Case studies of types of currency exchange transactions.

Before we show the examples, you may wonder why you would want to buy your currency in different ways. Every person, and each business, has different needs, Our function is to best match those needs to the best type of transaction that gives our clients the best value from the currency exchange.

Some people just want to buy the foreign exchange NOW. That one is easy, just call us, we’ll quote you a great FX rate and you do the deal straight away. However, some people ( or businesses) would prefer to fix rates for some time ahead. Well, Global Currency Exchange Network can do that as well. It gives the client peace of mind, that the rate is fixed and they can’t lose on a difference of exchange rates between now and the time set for the future deal.

There are various types of foreign exchange transaction. To help you through the maze a little, here are some examples of various different types of deals our currency exchange dealers can do for you.

Spot Contract:

Mr Craven has just bought a property in Spain for EUR 145,950. His high street bank offered him an exchange rate of 1.245 Euros to £1GBP. We were able to offer Mr Craven a better exchange rate at 1.253. Mr Craven saved a vast £1167.60 just by using Global Currency Exchange Network.

Regular Monthly Payments:

Mr and Mrs Williams have retired to their villa in Lanzarote, but they need to pay a small mortgage payment of 500 Euro’s per month and they have a regular monthly pension paid to them in the Uk, but they need it in Lanzarote. The total of the two amounts is £767 GBP.

The High street bank offered to make the regular money transfer, but advised them that some payments could take up to 10 days. And, as it was a relatively small amount, they would charge for the transfer payment together. Couple this with the additional charge that the local bank would make for just receiving the money, regular monthly payments were not looking like a sensible way to make transfers.

Global Currency Exchange Network don’t charge for the transfers, we have arrangements with most banks abroad so that the receiving charges are waived and, in this case we were able to offer a much better exchange rate. During the course of a year, Mr and Mrs Williams were able to save over £900.

Limit order:

John has already bought his dream villa in Barbados. He loves it so much, he lives there most of the time! In order to sustain his lifestyle, he wants to exchange some Euro’s into US Dollars. However, the current rate of $1.585 to EUR 1 isn’t good enough. John isn’t in a rush to transfer the money, so he has asked Global Currency Exchange Network to put in a limit order to buy $25,000 when the exchange rate hits $1.61. John can now relax by his pool, secure in the knowledge that he will get the best deal and ‘Global’ will secure it for him as soon as the desired rate is achieved.

Forward contract:

Jacqui has decided to have a new villa built in France. The total amount of money that she needs to transfer from the uk is €456,000 for the day of the villa completion. However, completion isn’t due for another 12 months and Jacqui is concerned that the exchange rates between the GB Pound and the Euro will not change in her favour over the next 12 months.

In order to protect herself from fluctuations in the exchange rate, Jacqui has asked us to place a Forward Contract for her. This involved Global Currency Exchange Network buying her Euros for her at the price on that day, as a forward contract, at 1.278 EUR to 1 GBP. The price subsequently dropped to 1.234 EUR when she would have needed to exchange the money on the completion day.

Jacqui saved €18,240 ! Enough to buy a new car when she got to her new villa.

Stop Loss Order:

Simon regularly imports goods from America for his Ebay business at about $25,000 each time. The exchange rate at the time of placing his last order was $1.935 to £1 GBP. This equated to £12,920. However, Simon was convinced that the dollar would weaken. He wanted to limit the cost of his goods to £13,000 and still have the flexibility of possibly buying his Dollars at a much better rate.

Simon instructed Global Currency Exchange Network to put in a Stop Loss Order to buy €25,000 at the exchange rate of $1.923 / £1 GBP to fix the worst price he will pay to £13,000. If Simon is right and the rate changes to $1.96 / £1 GBP, he will have saved a great deal of anxiety by fixing the worst price to him, but also gained around $925 on the exchange rate.

Global Currency Exchange Network are a commercial currency brokerage, based in the UK. We care for other people’s money and save clients vast amounts of money daily by offering competitive exchange rates, with no commission attached. In some cases, transfers abroad are free.
For a fast, safe, service go to our site and first open a free account. We will then contact you to discuss how we can help. Alternatively, call +44 (0) 1480 406080.

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• Sterling hit a three-week high against a pressured euro on Friday, with the single European currency hurt by soft euro zone data.

• The pound generally remained weak after data on Thursday showed a record fall in UK house prices.

• Global Currency Exchange Network, bring you daily currency exchange rates. For currency conversion, and money transfers, go to our website to create a free money transfer account.

