Moving overseas? Currency fluctuations will affect your move!

Volatility in the foreign exchange markets has increased dramatically in recent times – a good example being the significant drop in the value of the Pound to Aussie Dollar. As recently as October last year, the Pound was buying 2.58 Australian dollars, however, since then the rate has fallen considerably and is now exchanging at around 2.20.

Let us look at how this may affect a migrant who sold their house mid last year. Assuming they received GBP 150,000 from the sale and converted those funds in October at an exchange rate of 2.58 they would have received AUD 387,000 to help fund their new life in Oz. On the flipside though, had they held onto their Pounds and transacted over the last few weeks they would have received only around AUD330,000, a difference of $57,000AUD!

You may be asking yourself the question at this point - what can I do about managing this volatility?

Whilst the migrant is at the mercy of the market when it comes to currency fluctuations there are a few things that can be done in order to maximise the amount received in Australia.

Using the above example, the migrant who received GBP 150,000 from the property sale could have locked in the exchange rate in advance of actually starting their new life “down-under” using a Forward Exchange Contract (FEC), thereby ensuring that they received the rate of 2.58 and saving themselves AUD57,000!

Similarly, if you are keen to take advantage of the recent depreciation in the value of the AUD relative to the EUR or USD, you can lock in a FEC to ensure that when the time comes to move to Australia you will know how much Australian dollars you will have available to you rather than being at the mercy of the market.

The other benefits of using OzForex to transfer funds abroad include:
- extremely competitive foreign exchange rates over 17 currencies
- online access 24/7
- access to a dedicated Corporate Dealer by phone 24 hours a day, 5 days a week
- complete pricing transparency
- no transaction fees for amounts over GBP3,000
- no receiving bank fees in most countries
- risk management tools through Limit Orders and Forward Exchange Contracts
- exchange rate alerts via email
- access to their highly regarded daily and weekly Market Commentary

To speak to an OzForex accredited dealer about your foreign exchange requirements call 1300 300 424 (local calls) or +61 2 8667 8000 or register online. Registering with OzForex is FREE and you can view their live dealing rates immediately. As a client of LIVE IN australia.com, you will receive your first two transactions fee FREE.

(extract from article by Jim Vrondas, Corporate Desk Manager, OzForex)