The pound may have fallen in value since the Brexit vote but there are still ways to make the most of your money abroad
The pound’s fate appears tied to Brexit
After Theresa May failed to garner enough support to push her initial withdrawal agreement through parliament, the sterling rose 0.05% against the dollar. Now as she prepares to renegotiate the Irish backstop despite firm resistance from Brussels, this could mean further instability for the pound. As the market outcome remains uncertain, it may be wise to take steps towards protecting your budget when making international payments.
Check the exchange rate
Every provider will offer a different margin on the exchange rate. Currency specialists may provide better rates than the high-street banks that don’t specialise in currency services. Even a fraction of a percentage point on the exchange rate can affect how much currency you receive for your sterling.
Calculate the total cost
High-street banks often charge up to £40 per transaction so, if you make a regular monthly payments, it could cost you an extra £480 each year. It’s worth shopping around for the best rates and lowest fees to calculate the overall cost of making an international payment.
Make sure you get a quote for the total cost because attractive headline rates are less appealing if you end up paying higher fees.
Monitor the market
Currency markets are difficult to predict but there are tools to help you keep track of the exchange rate. You can receive alerts if the pound’s value changes, or you could use a market order to exchange currency automatically when a specified rate is reached. A forward contract allows you to fix a favourable rate for up to two years in advance, although this may require a deposit.
Currency specialists will share their expertise and offer guidance on events that could affect the exchange rate. There are no guarantees when it comes to political uncertainty but predicting market volatility could help you change your approach and save money.
Telegraph International Money Transfers
We’ve teamed up with currency specialists moneycorp to bring readers Telegraph International Money Transfers. With expert guidance and specialist currency tools at your disposal, you will also benefit from great rates and low fees. moneycorp’s advisers will demystify the process surrounding international payments so you can transfer money in confidence.
To make transfers at great exchange rates, why not join the 10,000 Telegraph readers already sending money overseas with Telegraph International Money Transfers?
moneycorp is a trading name of TTT Moneycorp Limited, which is authorised by the Financial Conduct Authority under Payment Service Regulations 2017 (reference number 308919) for the provision of payment services.
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Information correct at date of publication.