Smart Weekly Currency note - 13th February 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 13th February 2009

Currency Rate Last Week Rate This Week EURO 1.145 1.116 US$ 1.473 1.435 CAN$ 1.828 1.772 AUS$ 2.192 2.186 NZD 2.787 2.755 AED 5.413 5.273 CHF 1.724 1.666 ZAR(Rand) 14.276 14.158 Charles's Thoughts: Sterling started positively largely thanks to news last Monday that Barclays Bank had posted much better than expected annual profits. However, news regarding the re-structuring of Russian corporate on debt on Tuesday drove market sentiment against sterling and back into favour the safe-haven assets such as the US$ and the Japanese Yen. This in turn lead to a trading day loss for sterling of approximately 2.5% against the euro and the US$. In spite of this, figures which showed UK unemployment to have increased for the twelfth consecutive month and the Bank of England's quarterly inflation report which contained suggestions of a deep recession ahead and the potential need for quantitive easing did little to harm sterling midweek. By Friday sterling did show signs of a small rally but these were limited by news of more problems from the UK banking sector and a 40% drop in Lloyds TSB shares. The US$ is still benefiting from the flight to quality and investors low appetite for high-risk assets. The push and pull over President Obama's huge bail-out plan with the US Senate seems far from over despite finally being passed. Support from the republican contingent was never likely to be easy and until the finer details of the plan are released the air of uncertainty will continue to affect the markets. However, the risk appetite may grow following comments from the US government on potentially subsidising mortgage payments. There was little in terms of significant market data from the Eurozone until the end of the week. Figures showing a large fall in European industrial production on Thursday were compounded by Euro GDP data which showed European economies to have contracted further in the fourth quarter of 2008. Specifically, the German economy contracted by 2.1% over the same period - its largest ever quarterly fall in the modern era. This will likely encourage speculation towards a cut in interest rates of at least 0.5% when the European Central Bank next meet in March. There were no major developments in the high-yield and/or commodity backed currencies this week. 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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