The ‘ins and outs’ of Exchanging Your Currency

Ever since the Brexit results, the pound has suffered against the euro. This can make for a difficult and, oftentimes, confusing journey to exchange your sterling in anticipation of a holiday outside of the UK. The drop in the pound means many families had to refine their travel budgets to accommodate the change in what their pound will get them.

Some bureaux de change offices are offering barely above €1 for £1, especially if you wait till the last minute and changed your money at the airport, for example. On top of the poor exchange rate, you can count on high fees and charges being billed by some of Britain’s biggest banks, such as Lloyds. Lloyds charges 2.99% for every debit car transaction while abroad. It also adds a £1 standard fee on top of the percentage fee. It can cost you £4.50 each time you take money out of a cash machine in Spain. If you must make a cash withdrawal in another country, it is best to take out a large amount, once, than a lot of little withdrawals. By doing that, you can avoid the myriad of flat fees every time you use a machine.

Many people are unaware that you can order money online, ahead of time, and save a lot. Even the pricy airport exchange bureaux can be the best deal, if you order ahead and pick up your money at the airport bureau. There is a website that can help you find the best deal to exchange your currency. TravelMoneyMax.com will search, using your postcode, for the best deal near your house.

Ordering at least 24 hours ahead of time can mean the difference between €1.05 per £1 and €1.17. Some bureaux even offer next-day delivery if you are unable to get to the office in person. There is a small fee for this service but, compared to bank fees, it is a still a good deal. A good thing to keep in mind, whether you are walking up to counter to exchange or you have ordered in advance, is to never use a credit card to exchange. The transaction will be treated as if you were withdrawing money from another country and you will be hit with a lot of fees. Always use cash or a debit card.

No matter how diligent you are when making your vacation budget, something is always bound to come up. Plans change or you face unexpected expenditures. When this happens, it’s wise to be aware of the best way to withdraw money in another country. Most big banks with take off the top approximately 10% of the money you are withdrawing. One exception is Nationwide building society. If you have the society’s FlexPlus account, you can take money from cash machines with no fee at all and the exchange rate is near-pure market rates. There is a monthly fee for this account but it includes family travel insurance and coverage for a car breakdown. Other banks that are fairly cheap are Norwich & Peterborough building society and Metro Bank. It’s understandable that you may not want to switch banks just for a holiday or two. Research your options and you’ll be better off for it.

The last point, and perhaps one of the most important ones to remember, is that many cash machines abroad will ask if you want your transaction to be in pounds instead of in euros. Even in shops, the shopkeepers will ask you this. Always say no. If you say yes the bank or shop will apply its own exchange rate and that rate is guaranteed to be horrible.

Wherever you’re headed for your well-earned vacation, be informed and research before you exchange your money or use a credit or banking card in another country. You worked hard for your money, don’t let a currency exchange take a lot from it.

Impact of Politics on Currency Exchange

Politics can be seen to have what is called the butterfly effect. The election of Donald Trump, the results of the elections in France, the Brexit vote last June, and now the general election results of this month, among others, all play a part in how the currency is valued globally. In the aftermath of this most recent UK election, the pound sterling has slipped again. It was already low, have slumped and never recovered last year after the Brexit vote.

After exit polls predicted that the Conservative party would suffer a major blow in Thursday’s vote, the UK currency fell around 2 per cent. Investors have been spooked by uncertainty after this election ended in a hung parliament. This comes just days before the negotiations of Brexit begin. It slid a further 0.7% and failed to recover after the final results of the election were confirmed.

The Tory party had failed to secure a majority and the results on the markets were not good. The pound has lost more than 14 per cent against the dollar since last June’s Brexit vote. Some speculation surrounding a strengthening of the pound if the election results lead to a softer Brexit but there are many who remain skeptical about this. UniCredit’s chief UK economist, Daniel Varnazza, wrote in a note to clients: ““A ‘hard’ Brexit is almost a given,” “With Theresa May weak, the hard-line Euro-sceptics in the Conservative party, who are more organised than the Remainers, will be able to take the Prime Minister hostage in their pursuit of a hard Brexit. There isn’t any realistic prospect of this chaos leading to a rethink of the Brexit decision for the country.”

