Smart Weekly Currency Note - 20th February 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 20th February 2009

Currency Rate Last Week Rate This Week EURO 1.116 1.123 US$ 1.435 1.443 CAN$ 1.772 1.805 AUS$ 2.186 2.236 NZD 2.755 2.821 AED 5.273 5.302 CHF 1.666 1.664 ZAR(Rand) 14.158 14.576 Charles's Thoughts: All in all it was a quiet week for sterling with few significant events or data releases to move the markets. Having kept within a steady range against the US$ and edging up by a couple of cents on the euro over the week, a period of stability is perhaps a positive given how volatile exchange rates have been over the last eighteen months. The positives for the UK economy were better-than-expected house price figures and retail sales. However, the Bank of England revealed in the minutes from their last meeting on interest rates a unanimous vote in favour of quantitive easing to stimulate the economy. This promise of printing more money to increase supply from the lending banks did not cause any immediate harm to sterling's value but may not be looked upon favourably should this policy be enacted in the difficult months ahead. An equally quiet week for the US$ started on Tuesday with the markets closed for Presidents day on Monday. For the first time in fifty years US inflation reached 0% in January as 'price increases' on fuel and many other US staples disappeared given the US$'s consistent strength on the global markets. The US$ maintains a strong level against all major currencies thanks to the safe-haven status it has shared with the Japanese Yen and Swiss Franc in these unpredictable times. Major concerns regarding some of the EU's newer member states' commitment to the single currency as well as the exposure level of their banks to the global credit crisis resulted in a tough week for the euro. Reassurances offered by the German finance minister that these (mostly Eastern European) states could be bailed out by the Germans and other more developed EU members, helped alleviate these fears and limit the damage done to the euro. The Polish Zloty has been one of the previously emerging markets currencies that has suffered of late and subsequently has reached its lowest price against the euro for approximately 5 years. Of the high yield and/or commodity backed currencies there were few major developments, although the Canadian dollar did lose ground across the board due to concerns of a deepening recession and an investor preference for the less-risky US$. 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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