Currency Exchange Spain | Best Currency Rates Spain | Live Euro GBP Exchange Rate | - News, Information, and Guides on Finance Matters in Spain

Making overseas property purchases

If you are buying a property overseas for personal use or a business venture, you will be paying for it in a foreign currency and will therefore need to be aware of foreign exchange rates and fluctuations in the currency markets. Such fluctuations can easily be 10% or more in a relatively short space of time and were such a movement to be against you, this would add 10% to the amount you would pay for your property.

Transferring mortgage and pension payments

If you are making regular payments from the UK, perhaps to pay a overseas mortgage or transfer your pension payments, you are no doubt aware of the costs. Charges can soon add up, including uncompetitive exchange rates, transfer fees and commission charges.

Other money transfers

Whatever the reason for transferring funds overseas, and however much money you are sending, Moneycorp can buy or sell foreign currencies on your behalf and arrange for your funds to be sent anywhere in the world.

Market experts are always on hand and will help you to get the best exchange rates available.
They offer a variety of tools to protect you from the uncertainty of the currency markets.
You will have your own Account Manager, who will get to know your requirements.
They use the most efficient, reliable and secure payment methods.
Transfers can be arranged in seconds, on the phone, online or even automated by Direct Debit

FX dealing, hedging and international payment solutions

Moneycorp offer informed and intelligent foreign exchange dealing, hedging and international payment solutions for businesses around the globe.

Provided by their qualified team of currency market experts and supported by the latest information and pricing systems, secure online international payment platforms and back office technologies, they ensure that companies undertake their foreign exchange transactions in the most cost-effective and hassle-free manner.

Dedicated dealing and Account management team, offering the best prices and expert guidance.
Hedging strategy tools such as foreign exchange options, forward contracts and market orders.
Additional cost savings in areas such as transfer fees and receiving bank charges.
Dealing and fast, secure international payments either online or by telephone tailored to you.

Managing financial risk

Money offer two key services to help companies manage financial risk. Whatever your requirements, their experts will work with you to deliver a service that is tailored to your specific business objectives.

A foreign exchange hedging service for businesses looking for a consultative approach to implementing effective and cost-efficient foreign exchange hedging strategies. This service is provided by their team of qualified currency market experts.
An independent financial risk advisory service which helps businesses to identify, evaluate and manage financial risk, whilst the actual execution of risk management strategies is undertaken by third parties

What sets Exchange Rate ?

A currency's exchange rate is its price in terms of another currency. Most major currencies – the pound, dollar, euro and yen for instance – are 'freely floating'. This means their exchange rate is determined by market forces, by the levels of supply and demand on the international markets.

So what factors affect this?

Interest rates
A higher interest rate means a better return on bonds, gilts and other Government securities and will, therefore, tend to attract financial capital from overseas. Sterling must be purchased in order to buy these assets. So, if UK interest rates go up – or more importantly, are expected to go up – the pound will tend to strengthen against other currencies, and vice versa.

Economic health
Institutions tend to move investments out of weakening economies and into ones perceived to be strengthening. So an economy whose indicators (like growth, inflation and debt burden) are positive tends to see more demand for its currency and see its exchange rate strengthen.

The pound has generally seen itself rated strongly against both the dollar and the euro in recent years, as its economy has done relatively well.

Foreign trade
Other countries must buy sterling in order to buy UK goods, so if there is a high demand for British exports (relative to our demand for foreign imports), the pound will tend to strengthen. Large trade deficits – as the UK has run in recent years – will tend to depress a currency. But it is a circular relationship: the exchange rate will also affect levels of imports and exports. If the pound is strong, UK exports become less attractive, and foreign imports more so.

Official interventions
Governments or central banks could intervene to prop up a currency – for political or economic reasons - by buying it on the international markets, or by raising interest rates. The John Major government in 1992 controversially raised interest rates by five percentage points and spent billions in a doomed attempt to keep sterling in the European exchange rate mechanism (ERM).

Shocks and speculation
Markets don't like unexpected news and because currency markets are very 'liquid' (shortages of a currency are very rare), exchange rates are prone to move quickly in response to surprises. Currencies are also traded as speculative investments in their own right, and expert brokers trade them according to how they think the market will move. But these trades in themselves will, of course, affect exchange rates.

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