The currency market is in constant flux, which can cause major headaches for anyone planning to transfer money to and from Spain.
So far in 2024 the pound to euro exchange rate has traded between a low of €1.15 and a high of €1.17.
While a couple cents doesn’t sound like a lot of movement, depending on the size of your transfer this could mean a difference of thousands.
For instance, if you were transferring £300,000 to buy a property in Spain, that two-cent change in GBP/EUR would amount to a €6,000 difference in the amount you receive.
Fortunately, there are steps you can take to protect yourself from currency volatility and get a great exchange rate on your money transfers to Spain.
In this article we will be looking at how the GBP/EUR exchange rate has moved over the past month and what steps you could take to protect your money from this volatility.
Transferring with a currency provider vs a high-street bank
While your bank may be your first port of call when it comes to transferring money abroad, you are likely to find it is more cost effective to use a specialist currency provider.
In addition to offering more competitive exchange rates, currency providers won’t charge you the extra transfer fees that are often tacked on by high street banks. Meaning you could see immediate savings.
A bank will also only allow you to perform a Spot Transfer, where your money is moved immediately at the current exchange rate. Whereas currency providers can also offer additional services and support to help you to maximise the returns on your transfers.
However, a specialist currency provider like Currencies Direct will offer a range of additional transfer options which can help protect your money.
For instance, a Forward Contract allows you to lock in an exchange rate for up to a year. It’s useful when the current exchange rate is strong but you aren’t quite ready to make a transfer.
By securing a strong exchange rate, you can budget knowing exactly how much money you’re going to get. And while you won’t benefit if the exchange rate improves, you will be protected from any negative movements in the currency markets.
Or if you have time to hold out for a more favourable exchange rate you may want to consider setting up a Limit Order. With a limit order you can target an exchange rate stronger than the current market level. You simply set the exchange rate you want to achieve, and your transfer will be triggered automatically if your target rate is reached.
How Currencies Direct can help
Currencies Direct offer excellent exchange rates, expert support, and no transfer fees. We also have an exclusive deal with CaixaBank which means you’ll never pay receiving charges in any Spanish bank.
Our dedicated currency experts are on hand to keep you up-to-date with the latest market movements, giving you all the insights you need to time your transfers effectively.
Currencies Direct is also fully licenced to operate as a currency provider within the EU. So you know your money is always covered by the relevant authority.
Pop into your local branch (we have over 20 dotted throughout Spain!) and speak to one of our friendly currency brokers or get a quote online to see how much we could help you save when transferring funds to and from Spain.
What’s happening in the markets?
Over the past month we have seen the GBP/EUR exchange rate strike both an 18-month high and a two-month low.
The pairing struck its best levels in the first half of March as some increasingly dovish signals from the European Central Bank (ECB) took their toll on the euro.
The pound then plummeted in the second half of the month after Bank of England (BoE) Governor Andrew Bailey declared that interest rate cuts are now ‘in play’ at future policy meetings.
Looking ahead, central bank monetary policy will continue to play a significant role in influencing GBP/EUR over the next four weeks as both the BoE and ECB deliver their latest interest rate decisions.
No immediate policy changes are expected from either bank, but any hints that they may begin cutting rates from June could place pressure on their respective currencies.
Staying up to date
Keeping on top of what’s happening in the currency markets is one of the key ways to avoid unfavourable exchange rate movements, as this can help you time your money transfers effectively.
Thankfully, you don’t have to spend hours poring over charts and tables to know what’s happening with exchange rates. You can sign up with a specialist currency broker – such as Currencies Direct – for free market updates and insights from their analysts.
With Currencies Direct, you can also set rate alerts. Simply set a target rate and they’ll let you know if and when the market reaches that level.
If you have a currency requirement coming up, get a quote now to find out how much you could save.
This a Spotlight Advertising Feature in collaboration with Currencies Direct.
