With sterling struggling against other currencies, it’s important to take a long, hard look at the financial implications of your currency exchange choices, says Hannah Beecham
Arecent survey showed that up to 11 million brits are considering a move abroad, which is a massive proportion of the UK population. The chances are you’re reading this because you’re one of that number. In which case, here’s my top tip to stand you in good financial stead when you decide to make the dream a reality: pay close attention to currency exchange movements and calculate what a move, in either direction, will do to your day-to-day budgeting.
And if anyone needs a wake up call, consider the following. Two years ago Europe was paying you €1.46 for your £1, but today you’d collect just €1.09. Thinking of heading off for a life down under? Today, your pound will buy you A$1.65 – two years ago it would have fetched A$2.37. Fancy Thailand? A pound bought 64.52 baht 24 months ago, but is exchanged today for little more than 49.
And, no, there isn’t a pundit anywhere who’s suggesting that sterling is on the verge of a major renaissance. So, if you’re moving abroad you’ll need to keep pace with the going rates. Make a little time to research the relationship between sterling and the currency you’ll be jangling in your pocket in the years ahead.
If, in order to make your move, you are selling a house in the UK, think hard about what you’ll do with the proceeds from the sale, and when you’ll transfer these into your new currency. Would it be better to keep your cash in sterling for a while in case the exchange rate improves? Or do you have to convert it now in order to buy bricks and mortar abroad? In the latter case you must find out where you can make the exchange with least damage in the conversion process. Compare a handful of regulated foreign exchange brokers to ensure you get the best service and the best price. Fees will differ between brokers but you can be fairly certain that these will be lower than the currency exchange tariff of any high street bank.
If you need to maintain money ties in the UK, you must continue to cast a watchful eye over the economic indicators such as trade imbalances and interest rate movements which might affect exchange rates, and significantly widen the gap between your new currency and sterling.
On a brighter note, if you’re already established and working in a new country you’ll be earning the local currency, so start saving. When you next visit the UK, you can convert those savings back into sterling – and a conversion this way around means your spending pound will go that much further!
Hannah Beecham is Managing Editor of the first comprehensive online financial channel for British expats.
www.expatmoneychannel.com
Arecent survey showed that up to 11 million brits are considering a move abroad, which is a massive proportion of the UK population. The chances are you’re reading this because you’re one of that number. In which case, here’s my top tip to stand you in good financial stead when you decide to make the dream a reality: pay close attention to currency exchange movements and calculate what a move, in either direction, will do to your day-to-day budgeting.
And if anyone needs a wake up call, consider the following. Two years ago Europe was paying you €1.46 for your £1, but today you’d collect just €1.09. Thinking of heading off for a life down under? Today, your pound will buy you A$1.65 – two years ago it would have fetched A$2.37. Fancy Thailand? A pound bought 64.52 baht 24 months ago, but is exchanged today for little more than 49.
And, no, there isn’t a pundit anywhere who’s suggesting that sterling is on the verge of a major renaissance. So, if you’re moving abroad you’ll need to keep pace with the going rates. Make a little time to research the relationship between sterling and the currency you’ll be jangling in your pocket in the years ahead.
If, in order to make your move, you are selling a house in the UK, think hard about what you’ll do with the proceeds from the sale, and when you’ll transfer these into your new currency. Would it be better to keep your cash in sterling for a while in case the exchange rate improves? Or do you have to convert it now in order to buy bricks and mortar abroad? In the latter case you must find out where you can make the exchange with least damage in the conversion process. Compare a handful of regulated foreign exchange brokers to ensure you get the best service and the best price. Fees will differ between brokers but you can be fairly certain that these will be lower than the currency exchange tariff of any high street bank.
If you need to maintain money ties in the UK, you must continue to cast a watchful eye over the economic indicators such as trade imbalances and interest rate movements which might affect exchange rates, and significantly widen the gap between your new currency and sterling.
On a brighter note, if you’re already established and working in a new country you’ll be earning the local currency, so start saving. When you next visit the UK, you can convert those savings back into sterling – and a conversion this way around means your spending pound will go that much further!
Hannah Beecham is Managing Editor of the first comprehensive online financial channel for British expats.
www.expatmoneychannel.com
