International Money transfer

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With the majority of restrictions finally behind us, many of us will be enjoying the long-awaited freedoms of a return to normality. However, with a level of economic uncertainty still to be expected, a currency specialist could help you protect your finances while you get back to doing what you love. Why do exchange rates change?

Both economic and political factors can greatly influence the currency markets, causing rates to ebb and flow with little warning. When it comes to making an international payment, depending on when you make it and which currencies you're exchanging, you could find your funds subject to market volatility and, therefore, vulnerable to losses. During times of increased economic uncertainty, such as the course of both Brexit and the pandemic, the pound may experience increased fluctuation, though there are a number of factors, from events to weather, that can cause shifts one way or another. For this reason, being proactive with your international money transfers can help you save.

How exchange rates can affect your payments

When the exchange rate moves, the amount you pay or receive also changes in line with that movement. This means that if the rate moves up or down by the time you make your payment, you may find that the price has risen in your currency, costing you more than you expected. When dealing with larger transfers, even a slight rate change can end up costing you a great deal more. If you were to buy a property abroad at €500,000 with the exchange rate of €1.16, then the cost of the property in GBP would be £431,034. However, if you were completing the purchase in three months' time when the rate had moved slightly to €1.10, then the property would now cost £454,545, meaning you lose £23,510, possibly sending the purchase out of budget.

How to protect your payments from market movements

A currency specialist such as moneycorp can help you protect your payments from market fluctuation and get the most out of your money. If you’re happy with the current exchange rate, whether you’re making a payment now or in the future, you can fix the rate for up to two years with a forward contract (this may require a deposit). Or, if your sights are set higher, you can set a target for your ideal exchange rate, which means that we’ll alert you if and when your rate is achieved so you can make your payment without missing out. In addition, our team of dedicated foreign exchange managers can help you navigate the fast-moving currency markets. On top of this, you’ll enjoy great exchange rates and low transfer fees, saving you time and money on each and every payment. Speak to one of our specialists today to open an account or discuss how Mail Finance Money Transfers can assist with your international payment needs.