The current political uncertainty is having a dramatic impact on the pound and business leaders should take heed and come together to figure out ways to ensure the pound can be made more stable. There are many questions surrounding Brexit now, and the talks are going to have an even more unsettling effect on the markets.

Volatility of the pound will continue while the government figures out who will lead the country. The Brexit talks and negotiations will have the same effect. Even though the economists factored in what they presumed to be the volatility of sterling during the Brexit talks, even they are uncertain of what will happen in the near future. This is not good for attracting investors to the UK.

“Theresa May’s electoral gamble has catastrophically failed,” said Tom Stevenson, an investment director at Fidelity International. The market reaction to this unwelcome outcome is likely to hit UK shares, bonds and the pound. Markets will likely remain on the back foot while the difficult job of putting together a workable government is undertaken.”

Political uncertainty, election results here in the UK and elsewhere, Brexit, and the effects of the global economy, all are part and parcel of an extremely volatile pound and does not bode well for the UK as business continues to try to attract investments, Investments that seem to be waiting for everything to calm down before repatriating assets into the UK.

Migrant Workers, Money Transfers and Technology

Technology creeps into our lives, transforming who we conduct our lives, our businesses, even our interactions with family and friends. Our mobiles have become a lifeline, at times, for reaching out and seeing the face, and hearing the voice, of a loved one who is thousands of miles away. What a joy this technology is. On less emotional terms, the technology on our mobiles can make our everyday lives easier. We can send a few pounds to a friend in need, pay our bills, as well as transfer our money from and to different accounts. All the while having a cup of coffee at your favourite cafe on the corner, watching the world go by.

Ah, live is good. Now imagine that you have loved ones living in another country. A country that is not as rich in resources and opportunities as in the UK. Loved ones who count on you to send them money, on a regular basis, so that they may live a slightly better life. Now technology just got a lot more exciting and helpful. It has become a vital lifeline for many families of migrant workers in the UK.

For many years, money transfers to another country was a day long affair. Going off to the bank or brick and mortar shopfront that caters to money transfers. The paperwork and the information needed to make that transfer happen was astounding compared to what we have in the way of software and technology. We can’t forget the costs either. The bank fees and currency exchange fees – it was expensive.

For customers who need to send money out of the country, advances in mobile technology is helping to make the transfers easier and less expensive. Customers now have more choice. Using a smartphone, with just a few swipes, their money can be sent. The mechanics of money transferring is becoming more convenient and secure. It is also driving down the costs, which is of great benefit to all, especially migrant workers who want to send as much money as they can to their families while still being able to live and work in the UK.

Money transfers, according to the World Bank, is a vital lifeline for many and is worth almost $500 billion annually. There are approximately 700 million people globally who are supported by money transfers. Incredible numbers to think about. We are truly a global village and technology is making the art of reaching out easier.

Money Transfer Fees and What to Look Out For

It can be a tricky act to transfer money, especially large amounts of money. Fees are the biggest hurdle you have to overcome if you don’t want to throw money away. With the ‘global village’ that we live in, transferring sums of money is becoming more commonplace. The transfers are also becoming a lucrative business for banks and institutions. Ill-informed clients are some of their biggest gains. Don’t get caught up in that trap.

While using banks might be the first source people think of when preparing to transfer money, they may also be the most expensive. On top of the fees you have to pay to the bank for a wire transfer, there may also be hidden fees. These fees often are in the form of skewed currency exchange rates.

Some things to pay attention to are the bank’s exchange rates and their currency conversion fees. Every bank has its own exchange rate fee or currency conversion fee and these fees can be quite high. It’s up to the bank to decide these fees. Usually set as a percentage of the amount being converted and transferred, one must keep in mind that it doesn’t cost the bank more to transfer a large amount compared to a small amount. In other words, by using a percentage instead of a set fee, banks are reaping in profits based, basically, on a random number.

Exchange rates do not change with the size of a transfer, nor does the work involved. Using a percentage rate is just not fair to you. Keep this in mind as you consider what institution you will transfer your money through. Ask the questions and shop around for the best rates.

