Smart Weekly Currency Note - 27th February 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 27th February 2009

Currency Rate Last Week Rate This Week EURO 1.123 1.127 US$ 1.443 1.429 CAN$ 1.805 1.812 AUS$ 2.236 2.222 NZD 2.821 2.842 AED 5.302 5.252 CHF 1.664 1.668 ZAR(Rand) 14.576 14.372 Charles's Thoughts: Another false dawn for sterling started this week as news regarding the re-structuring of RBS, one of the many ailing UK banks, improved confidence in the financial sector and lead to broad gains against most major currencies. However, by close on Tuesday sentiment had turned against sterling and the UK banks thanks to reports of business investment having fallen steeply in the last quarter of 2008. Sterling fell further later in the week thanks to weak UK GDP figures that gave further evidence of a worsening recession in the UK. All of this combined with a poor reception to the government’s ‘Asset Protection Scheme’, which will aim to protect the major banks’ against £500bn of toxic debts with tax-payers’ money meant that overall it was a bad week for sterling although sterling did steady on Friday and made marginal gains against the euro and the US$. Regardless of how bad US economic data turns out, the seemingly invincible US$ goes from strength to strength thanks to the flight to quality phenomenon which continues to keep risk averse investors invested in the US$ for lack of any other desirable or safe-haven assets available. All significant US data this week – the house price index, durable goods orders and annualized GDP figures were all worse than forecast but the effect on the value of the US$ was minimal. This over-pricing of the US$, and all of the currencies that move with it (AED, HKD etc…), will doubtlessly have some undesirable effects for parts of the US economy, such as making exports less competitive, but is something of a barometer for just how much uncertainty is still felt in the global markets. The euro experienced a mixed week gaining marginally on sterling but losing ground against the US$. With troubles from last week regarding the debt of eastern European states subsiding and the prospect of a cut in interest rates from the European Central Bank already felt as a certainty the lack of other news to drive the euro down allowed the single currency to stabilise. However, there is still a sense in the markets that the lack of drastic action to stimulate the stalling economy by the powers that be has left Europe further behind in the cycle of the global recession and this may lead to a prolonged euro weakness through 2009 and 2010. There were no major developments regarding the high-yield and/or commodity backed currencies. 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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