For expats moving abroad for the first time, or those that have been offshore for a while, moving money across borders is often of primary and pressing concern.
Making sure that you are getting the very best exchange rate available is highly important with tiny swings in the rate translating to huge differences in value.
Richard Musty, expatriate banking director at Lloyds TSB International said, “Many expats don’t consider the effect that currency fluctuations can have on their money if they have income in one currency and need to make payments in another. Yet, with our research showing that 34 per cent of expats make overseas transfers at least once per quarter and 18 per cent transferring at least once a month, currency fluctuations can cause problems for a lot of people."
It is easy to demonstrate the impact interest rate fluctuations can have on expats transferring significant sums of money after a house sale for example. Someone transferring £200 000 to the Eurozone in July at a rate of €1.29 to the pound would have €256 000 post transfer.
However, this week that rate is now €1.24 causing that £200 000 to be only worth €248 000, a difference of €8000 due to interest fluctuations alone.
Expats should seek out one of the many companies offering currency transfers to obtain the best rate.