There are a number of companies opening up that provide a lower rate, compared to banks. As the number of these businesses increase, the tables are being turned in favour of you, the client. Competitive rates are great for people who need to transfer money frequently. These new businesses recognize a niche the banks have created and are taking advantage of new and expanding ways to transfer money globally.

Now is the time for those of us who need to make money transfers, whether they be small, recurring transfers or a large money transfer, such as for a house purchase, to be in control of how much they are willing to pay for that transfer. Its no longer just banks in the game.

Exchanging Money – How to Get the Best Rates in These Times of Turmoil

First the results of the referendum, followed by the triggering of Article 50, and now the unanticipated general election results. Following each of these, the pound has fallen and appears to keep falling. It is now at its lowest in over 4 years and no one is certain where it will land. Two years of negotiations will see the pound remain unstable and inflation rise to a high that has not been seen for many years. There are grumblings about a second general election and that could see the pound drop even further. The Article 50 negotiations will lead to a soft or hard exit and a soft exit could be beneficial for the pound.

All of this uncertainty and turmoil is making the exchange of the pound to another currency unpredictable and difficult for Brits to decide when a good time is for exchanging their money, mainly for travel as the season is upon us. Exchange your money now, before the pound falls further, or waiting and hoping that it rebounds is a difficult decision. With inflation as it stands now, people have to be very careful with their finances and ensure that they are getting the best rate possible to make their money go further.

If you don’t want to think about exchange rate movements and plan a strategy, buying at today’s price and simply ensuring you find the best rate on offer is one option. Keep in mind that the best rates will not be found at a bank or Post Office, and the worst place to exchange your money is at transport hubs such as airports. It is often the small, highly localised suppliers who have the best rates. Planning ahead can also save you money by ordering ahead of time, most exchange businesses will give you a good deal and, depending on the amount you want to exchange, will charge you lower fees.

Another option is to buy in stages. This will even out the rate as the pound fluctuates and you purchase at times when it is high and sometimes it could be low. This option won´t give you the best rate but it will prevent you from purchasing money during a temporary slump. Be aware that some fees are higher for smaller amounts and it would be wise to research these fees before opting to buy in stages.

The bottom line to purchasing currency is to do your research and make a plan. You want to ensure that you are getting the best rates and lowest fees for exchanging your money. After all, you´re going on vacation and the last thing you want to be thinking while on vacation is money and how, in hindsight, you should have done it differently.

Feeling-the-Inflation-Squeeze

Inflation in the UK is hindering the household budgets as it has climbed to a four-year high since the Brexit vote. When the pound fell sharply after the vote, the economy started to suffer. In May of this year inflation rose to 2.9%, above the 2.7% that was expected by economists. Inflation has been steadily increasing since the referendum result a year ago, which triggered a sharp drop in the value of the pound and pushed up the cost of goods imported from abroad. Inflation was 0.3% in May 2016, a month before the Brexit vote. That´s a growth of 2.6% in inflation in just a year.

While higher prices for oil have added to the upward pressure of inflation, it really comes down to the weak pound. UK households are seeing higher prices for food and electricity, leaving less to spend on travel and non-essential purchases. As manufacturers are being hit by the weak pound for purchasing goods from overseas, the price rise of their goods for production will mean higher prices for consumers. It appears to be a catch 22, as wages are not keeping up with inflation which leads to the inability to purchase goods that, in turn, help the economy to grow and for inflation to lessen.

There is movement to pressure the newly elected government to help households cope with rising living costs. The TUC general secretary, Frances O’Grady, said “The election showed that working people are struggling. And the biggest price rises in four years won’t provide any comfort.” She also stated that “Working people are still £20 a week worse off, on average, than they were before the crash, and now rising prices are hammering their pay packets again. The new government must stop the real wage slide. Ministers must focus on delivering better-paid jobs all around the UK.”

“Too often there is more month than money left after pay day. Ending the public sector pay freeze and making sure all workers are paid a decent wage is an absolute must and it needs to be on the agenda for the Queen’s speech. Tim Roache, general secretary of the GMB union said. The average wage growth of 2.1% in March is not keeping up with inflation and the inflation increase is expected to widen the gap even further.

