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International money transfer confusion on a rise

THE POLITICAL instability across the globe has been increasing at a staggering pace over the past year. In the USA, you have unpredictable Donald J. Trump who was surprisingly elected for office. In Russia, Putin is pulling off some dangerous tricks against his American counterpart, as a result of newly approved sanctions. Angela Merkel is up for elections this year, and Emmanuel Macron who was just elected in France is facing some difficult issues concerning its sovereignty as a secular state .

The world’s greatest powers are all at a crossroads, and UK is in a tougher spot than them all. With a Hard Brexit, London may lose its lucrative status as the financial capital of the world.

As a result of that a lot of people, and particularly wealthy expats and immigrants, are let wondering in regards to international money transfers.

Political instability has an imminent relation to large-scale upswings and downswings in a currency’s value. The pound exchange rate has dropped by 20% against the U.S dollar in the months following the Brexit, and dipped even more against the Euro in 2016. This is more volatility than the average person is willing to suffer, especially if has payments or investment abroad.

We asked Matt Di Vincere, editor at MoneyTransferComparison.com, the international money transfer authority, for his tips for our audience.

1) If you know you know you are supposed to make an large international payment anytime soon, you can book a Forward contract, which will lock in the current rate in exchange for a premium (and a 10% upfront deposit of the funds). This instrument is normally unavailable at banks for private clients, so it is best to seek international money transfer specialists as the ones listed on moneytransfercomparison.com.

2) If all your affairs are done domestically in Sterling, with the exception of hopping over to France and Spain here and there, there is no reason for concern on your behalf. As a result of the pound’s weakening imports may become more costly but it’s out of your hands anyhow.

3) If you are trying to beat the market by moving your savings between currencies, you are bound to lose. The market’s expectations are already well priced into the current foreign exchange rates, and the costs of moving money between different currencies is vast.

4) Instead of moving your money in between currencies, you can choose overseas investments with low currency exposures (like certain ETF’s).

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