Fri, 14 Sep 07
Britons emigrating abroad could collectively be losing as much as £900 million a year by relying on high street banks that are cashing in by offering unfavorable exchange rates, warns currency specialists HiFX...
Each year approximately 90,000 British families leave the
HiFX reports that a
Beware the dangers of currency fluctuation...
As well as falling victim to inflated charges on exchange rates, émigrés are also at the mercy of currency fluctuation as they are rarely able to transfer all their assets in one go. The time it takes to make a successful visa application and eventually move abroad can be anything from nine months to four years. During this time, exchange rate fluctuations can have a huge impact on a person’s future wealth because at various points during the process they will have to convert some or all of their assets into the local currency of the new country. For example, when moving £250,000 to
To illustrate the point, HiFX have considered money that might potentially be lost through currency fluctuation during the average time it takes to emigrate to the top three destinations for Britons moving abroad permanently -
Average time is takes to emigrate
Average amount of money transferred
Potential amount lost through currency fluctuation
9 -12 months
9.7 % over last 12 months
6 9 months
21% over last 9 months
3 4 years
27.4 % over last 3 years
Bodega added, What many people may not realise is that they have the option of ‘fixing’ the exchange rate or taking out a forward contract on the destination currency as soon as they have made the decision the move. Without doing this many wannabe emigrés are taking a huge gamble with their money. People need to seek proper advice at the outset from currency specialists, who are also usually able to offer a far better rate of exchange than the banks.
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