It is common knowledge that political changes highly influence a country’s currency and its value in the international markets. Coming as no exception, the sterling’s fate has been tied to Brexit since the result of the referendum, as the pound is hit by political uncertainty.
In the beginning of 2018, the pound was among the top-performing currencies, but unfortunately, the ongoing Brexit-related turbulences have lead to a yo-yo effect on the value of the sterling throughout the year. In addition, the current divide among MPs about the future of Britain’s departure from the EU, as well as the ongoing political drama in parliament, have all played part in amplifying the volatility of the pound.
What will happen to the pound?
In spite of its current weak state, the pound should – in the near future – benefit from some more clarity regarding the anticipated Brexit deal; this means that it could possibly rise again. However, with even more expected turbulence ahead, it would be impossible to forecast how the sterling will actually react.
How to handle the uncertainty?
Keeping the above in mind, anyone working with foreign currency transfers in the coming period will have to brace themselves for sterling volatility. This means being updated with currency rates on a daily basis, preferably with the assistance of currency-convertor.uk euro to pound; finding the best exchange rates; and putting some risk management procedures in place for when the rates move unfavorably.
Where to find the best exchange rates?
You may already know that banks seldom provide the best exchange rates, while foreign exchange specialists can offer great rates and expert guidance to help you make the most of your money. For instance, if you have to transfer a significant sum to make a property purchase overseas, utilizing a specialist could save you thousands of pounds.
How can currency specialists help?
Currency specialists can assist with access to tools that help you manage the risk of a fluctuating currency market. Something like a forward contract – which may require a deposit – will enable you to fix a prevailing rate for up to two years. They may, however, be a little complicated, so speak with your currency specialist first to determine whether or not it’s right for you. Other more flexible tools include market orders to automate a currency exchange if your desired rate is reached, and email and SMS alerts which give you accurate, prompt information on which you can base informed decisions when the time is right.
Don’t let Brexit affect your finances
Like many political actions, the Brexit process has posed variable unforeseen challenges to the British lifestyle – including its currency. Periodic volatilities surrounding key diplomatic and political events will be inevitable, but this doesn’t necessarily have to jeopardize your financial status. And while economic growth in the UK and Bank of England monetary policy decisions may eventually determine the pound’s value post-Brexit, you can still alter your financial strategies and risk management measures – for the time being – to get the best out of your international money transfers.