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Brexit and Exchange Rates; How to Manage Your Currency Transfers

 

Whether you are about to buy a property in Portugal, or already live here, if you need to make international payments, Brexit developments and fluctuating exchange rates are sure to make things more confusing than ever!  Fortunately Pure Portugal’s currency partners FC Exchange offer a quick summary on progress so far, and what you can do to protect your funds. 

How is Brexit Progressing?

Brexit has created a number of uncertainties, and with no deal currently in sight, there are even more concerns rising ahead of the October deal deadline. The pound fell by 20% after the referendum, and there’s the potential for another decline should things get rocky.

The October EU summit is expected to be the most prominent opportunity for the two sides to reach a final divorce agreement. However, the Conservative Party is due to hold a conference just a few weeks before, meaning there’s limited time for Theresa May to make adjustments to any propositions without causing opposition from hard-line Brexit backers.

‘The EU has a motive to reach an agreement with the UK, and in the history of EU politics, an eleventh-hour agreement is usually reached.’ – Eimear Daly, Global Reach Chief Economist

 

Should October not yield a divorce deal, there may be another emergency summit called in November. There have been hints this could be the case; David Davis suggested there would likely be a November meeting when he resigned. Meanwhile, mid-December will see the last European Council meeting of 2018 take place. If no deal has been made this could be the last opportunity of the year for an agreement to come to fruition, just a few months before the UK officially leaves the EU.

‘News headlines heading into the 29th March 2019 deadline are likely to provide plenty of sterling volatility and we don’t rule out higher levels in EUR/GBP.’ – Eimear Daly

How can you Protect your Funds?

With FC Exchange, you can navigate the currency market with an industry expert by your side to make smarter currency decisions. You’ll be able to protect your money by locking in an exchange rate for up to two years for a property purchase, so you know exactly how much your transfer will cost. This means if the pound were to decline against other currency majors, your exchange rate would be protected at the rate you agree. Alternatively, you can make a transfer right away to take advantage of a positive market upswing.

If you’d like to discuss your foreign exchange requirements with a currency expert, call +44 (0)20 7989 0000 or visit www.fcexchange.com

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