The Brexit negotiations are hindering the UK´s ability to shrink the gap between inflation and wages and will continue to do so until everything is settled but that is a long way off. Even interest rates are being affected. The Bank of England is keeping the rate at the record low of 0.25%. Oliver Kolodseike, a senior economist at the Centre for Economics and Business Research consultancy, said: “Under normal circumstances, the Bank of England would have a sufficient set of arguments to justify an interest rate rise. “Under the current circumstances of high inflation and low wage growth, increasing interest rates would only harm consumers further, as they grapple with trying to pay their mortgage and rising bills.

Minimal growth in wages, big growth in inflation, and a weak pound, have all led to a lag in consumerism and the end is not in sight. Paul Hollingsworth, a UK economist at consultancy Capital Economics, is predicting an even higher inflation rate, at around 3.2% in the fourth quarter of this year. This is due to the forecast in costs of production and the price increases feeding down through to the shops and the consumers. All of the UK is in a standby position, holding their breath so to speak, to wait and see what happens once the UK leaves the EU.

What Exactly is a Bureau de Change?

We´ve all heard of, or at least seen the signs for, a Bureau de Change but what exactly is it and why is it in the French language? Well, it is a business for exchanging currency. The term is originally French but is now widely used throughout Europe and some parts of Canada. Unless you’re in France, you don’t have to worry about the people working in a bureau de change not speaking your language. It actually became the norm when the euro was adopted and is now a prominent name for many exchange offices.

A bureau de change is often located in an area where there are many people such as a bank, at a travel agent, an airport, railway station or large stores. All of these areas have people that might be in need to exchange currency. Airports and railway stations are the most common spots for a bureau de change.

Exchanging currency at a lower rate than what they, themselves, purchased it at is the business they are in and that’s how they make their money. They will often charge a fee for their service, on top of the exchange rate. This fee can be a percentage of the amount being exchanged or it can be a flat fee. Some bureau de change offices will charge both. With the rise of online exchange businesses, the bureau de change offices are feeling the bite into their business and their profit margins are dropping as they try to compete with the online world.

Changing money at a bureau is often a more expensive transaction. Being situated in areas such as airports allows this business to offer services to people in transit who have little choice in the matter. They are stuck at an airport or railway station and need currency exchange. Bureaus also offer the opportunity for money laundering and many countries require them to register as money service businesses so that they are subject to the anti-money laundering measures of a particular country.

You might think that you really don’t need to know about bureau de change but knowledge is power and the more you know about how different businesses conduct money exchange can only help you if you find yourself in need of currency exchange. There are many other businesses out there and you’d be wise to understand what’s best for you and your hard-earned money.

Saving Money Sending Money

Sending money abroad is a huge industry in the UK and navigating the various systems can be a headache. You want to ensure that your money is safe throughout the transaction, but you also want to pay the lowest fees to make the transfer as painless as possible. Your hard-earned money can’t be ‘played’ with lightly, especially given the turbulent political landscape that is the UK right now. The pound has fallen significantly against most other currencies since the Brexit vote and will continue to do fluctuate up and down in the future.

You definitely don’t want to seek out the best exchange rate by jeopardising the security of your money. The last thing you need is to lose your money to a high-risk transfer agency or firm. So you need to do your homework in order to make a transfer that is at a good rate, for a low cost, and is secure enough for you to have confidence in the transaction.

First, consider how much you’re sending and how often you’re wanting to send it. You might want to set up recurring transfers to a family member. Perhaps you’re working in the UK but your family is in another country and you want to help support them. Or, perhaps, your child has gone abroad to school and needs you to help with expenses in another country. You may be investing in another property in another country and you need to send funds to purchase that and pay the fees to the various parties. People in the UK send money abroad for all sorts of reasons; finding the best way to send these funds takes a bit of work but will be worthwhile, in the end.

There are three main ways of sending money: a High Street bank, a transfer firm or a foreign exchange broker. The safest way would be through a bank but you’re unlikely to get good exchange rates and the fees might not be worth it. Bank transfers can also take up to a week to process.
Money transfer firms are good for sending money quickly but the fees will be high and the exchange rates fluctuate widely.

