US Dollar may have just started to turn
This is a quick notice to let you know that the US Dollar has just started to turn in value against other major currencies. Time for action, if you are looking to buy Dollars at some point soon.
If you have USD, this could be the time to sell dollars and buy into GBP, Pounds Sterling, or Euros.
GBP: USD. In May 2010, the USD was worth $1.43 to £1. It was trading this morning a £1.5970 to £1.
However, the Dollar has started strengthen. It has gained about 2 cents in a day. Good time to buy dollars? Likely!
Here is a chart showing the recent performance of the Pound against the dollar.
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EUR:USD. In december 2009 you could buy €1.50 for every $1. during 2010, the EUR strenghened against the Dollar to around €1.21 to every $1. Recently, the dollar has strenghened against the euro to around €1.32 to $1.
Today, it looks like the dollar is strengthening after a sustained period of losses. Here is a chart demonstrating the recent downturn in value of the dollar against the euro. What has happened today, is an about-turn, and the dollar is strenghening.
The main message?
- If you have a large amount of Dollars… do something! If you want to buy your currency ahead of time, you can. With just a 10% deposit, you can fix the usd rate now, and pay the balance at a fixed point in future but keeping the current rate.
- If you want to buy, or sell, Dollars, talk to one of our currency dealers and they will set a rate at which they will contact you so that you can buy your Dollars at the best price possible.
The easiest way to look at this is; if you need to change your money at some point and you need to achieve a certain amount, then you have these options:
- Exchange all of your Dollars at today’s rate. This is called a SPOT Contract. It ensures that you fix the rate today and you get your money transferred, to where it needs to be, in good time.
- Exchange some of your Dollars and risk the exchange rates going in your favour by the time you need to have the rest of the money changed. This is HEDGING in its simplest form. It does mean you can sleep at night, safe in the knowledge that you’ve made sure you don’t lose too much if the rates don’t go your way.
- Exchange your Dollars, at today’s exchange rate, with just 10% deposit. Then pay the balance when you need the money in the future. This is called a FORWARD Contract. This is the way that most of my clients are now exchanging their money. By paying just a 10% deposit, our clients can relax, safe in the knowledge that they have the right amount of money for their property purchase.
Of course, this doesn’t just apply to Dollars. It applies to any tradeable currencies.
If you have any questions on exchanging your currency, please call 0044 (0)1480 474517 or email me here
Worried about the state of the Pound?
How will the low Pound value, against the Euro, affect International Estate agents?
Over the last week, we have seen the pound decline in value against the Euro. This has started to affect sales that estate agents have agreed some time ago.
Buyers are pulling out of the deals claiming that the Pound has lost so much value, that the properties they agreed to buy, some time ago, will now cost them many more pounds.
This was avoidable. Sadly, many clients chose to ignore good advice to fix the rate at a given point some months ago when the rate was around 1.17 euros to 1 Pound. They are now faced with getting around 1.08 Euros to a Pound. When put into context, with a house purchase of 200,000 euros, that´s a difference of 14,245 British Pounds!
Your buyer will now have to choose between:
- finding the extra money
- buying another property that´s 14,250 GBP cheaper
- pulling out of the purchase altogether
What can Global Currency Exchange Network do about this?
There´s nothing we can do about the current exchange rate, but we can help by:
- constantly reviewing the rate and calling your client as soon as it rises sufficiently to mitigate the perceived loss
- register the clients for what we call a “Limit Order”. This is an agreed exchange rate that the client will be happy to buy their Euros at. In this case, it could be 1.10 euros to 1 GBP. We then call the client as soon as the currencies hit this rate and they have the option to buy at that moment. (More on how we do this later)
- We register the clients for what we call a “stop-loss order”. This is a point at which the client has the option to buy the currency so that the loss doesn´t get any greater. Using this example, this could be set at 1.06.
How to avoid all of this in the first place?
If you send your clients to us as soon as you have them appointed, we can discuss with them ways to improve their current perceived value of the Pound against the Euro. Of course, we will offer a better rate than any bank. In addition to this, we don´t charge for the transfer or any commission.
