Be currency clever while the sterling is performing badly
Sterling has started the year badly, dipping below 1.20 against the euro for the first time in nine months and being named the worst-performing currency in the G10.
For Britons buying or selling a home in the eurozone, this could be a good time to set rates, either to hedge against future falls or to take advantage of the euro’s strength against sterling. A contract agreeing an exchange rate for the future provides peace of mind for anyone anxiously watching sterling’s ups and downs. Foreign exchange experts World First (worldfirst.com) have seen a 211 per cent increase in enquiries for property-related transfers from those looking to buy in sterling and sell in euros in the past two weeks.
Today’s rates mean that anyone selling a €400,000 (£340,600) property in the Eurozone would make an additional €25,000 (£21,287) profit than if they had sold six months ago. Foreign exchange companies offer the opportunity to fix a rate in advance so that whether you plan to buy or sell you know exactly what rate you will get.