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You may be surprised by the ripple effect that world politics can have on your personal currency transfers. Even seemingly small events can have a significant impact. It really pays to know how to plan and take action to mitigate any currency movement so that it goes in your favour and doesn’t leave you counting your losses.
We asked Calum Harkiss, Business Development Manager at Currencies Direct, one of the most trusted names in international money transfers, to explain the steps you can take to protect your hard-earned money when it comes to currency transfers. With more than two decades of experience and a top-tier credit rating, Currencies Direct have helped thousands of buyers make the most of their money – especially those purchasing properties abroad.
How politics affect currency transfers
“You might think headlines matter, but it’s not just the big events like a general election that affect currencies around the world. Policy changes, tariff updates, bi-election results, unexpected employment figures, recessions, even a politician’s offhand comment can cause rates to jump or plummet,” says Calum. “If you’re in the process of buying a property abroad, those shifts can quickly add or subtract thousands from your budget. And considering it typically takes around three months to complete a property purchase in France, that’s a long window during which you’re not in control of what can happen to your money. But there are ways to ensure you are protected against these sudden movements.”
One way to help mitigate your potential loss is to sort out your currency rate in advance.
“When you sign up with Currencies Direct, you’re not just given an account – you’re assigned an account manager, a real human expert. Someone who watches the markets every day, who understands how political news might affect exchange rates, and who can help you plan your transfer to your advantage. They keep you informed, flag key movements, and help you act when the timing is right, and they’ll advise you on steps you can take to try to achieve and protect the rate you want.”
“For instance, you could use a forward contract – basically, you pay a small deposit to secure a rate of exchange that Currencies Direct agree with you for a future date. Let’s say you’re planning to buy a house, and today’s rate is good, but you’re not ready to make the payment yet. Well, you can instruct your account manager to exchange at that rate that suits you on that day, protecting you from falls in the future. When you consider that the buying process in France generally takes at least 3 months, a lot can happen in that time, with political changes seemingly daily. You can also set a target rate, if you think that the rate might rise in a couple of weeks, for example, your account manager will watch the rates and help you strike when the market hits your preferred level.”
A big part of what currency specialists do is hidden; they analyse everything from trade agreements to interest rates, significant events, and small events they know can have a wider effect. This helps them anticipate currency fluctuations to guide their clients and secure better rates.
“As soon as you start your property search, start talking to a currency expert – it costs you nothing and can save you heaps”, Calum advises. “You’ll also save money on bank and transfer fees, plus our experts can get much better rates than traditional banks.”
For most of us, currencies are just a numbers game, but behind it all is a world of shifting economies, politics and forecasts. If you leave your money to chance, you could easily end up with less than you hoped. A surprise currency swing can make an enormous difference to what you pay for your dream home in France.
Find out more and speak to an expert at currenciesdirect.com
The post Protect your currency transfer exchange rate from politics appeared first on The Good Life France.
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