GLOBAL CURRENCY EXCHANGE NETWORK - DAILY CURRENCY NEWS

n.b these are just indication rates as of 8.30am on Friday 30th May 2008

Tags: Currency Exchange Rates, foreign exchange rates, money transfer

Is now a good time to buy foreign exchange?

For month’s now, the foreign exchange market has been a little nervous. With the right, professional, advice from a currency exchange expert, you can weather the storm.

As the whole Global foreign currency market is interlinked, an economic downturn in the United States can, and does, have an effect on the currency exchange rates between the US and wherever it does trade. As this is virtually every Country, the current economic downturn in the States has had detrimental effects on the Global economy. Equally, if the major lending bank in Europe hints that it will lower interest rates, as it just has hinted, then the Euro could weaken against the Pound.

While Global Currency Exchange Network don’t have a crystal ball, they can help to guide you through the maze and help to reduce the potential losses you make otherwise.

Is now a good time to buy?

Well, it depends on when you want the money available in another currency, and how much you can spare at the moment that the best foreign exchange rates are available.

Global Currency Exchange Network have a team of experienced currency dealers on hand to guide you through the process. In order to do this professionally, they will need some information. Particularly, the date when you need the foreign currency as they may be able to advise holding off buying the currency today. Sometimes, it’s better to buy currency at today’s price, but keep that price for a date at some time in the future.

This is particularly useful if you’re buying a property overseas and it won’t be built for another year, when you will have to make a large final payment. If you waited until the completion day to change your money, the foreign exchange rates may have gone against you, and in effect, the price will have risen by as much as
£10,000 when you make a comparison to the exchange rates from the previous year.
This system is just as useful to businesses. When a company decides to buy goods from abroad, they agree to pay in the currency that is local to the supplier. The rates on that day may give the business a potential gross profit on those goods of a fixed amount. If the exchange rates change in a negative way, between the date of ordering and when the business has to pay for them, the potential gross profit could be wiped out.

Most businesses hedge their bets by ordering the goods and fixing the exchange rate by asking Global Currency Exchange Network to ‘forward buy’ the foreign exchange for them at a fixed price. That way, they have peace of mind and relax, safe in the knowledge that the one thing that can’t change now is the exchange rate.

Global Currency Exchange Network are a commercial currency brokerage, based in the UK. We care for other people’s money and save clients vast amounts of money daily by offering competitive exchange rates, with no commission attached. In some cases, transfers abroad are free.
For a fast, safe, service go to our site and first open a free account. We will then contact you to discuss how we can help. Alternatively, call +44 (0) 1480 406080.

More articles on Foreign currency terms explained,   currency exchange for businesses

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Sterling fell on Thursday, extending losses against the dollar after a record fall in UK house prices provided more evidence that the domestic housing market is deteriorating.

British house prices fell 2.5 percent in May, the biggest drop ever, figures from the Nationwide Building Society showed on Thursday, heightening concerns that a property market downturn may transform into a crash and further weaken the economy

Global Currency Exchange Network, bring you daily currency exchange rates. For currency conversion, and money transfers, go to our website to create a free money transfer account.

Currency calculator. currency conversion. currency exchange. daily exchange rates.overseas pension transfers

GLOBAL CURRENCY EXCHANGE NETWORK - DAILY CURRENCY NEWS

n.b these are just indication rates as of 8.30am on Thursday 29th May 2008

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Sterling slipped against the dollar on Wednesday after a further retreat in oil prices from a record high and a surprisingly small fall in U.S. durable goods orders offered a broad boost to the U.S. currency.

Sterling edged up against the euro, which hit a session low after a Reuters poll showed that most economists still see the European Central Bank cutting interest rates from 4 percent.

Global Currency Exchange Network, bring you daily currency exchange rates. For currency conversion, and money transfers, go to our website to create a free money transfer account.

Currency calculator. currency conversion. currency exchange. daily exchange rates.overseas pension transfers.

GLOBAL CURRENCY EXCHANGE NETWORK - DAILY CURRENCY NEWS

n.b these are just indication rates as of 8.30am on Wednesday 28th May 2008

Tags: currency conversion, Currency Exchange Rates, foreign exchange rates

Sterling eased versus the dollar and the euro on Tuesday after weak data on Britain’s housing market was released during Monday’s public holiday.

GLOBAL CURRENCY EXCHANGE NETWORK - DAILY CURRENCY NEWS

Tags: Currency Exchange Rates

Sterling fell against the dollar today after better than expected UK retail sales figures the previous session had supported the pound, taking it to three week highs versus the dollar. But, economists said that even though the numbers beat forecasts they still painted a pretty lacklustre picture for the UK economy and thus for the pound.

