Smart Weekly Currency Note - 23rd January 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 23rd January 2009

Currency Rate Last Week Rate This Week EURO 1.120 1.061 US$ 1.483 1.364 CAN$ 1.850 1.701 AUS$ 2.206 2.090 NZD 2.720 2.586 AED 5.450 5.015 CHF 1.661 1.586 ZAR(Rand) 14.850 14.031 Charles's Thoughts: In another poor week for economic data sterling fell across the board as concerns for the health of the UK financial sector and the depth of the current down-turn persisted. On Monday the biggest names in British high-street banking all announced record losses. RBS share price fell approximately 60%. The newly proposed bail-out plan put forward by the UK government at the start of the week was intended to encourage the major banks to start lending again having seen little improvement in credit availability since interest rates had been slashed to historic lows. However, the initial reception of the package was clearly negative and confidence in UK business fell further. Remaining under pressure later in the week due to an increase in UK unemployment as well as evidence of the economy contracting 1.5% in the last quarter of 2008, sterling dropped to near record low levels against the euro and its lowest price against the US$ in almost 30 years. No respite for sterling. There was very little in terms of significant US market data in what will be remembered as an historic week for the USA. The inauguration of Barak Obama as US President dominated headlines as a new wave of optimism swept through the blue half of the American populous. The monumental task facing the relatively inexperienced President of rescuing the US economy from the jaws of a massive recession will be, by popular opinion, the president's toughest test as leader of the free world. We wish him well. Marginally better-than-expected business confidence data was one of the only highlights in a quiet week for significant Eurozone economic data. Despite positive gains against sterling the euro fell approximately 4% against the US$ over the course of the week. Competing European exporters are concerned with the unfair advantage that UK exporters have thanks to sterling's current weakness and this will apparently be a topic for debate in the next G7 meeting. There was little to report regarding the high-yield and/or commodity backed currencies this week although interest rates in Canada were cut from 1.5% to 1% as its economy braces itself for a significant downturn over the coming year. 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 Smart Currency Exchange Limited

email: Charles@SmartCurrencyExchange.com free phone: 0808 163 0102 web: http://www.SmartCurrencyExchange.com

Smart Currency Exchange | 1 Lyric Square | Hammersmith | London | W6 0NB | UK © 2005-2009 Copyright  Smart Currency Exchange Ltd THIS PUBLICATION DOES NOT CONSTITUTE ADVICE WITHIN THE TERMS OF THE FINANCIAL SERVICES ACT (OR ANY SUBSEQUENT REVISIONS, ADDITIONS, OR AMENDMENTS). Disclaimer Exchange rates can move very quickly. The above rates are the interbank rates and valid at a moment in time. The interbank rate is the rate at which the banks deal with each other in the foreign exchange markets. Suggestions should not be taken as advice or fact. The market does what it wants to do.  We have no crystal ball and as ever we suggest that if an exchange rate works for your budget then don't try and wait for an even better exchange rate, as Murphy's Law says the rate will go against you and cause you maximum trouble!

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