoyed a positive week on the whole. Australian interest rates were cut and a new multi billion dollar stimulus package announced which helped the Australian dollar make gains across the board and throughout the week. Data showing a much larger than expected increase in Canadian unemployment saw the Canadian dollar fall sharply on Friday afternoon.
Why is Currency Management So Important? Using a bank could cost you £3-4,000 per £100,000 transferred. Buying at the "wrong" time could cost you many £'000's more as rates can move as much as 3% in a very short period of time. Then add in transfer costs that the banks charge for sending and receiving funds and you could be looking at additional costs of £10,000 per £100,000 transferred. By developing a currency strategy and by working with a specialist currency broker these losses could be minimised if not eliminated.
Smart Client Testimonial: "Thank you for making our transactions go so smoothly. As promised, our account was opened within hours. Your traders were pleasant and efficient, and each transaction was very much at the exchange rate I expected...ie not a million miles away from the inter-bank rates and certainly much better than my high street bank could quote. All in all, an easy experience and we will have absolutely no hesitation in recommending your services to any of our friends buying property abroad." Ian Pritchard
If you haven't opened a Smart account yet, call me on freephone 0808 163 0102 or fill out our online Account Form at: http://www.SmartCurrencyExchange.com/application.htm
How much will a Property Cost? To estimate the cost of a property simply DIVIDE the price of the property by the appropriate rate noted above. But note this is based on the inter bank rate so the actual cost will be slightly more.
Charles Purdy
Smart Resources
Currency Strategy Worksheet
Need help creating a Currency Strategy? Download our Currency Strategy Worksheet:
http://www.smartcurrencyexchange.com/downloads/CurrencyStrategyWorksheet.pdf
Currency Report
Have your read our 10-page Currency Report that outlines the top 3 mistakes that overseas buyers make when exchanging and transferring their money overseas? Get the report here:
http://www.SmartCurrencyExchange.com/downloads/ThreeMistakes.pdf
Currency Quotation
Are you interested in a currency rate for Euros, US$'s, CYP, NZD, or any other currency, please fill out our Smart quotation form at: http://www.SmartCurrencyExchange.com/smartquotation.htm
