Traditional shopping habits have been turned upside down this year as the coronavirus outbreak and lockdown restrictions necessitated changes to day-to-day routines.
We’ve had poignant proof of this in 2019, with heightened political uncertainty, US-China trade tensions and fears for a global recession rocking the currency markets to their core.
Radical shifts in the value of the pound are likely to continue as the UK faces the ominous prospect of a looming no-deal Brexit, concerns over the Irish backstop and a possible general election.
If your business needs to move money abroad in the near future, these capricious shifts in exchange rates can make it hard to time your transfer effectively.
In the last eight months, investor anxiety over Brexit has seen the GBP/EUR exchange rate trade in a range between €1.06 and €1.17.
For businesses, such notable shifts can lead to major discrepancies in their budgets.
If a UK business placed a €100,000 order with a European supplier in May they would have expected to pay around £85,000.
However, settling the invoice in August (just three months later) would have cost them £93,000 due to the drop in Sterling – a difference of £8000.
Moves in the currency market can sudden and unpredictable, but there are ways to keep track of the latest developments and transfer your funds at the right time – like our handy rate alert service.
How do rate alerts work?Simply log in to your online account and set the rate you want to achieve (or let us know over the phone) and we’ll let you know by text and email if the market moves to that level.
From there, you can either make your currency transfer online or over the phone, set another rate alert or call our team of currency experts to talk through your options.
According to our Chief Treasury Analyst Phil McHugh:
‘Many clients are busy getting on with their day-to-day business but would like to be aware if the exchange rate moves to a more favourable level.
‘A rate alert offers a great solution and allows the client to capture the opportunity, particularly in volatile markets.’
You can set a rate alert in seconds – and it could help you make significant savings on your next currency transfer.
Currencies Direct is one of Europe's leading non-bank providers of currency exchange and international payment services. Since we were formed in 1996, we've maintained our focus on providing innovative foreign exchange and international currency transfer services to corporations of all sizes, online sellers and private individuals. We have also expanded our services to provide dynamic and pioneering "business to business" solutions to help companies, tier 2/3 banks and other non-bank financial institutions to process their international payments. Our headquarters are in the City of London (United Kingdom) and we have operations in continental Europe, Africa, Asia, and the United States. Currencies Direct is jointly owned by private equity firms Palamon Capital Partners and Corsair Capital.