Hedging against risk in currency remuneration
If you are currently working overseas, then you may be in receipt of a salary in currency. If you send all or part of that salary back to the UK, you may have found that the amount varies month to month due to fluctuations in the currency market. Over time, you may have also watched the currency transfer fees from your UK high street bank mount up, eroding the value.
Keeping the home fires burning
From school fees to property maintenance, you may have commitments back in the UK even while you’re working abroad. If you’re sending money from your currency salary or bonus to meet those commitments, you may be organising payments on a regular basis and risk the increasing cost of those payments due to currency fluctuations. If you’re managing costs in two or more countries, you may have faced a challenge in meeting those commitments due to currency fluctuations.
Benefits of a currency specialist
A currency specialist can help with regular payments overseas in a variety of ways. Expert guidance can help you take advantage of fluctuations in the FX market as well as identify any specific tools and products that may help minimise any risk. You may consider a forward contract for example, whereby you agree an exchange rate for a defined period of time securing the amount you get for your international salary. As an example, someone working in Dubai being paid in Dirham with interests in the UK, secures a forward contract at a rate of 0.21796 in December 2018 for their salary for the next 12 months. By February 2019 the exchange rate had fallen to 0.20805, leaving the customer 4.5% better off as a result of the hedge. On a salary of 500k AED, that’s almost £5,000 over the course of a year. You can receive alerts on exchange rates so that you can manage the timing of any transfers. You will also have access to a range of tools to automate those transfers and which also manage the risk of currency transactions.
Currency specialist moneycorp works closely with each client to offer the tools and strategies to meet their personal requirements. Opportunities to mitigate the risk of currency transactions and potentially automate transfers will be presented as a range of choices; you can benefit from the expertise of your personal account manager and take control of your income and outgoings overseas. If you’re managing your financial commitments across borders, an international payments account, together with the support of a currency specialist, can help you make the most of your money. Whether you’re expecting a bonus from overseas or you’re looking to make an investment such as a holiday property abroad, moneycorp is on hand to help you choose the best service that is right for you.
With a moneycorp account, you will have access to:
• Great rates on 120+ currencies
• Convenient online platform and mobile app to manage and track your payments
• An automated Regular Payment Plan for scheduled costs
• Tools to track, target and even fix exchange rates for major payments
• Free expert guidance and support from a team of specialists
We have been delivering great value currency services for over 40 years and achieved Feefo 2020 Platinum award for consistently outstanding customer service. It is why we are partnering with City AM – visit www.cityam.com/talk/moneycorp-talk to find out more on how we serve the payment needs of global businesses, importers and exporters, online sellers and personal clients.
Sign up for an account today or call 08082 314822