The pound to euro rate has settled down into a level around 0.5% lower than in the middle of this month and a fraction down on the start of the month. However, it remains close to 3% up on last year against the euro and US dollar.
To lock that rate in for a period of time of your choice, speak to your account manager on 020 7898 0541. We are coming up to a period of Bank Holidays, so why not get your finances sorted out before the end of tomorrow and avoid the rush? When the pound’s current stability ends, it could be with a bang.
One of the longest periods of stability for exchange rates – apparently for 30 years – is all based around the lack of movement on interest rates. Central bankers in Europe, the USA and our own Bank of England are waiting to see what happens with inflation. Most are wary of attempting to polish up the economy by lowering borrowing costs and risking letting the inflation genie out of the bottle again at the same time.
While such little movement on exchange rates doesn’t offer much to write about on a Wednesday morning, it is exactly the situation that we suggest is better for our clients.
Violent swings in exchange rates make budgeting impossible. You probably wouldn’t make an offer on a house in your own country if you knew the price would fluctuate by 5 or 10% before you came to pay. Or accept that your pension or other wealth transfer overseas will be entirely at the mercy of external forces minute by minute.
But that is the situation if you simply accept the rate available on the day rather than being proactive and locking in a rate for the year or so ahead.
So do please give your account manager a call, and have a happy and peaceful Easter.
