How to lock in exchange rate
By purchasing your card in a foreign currency (eg Euro) you can lock in the current exchange rate and take advantage of good exchange rates when the Aussie Dollar is strong – or know that you won’t lose out if the Dollar is falling. The cards are available in US Dollars, Euros, UK Pounds, New Zealand Dollars, Canadian Dollars, Japanese Yen, Hong Kong Dollars and Singapore Dollars plus Australian Dollars for all other destinations. More currencies are on the way – the next currency set for launch is Thai Baht.
Check out American Express Traveler’s Cheques. I have used them in the past, and I actually did take some with me to Hawaii just this past September. They seem to be making a comeback! Not every clerk in the store will know what they are though! I did use them on Maui, and at one place, the waitress didn’t have a clue what I was talking about, but the bartender did, and I just went up there to pay my bill. You will need your ID ready to use them.
If you are planning on making a large purchase abroad in the coming months, such as buying a property overseas, you may have been holding off the purchase of your currency – well, now may be the time to fix the exchange rate.
Following its positive gains against the major currencies in the first half of May, the pound has weakened in recent days on the back of a gloomy assessment of the UK economy by the Bank of England Governor Sir Mervyn King alongside renewed prospects for more quantitative easing.
Trying to time the market is notoriously difficult, especially when currencies are as volatile as they are at present. For example, earlier this month the US dollar was at $1.62 to the pound, but has now strengthened to around $1.58 you can try here. The euro has been fluctuating, reaching nearly €1.26 to the pound on May 16 (its highest level in over three years), but has recently strengthened to around €1.24.
The currency market can be unpredictable, with exchange rates changing by the second. Transacting when rates are in your favour can make a big difference, and timing is crucial. That’s where we come in.
A forward contract allows you to lock into an exchange rate for a period of up to two years. This means that if exchange rates do move against you, your rate – and therefore property purchase or transfer – remains unaffected.
Track a rate
Once you have a moneycorp account, you can sign-up to receive an alert via email or SMS for when a currency reaches your chosen rate.
You may also decide on a spot contract, which allows you to use the current exchange rate for your money transfer. There is no need for a deposit, but you need to pay us before the currency is due to be paid to your recipient.