GLOBAL CURRENCY EXCHANGE NETWORK - DAILY CURRENCY NEWS

n.b these are just indication rates as of 8.30am on Friday 23rd May 2008

Tags: Currency Exchange Rates

Getting the best currency exchange rate is easy when you know how.

Here are our top ten tips…..
1. Talk to a specialist currency broker as soon as you know you are going to need to purchase currency. That way you will have time to secure the best exchange rate.

2. Find a Company who where you can choose who you deal with. If you get on, the dealer will always be there for you.

3. If a Currency exchange company charges a commission up front, be wary. Try another broker.

4. Set a realistic target for your exchange rate. Your Currency Dealer should explain the general exchange rate trends to you, so you can choose when to trade.

5. Search the internet for the best rates. Be careful though, most sites quote the “Interbank” rate. None of us can buy at that rate.

6. Buy a “Forward Contract”, if you need the money in the furure and you can get a good rate fixed now. It saves a great deal of worry later.

7. Try to avoid buying currency at the lowest rate of the day. The difference can be significant and your Currency Dealer should help you with this.

8. Don’t be greedy, if your target exchange rate is available take it otherwise you could lose out. Don’t forget, the prices can fluctuate during the day.

9. Always get confirmation from your Currency Dealer that your monies have been sent.

10. Finally, using your bank could cost you a significant amount more and they cannot offer specialist guidance.
More information on currency exchange….

Tags: currency conversion, Currency Exchange Rates

Business customers- retain more profit from your overeas trade by using a currency exchange broker for your foreign exchange deals.Whether your company has been trading overseas for some time, or you are just considering the potential of trading overseas, you need to talk to a currency exchange expert.

There are many reasons why a business should trade overseas; maybe to import goods from India or China, to be able to retail in your home Country, maybe you may want to export goods but require payment in your home currency, but you can’t close the deal unless the exchange rate is favourable.
Whatever the reason, making the decision to trade overseas can involve risks and you should seek the advice of a currency exchange expert to find out how to make currency differences work to your advantage.

There are ways to manage the risk and when exposing your business to foreign currency rates, the fluctuations in local currency can have an impact on your profit margins. If changes in currency levels mean that its costing you more money to sell your goods abroad than you’re generating in profit, you may need to reconsider your strategy.

The best way to manage your exposure to the currency exchange rates, is to fix your rate of exchange for a reasonable period. This helps you to manage the risk and plan ahead:

· Get a fixed rate and period that suits your business model
· Look for competitive currency exchange rates - banks are often too high
· Go for currency exchange brokers that don’t charge additional commission
· Find somewhere that allocates a dedicated account manager to your business
· Manage your paperwork by appointing a broker on your behalf

Deal with Currency exchange brokers who a proven track record and have the experience to manage your regula business payments. The idea is to find a broker who works in unison with your business, so that you maximise your profits and they manage your currency exchange rate risks.
Managing your foreign currency payments and income is a full-time job, especially if you rely on overseas markets for a significant percentage of your turnover and profits. Rather than spending money recruiting someone to handle this for you, you should talk to a dedicated currency exchange business like Global Currency Exchange Network. We have the knowledge, expertise and buying power to get excellent exchange rates and fix them for up to 24 months - allowing you to plan a secure financial future for your business.

In addition, your dedicated broker will give you all the market information you need, provide help with payments in and out of your account, and won’t charge any additional commission.

To find out more about how we can help you, call David Osborne, Business Manager at Global Currency Exchange Network, on 0044 (0)1480 406080.

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Tags: business currency exchange, Currency Exchange Rates, money transfer, Regular monthly payments

Sterling hit a session high against the dollar today as UK retail sales figures were released. The figure was a weak figure, although not as weak as expected. The data added to expectations that the Bank of England may not cut interest rates in the coming months.

n.b these are just indication rates as of 8.30am on Wednesday 21st May 2008

Tags: Currency Exchange Rates, money transfer

What you need to have to make a foreign money transfer. Banks, and specialist foreign currency providers, need to have suitable details in order to make a safe money transfer from one Country to another.There are really just two main sets of numbers commonly required. These are the IBAN and the SWIFT numbers.

The IBAN,or International Bank Account Numbers, have been introduced to standardise the identification of bank accounts. The IBAN is not a new account number. Your existing bank code and account numbers will not be replaced, but additional characters will appear in front of them. IBANs improve the quality of information exchanged between parties involved in European cross border payments and reduce errors and delays.

