Seeking the opportunity: Is now a good time to transfer funds?
Seeking the opportunity
Recently, the decline of the Euro has been attributed to lack of energy sources after world energy supplies have been cut off and inflation continuing to rise. As we move closer to the winter months, a lack of energy to heat homes, and the price for this continuing to rise in the Eurozone, the cost of living among other factors could drive the Euro even lower. As a result we have seen the Pound suffer considerably at times, meaning those looking to buy their property in France were finding their money wasn’t stretching as far. At our lowest rate in on the 15th June, the GBP/EUR exchange rate was at 1.1507. For a person buying a property in France for €300,000, this would have cost them £260,710. Around one month later and we are now seeing levels 1.19, meaning that same property would have only cost them £252,100.
This movement is very attractive for a property buyer in France, however, you must be aware that this is not always the case. The rate can move in any direction at any point, and this may not be in your favour. We have seen movements in the opposite direction in the past 6 months and so it is more important than ever that you are speaking to a specialist to protect your budget.
The role of a currency specialist
Using a currency specialist opens the door to a multitude of options for you. You have access to a competitive rate of exchange and the expertise of a currency specialist whose role is to help you plan your transfer to make the most of your money. They will understand your situation and support you by tracking the rate and guiding you on when is the best time to trade, making your money go further.
Here are an example of a few of the tools available to you and how they can benefit your exchange:
- Spot contract– A spot contract is an agreement between you your FX provider to exchange money and buy foreign currency at the present exchange rate. This is the most common and traditional form of currency exchange and is suited to addressing any imminent currency transfer needs you may be.
- Market order– With a market order you could target a rate of exchange and if that rate is then hit, we could either buy the funds for you automatically, or notify you for your permission to buy. With the same principle we can set up a limit order to protect your transaction in case the rate falls below a certain level. This suits those who have some time on their hands and are optimistic that the rate might improve within their time frame. One of the advantages of the market order is to ensure that the currency is bought at the desired level even if the market only touches that level very briefly – and this includes when the markets are closed for trading.
- Forward contract– This allows you to fix a rate of exchange up to two years in the future in advance of a payment. This tool is very popular among property buyers as it allows them to fix the whole price of the property ahead of completion giving them the peace of mind and the certainty of how much they are going to pay for the property. But it is also a great way to take advantage of a positive rate movement. (Please not forward contracts may require a deposit)
With a Platinum Trusted Service Award 2020 from independent review site Feefo and 40 years of experience in the industry, FrenchEntree has been recommending moneycorp for more than 15 years. During this time they have helped thousands of client planning the best way to pay for their property as well as supporting them afterwards with any further payment from paying bills, mortgages to repatriating UK pension payments for those who have retired to France.
Furthermore, we have worked with the same person at moneycorp for more than a decade! You might be familiar with her as she often writes for our FrenchEntree magazine. She has 13 years’ experience in foreign exchange, and is a qualified European lawyer with experience in European transactions. Mar will be happy to answer any questions or enquiries to support you through these difficult times
Opening an account is really easy and free of cost. You can register online or over the phone in a couple of minutes and for FrenchEntree there are no transfer fees in any payment.
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