Elaine FergusonA common aspect of life as an expat is transferring money between countries. You obviously want this to be as cost-effective as possible, so it is important to do your research and keep an eye on what’s going on in the currency markets, to be sure you can get the best possible exchange rate and avoid market risks. Currency markets are often affected – either adversely or positively – by global political and economic events, and 2015 has certainly been an eventful year in this respect!

Most recently, events in China have had a notable ripple effect on the European currency markets, ultimately eating away at your money. This week, Elaine Ferguson, Head of the Resource Centre at
Spain Buying Guide, talks to currency experts, Smart Currency Exchange, about what this means for expats in Fuerteventura and for those who have plans to move over here.

“Financial markets looked as if they were beginning to recover following China’s decision to cut interest rates; but the rate cut failed to stop the continued fall of the Chinese stock markets, causing further drops in European markets and swings in the global foreign exchange market. With everything going on globally, financial markets are currently in a fragile state, so it’s even more important to speak to a specialist about how all this can affect your currency transfers,” says David Comber, Senior Trader at Smart Currency Exchange.

“This year has been great for expats and British buyers in Spain, with a number of significant political and economic events steadily strengthening sterling against the euro. As well as the continued uncertainty surrounding Greece, the introduction of Quantitative Easing (QE) in the Eurozone in January and the UK General Election result in May allowed sterling to gain over 10% against the euro within the last six months.

“But nothing is certain in the currency markets, and with ongoing uncertainty in global markets, the GBP/EUR rate fell from 1.438 to 1.394 in the last month. To give you an example of what this means for your money, if you were buying a €300,000 property on Fuerte, it would have cost £ £208,623 in mid-July, but a month later would cost £215,208 – a loss of £6,585 in only one month!”

“Alongside this,” adds Elaine, “the Spanish economy and property markets are strengthening – good news for those already living here, but a warning bell for those looking to bag that bargain property on Fuerte! Now may be the time to buy or make any bigger currency transfers, before the euro potentially strengthens further and as house prices throughout Spain and the Spanish Islands continue to rise.

“If you are planning any large payments, or wanting to set up regular payments between Fuerte and the UK, it is worth assessing the different solutions available to you and talking it over with a currency specialist. There are a number of different tools you can use, such as a Forward Contract, which lets you set the rate for future payments at a time when it is favourable, thereby avoiding the risk of exchange rate fluctuations in uncertain markets.”

“Working with a dedicated currency specialist like Smart Currency Exchange will help you to understand the currency markets and keep you up to date on what this means for all your international payments and investments.”

OBG-SpainWritten for Fuertenews.com by Elaine Ferguson, Head of the Resource Centre and country specialist at SpainBuyingGuide.com. For more information about emigrating to, buying property, or life as an expat in Spain, click here or call +44 207 898 0549.

SmartDavid Comber is a Senior Trader at Smart Currency Exchange. If you want to hear more about how Smart Currency Exchange can help you get the most from your money when making transfers to Spain, you can give them a call Freephone on +44 808 163 0102 or register online at smartapplyonline.com

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