The Effect of Currency Exchange Rates on Expats28th December 2015
One of the critical issues that many expats need to deal with is the constant battle with the currency exchange rate movements. With more than 200,000 British expats living in South Africa, large sums of money are transferred between the two countries and between the South African Rand and the British Pound. Many of the British expats have their different needs, some will want to transfer their overseas pensions, servicing mortgages or move overseas income.
The best way to protect yourself against the volatility of currency exchange rates is to plan ahead of time and look out for the best deal on exchange rates with minimal transfer fees. A last minute deal it will always be more costly at an unfavorable exchange rate. In order to minimize the negative impact of currency exchange rates you can always reduce the frequencies of money transferred from overseas, if you currently withdraw money on a weekly basis, you can change that and do it on a monthly basis or ideally, even less frequently. Not only that you may end up with better deals, but at the same time you’ll considerably reduce the added costs of transfer fees.
This is not a set in stone rule, because you can always increase the frequencies of money transferred from overseas when the currency exchange rates is in your favor. However, even with the current favorable currency exchange rates, there is still more that you can do in order to secure and get a better deal. Often, expats use banks to transfer money which can be detrimental to your own business, especially if you want to transfer large sums of money.
Without a doubt, the most cost-effective method to transfer money is to use a Currency Broker. There are a number of attracting benefits to go through this route, like low transfer fees or even no fees at all on regular transfers; better currency exchange rates which should save you quite a lot of money.
Currency Brokers are not just a cheaper way of doing business, but they are faster, too. This is a better way to send money around the world more quickly and efficiently. On a £100,000 deal you can save up to 4% or £4,000 by going through a currency Broker just on the exchange rates alone, but if you take into consideration the lowest transaction fees the deal becomes even better. Another option when using a Currency Broker is the possibility of using a forward contract which gives the buyer the obligation to purchase a currency at a set price at a future point in time, fixing the exchange rate up to 18 months in advance. This is another great way to protect your hard earned money against the uncertainty and the volatility of the currency markets.
The complexity of living a life as an expat presents extra challenges when taking into consideration the currency exchange rates. An expat life is different than ordinary lives and transferring money from one country to another requires you to manage the volatility in the currency markets, which many times can be confusing, however, if you follow the easy steps recommended in this article regarding your currency exchange needs your life not only can become much easier but you’ll end up saving quite a lot of money in this process.Share: