Ask the Currency Experts
Not sure about the best approach for your international money transfers? A Currency Expert will help you establish a transfer strategy that will save you time, money and hassle. To speak to Currency Expert – contact us.
Whatever your reasons for making an international transfer – overseas property, repatriating investment returns, pension transfers, all are subject to currency market fluctuations. Our currency solutions can lock in an exchange rate for up to 2 years, allowing you to protect against currency market fluctuations. Giving you peace of mind.
Events within the UK and around the world have the potential to cause exchange rate fluctuations, which can quickly erode any buffer you may build into your calculations when making an international money transfer. For example, when EU Referendum results announced pound sterling dropped 12% against the US Dollar.
Thankfully Hawk FX has a solution, called a forward contract, which will protect against adverse currency market movements by locking in an exchange rate for up to 2 years. For example, when buying an overseas property, your costs would be unaffected if there were adverse movements in the currency markets.
Forward contracts are ideal for situations when exchange rates are volatile, so you do not lose money to unfavourable currency market movements between now and the time you need to make your payment.
The table below shows how small changes in the rates of exchange can cost thousands.
Currency market volatility can have a dramatic effect on your international money transfers. For example, when making a transfer to France from the UK, converting pound sterling to euro, the currency markets move as we have seen in recent times the losses would be thousands of pounds!
| Exchange Rate | £50,000 | £175,000 | £225,000 | £500,000 |
| 1.1945 | €59,725 | €209,038 | €268,763 | €597,250 |
| 1.2168 | €60,840 | €212,940 | €273,780 | €608,400 |
| 1.2864 | €64,320 | €225,120 | €289,440 | €643,200 |
| A loss of | €4,595 | €16,083 | €20,678 | €45,950 |
A currency market expert at Hawk FX will help you manage your exposure to currency market volatility.
Not sure about the best approach for your international money transfers? A Currency Expert will help you establish a transfer strategy that will save you time, money and hassle. To speak to Currency Expert – contact us.