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Currency Exchange

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I run a currency exchange company and if you have any questions regarding currency exchange for buying properties abroad please do not hesitate to contact me. As I am writing this those who are buying with Euros seem to be at an advantage as the Euro seems to have weekened in the past couple of days. Today being November 10th. The US Dollar continues to strengthen and if the FED continues its interest rate policies it is likely that the dollar will continue to strengthen, this argument is based on interest rate differentials. The US Dollar has strngthened significantly since beginning of the year where it reached a low of 1.94 against GB pound now it stands at 1.74 that is more than 10% appreciation.

Ofcourse all these have ramifications for buying of property as buying currency at the right time could add or reduce thousands to any property purchase.

If you have any questions please do not hesitate to contact me. email. faz@capitalifx.com

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I run a currency exchange company and if you have any questions regarding currency exchange for buying properties abroad please do not hesitate to contact me. As I am writing this those who are buying with Euros seem to be at an advantage as the Euro seems to have weekened in the past couple of days. Today being November 10th. The US Dollar continues to strengthen and if the FED continues its interest rate policies it is likely that the dollar will continue to strengthen, this argument is based on interest rate differentials. The US Dollar has strngthened significantly since beginning of the year where it reached a low of 1.94 against GB pound now it stands at 1.74 that is more than 10% appreciation.

Ofcourse all these have ramifications for buying of property as buying currency at the right time could add or reduce thousands to any property purchase.

If you have any questions please do not hesitate to contact me. email. faz@capitalifx.com

John has just emailed me asking about the benefits of forward contracts. Here is a quick explanation of what forward contracts are in layman's terms. A forward contract is a contract to exchange a specific amount of one currency for another on a future date at a predetermined rate. This is mainly used by businesses to guarantee that there is no price difference for a service or product that they will provide into the future. For example if you have a business selling imported products through catalogues and you produce the catalogue every six months you have to fix your prices for those six months. Therefore, you fix your currency rate for six months ensuring that you do not lose if the exchange rate goes against you.

The same goes for purchases of properties. You have budgeted Lets say £100,000 to buy your property in three months time and you cannot afford anymore than the £100,000, so you fix your rates for the next three months by buying a forward contract.

There are pros and cons to this form of transactions. The pros being that you are sure that you will get the rate you asked for in three months. The cons are that forward contracts tend to have greater spreads than those of Spot rates and can be expensive depending which institution you buy them from. Also the currency rates may go in your favour if you hold off a little longer.

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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