An issuing bank provides IBANs to its customers who are likely to receive payments from abroad, or make money transfers outbound. The IBANs are derived from the existing domestic account numbers of the customer.

The SWIFT, Society for World-wide Interbank Financial Telecommunications, system is a computer-based message switching system used by most international Banks as a method of making overseas payments or transfers. The minimum information that is required to make a SWIFT transfer is the account number, the name and address of the receiving Bank and the name of the beneficiary. In addition, all Bank’s have a SWIFT code and if this is known for the recipient Bank, this should be quoted.

Making a money transfer abroad for the first time can seem daunting. Providing you provide your bank, or specialist currency exchange broker, with the correct recipient IBAN or SWIFT, then things should go smoothly. To save money and have a smooth money transfer, you may like to consider talking to Global Currency Exchange Network.

Global Currency Exchange Network are specialists in currency exchange. They don’t charge commissions, they have a special arrangement with banks in Spain to avoid expensive receiving charges and offer they best exchange rates. With an annual turnover in excess of £335 Million, they have the power to set the exchange rates very low.
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Currency Exchange - Foreign Money Transfers.

If you are buying property overseas, you will need to buy, and transfer, money. While currency is generally regarded as an afterthought, the fact remains you will need to consider how convert your existing currency to the one in the Country of your destination at the best rate available or you may lose out by thousands.

Almost a million Britons have chosen to emigrate to Spain alone. Most have chosen to emigrate for a better quality of life and to avoid the high taxes imposed on Britons who reside in the UK. However, quietly, there seems to be a reversal in the process at the same time. Expats, who have lived a broad for a few years, miss the family, prefer the healthcare at home, or just need a job more suited to their talents, all move back to the UK. Imagine this constant flow both leaving, and arriving, at the same time. All of these people have to convert their currency to and from the British Pound.

Changing your currency seems, to most people, an afterthought. It appears that most people just accept that the bank will take a commission. Because the currency exchange is done by quoting exchange rates, most people have no idea how much the bank has taken in profit. In some cases, the bank’s profit can run into thousands! Using a foreign exchange broker is often considerably cheaper.

When moving money, you will to need to open a foreign bank account to receive your funds. As a non resident, it is crucial to consider a banking facility, or banking provider, that will allow you easy access to your savings and investments. A number of UK high street banks have networks abroad like Barclays, Halifax and HSBC. This could be useful if you are planning on still keeping funds in the UK. This won’t leave you high and dry if you need funds transferred in a hurry.

An alternative option is to open an account with one of the growing number of online-only banks. With fewer overheads, these online providers can afford to be more competitive often offering higher returns on investments. As an online facility you can access your money or check your statements via the internet, from anywhere in the world.

If you want to transfer the money to the country of your chosen residence, you can simply ask the bank or currency broker you have chosen to do it on your behalf. A specialist foreign exchange dealer will inevitably charge less, as well as providing better rates on your money. If your savings are substantial, taking this route can reduce costs significantly.

Buying a property abroad, opening bank accounts, transferring savings and investments, as well as arranging your regular pension transfers and understanding your tax position is a complex procedure which is exactly why more people are turning to independent financial advisors for help and support. Before you consider emigrating, it will be worth having a consultation with your independant financial advisor, then talk to a currency exchange expert for the best foreign exchange quote.

Most receiving banks make an administration charge for receiving transfers. These charges will vary from bank to bank and country to country and are often negotiable depending on the arrangement the recipient has with the bank. It is important to check with your new banking provider especially if you anticipate moving large quantities of money for a property purchase or regular smaller payments for bills or mortgage repayments.

Foreign Currency Exchange brokers often operate using facilities provided by their principal banking providers whereby they can now send Euros to Spain without any charges or deductions being made by the receiving bank. It is commonly known that Spanish banks can charge up to 0.5% of the transaction value to receive Euros from a non resident account. This service could save around £500 on a standard sum of £100,000 in addition to the savings made by achieving commercial rates of exchange on any currency bought or sold.

Using a foreign currency exchange specialist can comfortably save the you many hundreds (possibly thousands) of euros when you get a comparative quote with your bank.
Global Currency Exchange Network are specialists in currency exchange. They don’t charge commissions, they have a special arrangement with banks in Spain to avoid expensive receiving charges and offer they best exchange rates. With an annual turnover in excess of £335 Million, they have the power to set the exchange rates very low.

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