For the past three months the pound has been trading in a relatively narrow band against both the euro and US dollar. The reason is simply that the currency markets don’t know which way to move and are not willing to take a risk.
The problem, of course, is Brexit. The road map that could take us to various possibilities is quite clearly laid out, whether that is a new, more Brexiteer Prime Minister replacing Theresa May and forcing through a harder Brexit, or General Election, or a confirmatory referendum and no Brexit. Or something in between. Each possibility is so well balanced at the moment that taking a significant position on either would be a risk.
Risk, is where we come in. Smart’s speciality is risk management. Whether you’re running a business or just have a major purchase abroad, we can, working with you, remove the risk. Here is how it works.
Firstly, you decide what you want to do and how much you can afford. For example, buying a Spanish holiday home, for which you have a budget of £125,000. You give us a call on 020 7898 0541 and we will discuss the amount in euros that you will get for your £125,000 today. (I should point out, that compared to the past two years, today’s EUR/GBP and USD/GBP rates are pretty good.)
Your trader will also explain the likely events that will determine what the rate will be for the year ahead. As already explained, your trader can tell you the possibilities, but without a crystal ball they cannot accurately make a prediction of what will happen.
So if you are definitely resolved to buy that home in Spain, to ensure that your £125,000 will be enough when you come to pay, you lock in your rate with a Forward Contract.
To do that you pay a 10% deposit, and you have complete piece of mind that you can pay for the property when the buying process is complete. Forward Contracts are increasingly popular for those serious about buying abroad in this time of uncertainty.
So do please call your trader as soon as possible, on 020 7898 0541.