Using this example of a 200,000 euro purchase, a bank is likely to offer a rate of 1.06 euros to the pound and we would offer 1.08. The bank is likely to charge a commission of 30 euros and a transfer charge of up to 60 euros. Finally, we have negotiated that the local banks in Portugal and Spain won´t charge their usual recipient fee of 1% (2,000 euros). This represents a difference in charges of 2090 euros PLUS a rate difference of 3494 pounds
So by using GCEN, your client would be likely to save 5346 Pounds.
Quite a difference and likely to create a more stable sale / purchase for you
One last way to avoid this:
If the clients are introduced to us early enough, we can offer what we call a “Forward Currency Contract”. This is ideal for everyone. The client will only have to part with just 10% as a deposit (20,000 euros in pounds equivalent). After that, they have fixed the rate and can relax as their only commitment is to part with the balance on the date when the currency deal matures. This is usually set for a month after the sale is anticipated to go through. The client can complete the deal early by sending us the balance money and the property deal can go through on time.
We´re here to help you with your sales. Feel free to call one of us anytime if you think we can help.
Alison in Portugal, Marie in Costa Blanca, Lucy and Emma in Mojacar.
Contact Zoe at Fx-foreignexchange
Contact Zoe at the UK Head office of FX-Foreignexchange: 0044 1480 458 400
To cretae a new account, or apply to become a foreign currency exchange affiliate introducer, just contact Zoe and she will discuss how we can help you, or your business.
Apply to become a currency exchange affiliate here.
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Strong Japanese Yen, take advantage now
With Sterling so weak, and the Japanese Yen so strong, it´s not surprising that GBP to JPY has seen some spectacular moves.
At one point yesterday it touched 139.75, making a fall of nearly 7 percent in a week! It has since bounced back up to 142.00.
The Bank of England Governor, Mervyn King, has made it clear in the press and by other public statements that he wants the Pound Sterling to move lower.
Economic releases today include August mortgage approvals at 09.30 BST and from the US we are expecting the July housing index at 15.00 BST.
Buy or sell Japanese Yen, JPY, at the best rates here with NO COMMISSION, and NO Transfer Charges.
Buying Thai Property, Currency Transfers
Buying Property in Thai Baht.
Buying Thai Baht at the best currency exchange rate is a relatively simple exercise. Call your broker!
However, buying Thai Baht at the best exchange rate in order to buy property in Thailand, as a foreigner. That’s not such a simple task. Choose a broker who understands the Thai property system, as there is a specific Act, the 1991 Condominium Act, which applies to non-residents who aim to buy a condominium in Thailand.
If a non-resident person wishes to transfer money into Thailand to buy a property there, they must obtain a Foreign exchange Transaction Certificate for each payment. This certificate comes from the beneficiary bank and every certificate will need to be shown to the Land Department in order to register the title of the condominium. As an aside, the currency exchange transfer instruction needs to state that it is for the purpose of buying condominium.
There’s a catch though. If you transfer money into Thailand for this purpose, you need to ensure that each currency exchange is for US$20,000 as a minimum, otherwise you would need to obtain a credit note from the bank instead.
Transferring money to Thailand:
1. The money must be T/T (Telex-Transferred), with a document identifying the name of the purchaser in the form of either the sender’s or receiver’s name. For example:
Mr. Jones wants to buy a condominium in Thailand. He has his own account at an overseas bank to buy the condominium, he has to instruct the overseas bank to issue the document in his name as the sender of that amount to his (savings) account in Thailand, or any law firm (with the permission from the particular firm) after which the appointed company will buy that condominium for him,
(or)
It is possible for the buyer to ask a third party to transfer the money for him to buy the property by identifying himself as the receiver. This could be done by using a currency exchange Company such as fx-foreignexchange, who would offer the best rates at that moment for buying Thai Baht and would then organise the money transfer to Thailand.
2. The purchaser has to include the transfer instruction indicating that the purpose of this money is to buy a condominium unit.
The bank that receives money in foreign currency will issue the document (Foreign Exchange Transaction) which contains the following information:
- The transferred amount in foreign currency
- The transferred amount in Thai Baht
- The name of money sender
In order to get the best currency exchange rate in Thai Baht, whether selling Australian Dollars, US Dollars, GB Pounds, AE Dirhams or Euros, contact the experts, Fx-Foreignexchange.com and they will quote the best rate for the Baht today.
+44 (0)1480 458 400
