Many people who send money to Australia are paying more than they really need to in fees. UK high-street banks can often charge costly transfer fees and offer low exchange rates, despite many people believing their services to be fee-free.
Need to send money to Australia?
According to the Office for National Statistics, in 2017 there were 138,000 Australians living in the UK. A large number of those may have friends, family or business interests back home, or have second homes or holiday property in Australia.
They may want to send money home to make overseas mortgage payments, to fund a family wedding back home or to pay business suppliers. And then of course there are Brits who are considering emigrating to Australia to start a new life or to retire there. Moving funds abroad would mean a currency exchange into an overseas bank account, which many people don’t have — hence the use of international money transfers.
The best way to send money to Australia
International money transfers are usually the best value for money. With UK high-street banks charging up to £30 per transaction, sending money online with specialist foreign currency transfer companies is consistently the cheapest way to send money abroad or back home. Being able to manage it 24/7 on an app or via a secure online platform can make it the most efficient and convenient way of doing it. One way to protect yourself from future currency volatility is to lock into a prevailing exchange rate for up to two years by using forward contracts, which may require a deposit. This means that regardless of any upturns or downturns in the market, you’ll know exactly how much your overseas transfer is costing you.
But I’ve been with my bank for years...
If you transfer funds abroad with your bank it is likely to cost you more both in fees and exchange rates —and you may require a bank account in both countries. With specialist transfer companies such as Telegraph International Money Transfers, there are no transfer fees when sending more than 120 currencies worldwide.
The Australian dollar
The Australian dollar is one of the major currencies of the world and is relatively stable. It is highly tied to equity and commodity markets, and because of Australia’s close trading ties with China, its value changes depending on China’s economy. The exchange rate between the Australian dollar and sterling has been impacted by Brexit recently. The rate stood at 2.04 AUD to the pound on 25 May 2016, four weeks before the European Union Membership Referendum, but as of 8 January 2020, it had fallen to 1.90 AUD.
Australian dollar to US dollar
Against the US dollar, the AUD was steady in the first year of President Donald Trump’s administration. The Reserve Bank of Australia (RBA) has made some clear policy moves during the coronavirus pandemic that have affected the rate. The RBA not cutting interest rates, for example, kept AUD/USD mildly positive, with a high near US$0.6130 to 1 AUD.
What has affected the Australian dollar lately?
Australia’s commodity export prices have a major impact on how much the country exports versus how much it imports. The Australian dollar is tied strongly to the US dollar, and since falling to a low after the commodity crash in 2015, it has recovered well in spite of the US dollar falling 9 per cent in 2017 — partly because of Australia’s strong domestic economy and a boost in employment figures in autumn 2017.
Strength of the Australian dollar
Because the Australian dollar is so reliant on commodities, it has suffered during the coronavirus pandemic of 2020. It responded well to the $2 trillion US stimulus package from the Trump administration, because of its ties with the US as another trading partner. Its geographical proximity to the Asian markets, and China (where Covid-19 originated), has caused it to head lower because of news coming out of those countries, with President Trump often sending the Australian dollar on a downward spike from press conferences and announcements.
Purchasing Managers’ Index readings also tend to influence the Australian dollar, as does the services PMI.
Historically, 2016 and 2017 featured tremendous electoral volatility in Europe, of course, and in the UK, Brexit led to the Australian dollar gaining a lot of strength for a year or so until sterling settled after the UK General Election in June 2017, with a boost from the Bank of England interest rate rise. Increasingly, it is one of the major Asian currencies – with the Japanese yen and the Chinese yuan — that may have an effect on the Australian dollar.
Save money with no transfer fees when you make an international money transfer
Whether you need to send money to Australia, to pay off an overseas mortgage or to fund a property purchase, you could save money with Telegraph International Money Transfers.
- How efficient is it? Turnaround is fast and you can set up a payment plan for regular outgoings such as mortgages, student fees or pension payments.
- What help do I get? You also get free expert guidance from a personal account manager all the way through the process.
- How secure is it? A secure online platform is available 24/7, meaning you can send payments whenever you need to.
Don’t let expensive fees stop you from sending money abroad by using the Telegraph International Money Transfer service.
moneycorp is a trading name of TTT Moneycorp Limited and is authorised by the Financial Conduct Authority under the Payment Service Regulation 2017 (firm reference number 308919) for the provision of payment
The above article was created for Telegraph Financial Solutions, a member of Telegraph Media Group. For more information on Telegraph Financial Solutions, click here
Information correct at date of publication.