A foreign exchange broker is probably your best bet. Their fees are often low or non-existent, they are fast and their currency rates tend to be highly competitive. The software available to these brokers have advanced wonderfully over the years, allowing them to do money transfers for you at a low rate and quite quickly. Ask around, look for ratings for different brokers on the internet as part of your homework. Don’t go running to your bank just because it seems the easiest way to transfer your money. A little investigative work now will pay off for you in the end.

Mobile Money: A Tale of Two Countries

Mobile Money is a developing platform that started as a payment service from your mobile and is now evolving into a platform to include other financial services. You can access your money anytime, anywhere without having to go to a traditional bank. This is widely used in the UK but for low-income people in other countries, it can be the lifeline they need. The low-income population in some countries are also known as the ‘un-banked’. The ‘un-banked’ do not have access to a bank account and, therefore, no access to the services offered through a bank. With mobile money opening the door for those in need of banking services, it is becoming more and more of a necessity. It can empower the unbanked population by providing basic financial services and financial inclusion. This can help businesses grow and make trade easier.

We will look at two countries in Africa to investigate the best mobile solutions. Kenya is the largest economy in East Africa. Nigeria is the largest economy in West Africa, and in Africa as a whole. You would think that, due to the economic standings in Africa, these countries would have similar experiences with using mobile technology but these 2 countries have experienced very different outcomes when it comes to the Mobile Money industry.

Kenya’s mobile money is being led by the telecom industry and has had great success. Safaricom entered the market in 2007 and invested in a strong infrastructure, including an awareness campaign. The ownership of mobile phones by the ‘un-banked’ led Safaricom to be the leader of the industry. Safaricom can even facilitate a limited range of loans, savings, insurance products as well as financial transactions. The platform is used by many in Kenya, not just the poor, ‘un-banked’ population.

While Nigeria also has a large ‘un-banked’ population and heavy use of mobile devices, the experience is quite different from Kenya. This is basically due to it being based on a ‘bank-led’ model rather than a telecommunications model like Kenya’s mobile money model. In fact, the telecommunication companies in Nigeria have been restricted to providing the infrastructure for Mobile Money, through which bank services can be offered. The Nigerian Central Bank (NCB) has heavily legislated the mobile money industry, making it less attractive. They claim that they have done this to avoid money laundering and also due to concerns about a loss of control. All of this control and restrictions on the telecommunications industry has left little incentive for them to be proactive in offering services. Even MTN, a South African telecommunication company with successful Mobile Money platforms in a number of other countries has fallen into difficulties with the Nigerian Government.

This model in Nigeria is doing the population a disservice and the numbers show this as fact. In 2014 a survey indicated that only 0.8 million adults use mobile money. This is in a population of approximately 178 million. Nigeria now needs to catch up, otherwise the unbanked population will be suffering the consequences of not having basic financial services for years to come.

What Software as a Service Is and How It Can Help You

Software as a Service, also known as SaaS, is an application delivery system over the internet. E-mail was one of the first application offered in this manner. For business, the early innovations were things like recruitment, customer relations management, and expenses. SaaS has become a widely-used business model with more and more different kinds of applications available via the cloud.

The ability to get applications up and running very quickly is one of the attractions of SaaS. In-house IT projects can be quite complex and can take a lot of time to set up and implement. A major credit card company’s head of marketing was “like a kid in a candy store when told it would take only five weeks to get a cloud application running. IT had originally quoted 18 months”, according to the Harvard Business Review.

Using packaged or in-house software means that you have to shop around and evaluate, purchase, install, keep secure, maintain, and regularly upgrade. This places an added burden on your IT team, with the possibility of projects getting back-logged and not done on time. Integration of the various applications could be tricky and time consuming. SaaS comes as a relief.

SaaS keeps growing and more businesses are turning to this model for their applications. The growing use of mobiles in business has taken great advantage of Software as a Service. You no longer have to be in the office to be able to access your work. The increase in the standard internet connectivity speeds makes working remotely a lot easier these days. Files can be synced, as well, so when you return to the office you can continue on your computer as if you had never left.

The standardisation of digital technologies makes it easier to integrate and share cloud-based programs and services. These common protocols allow users to work on multiple devices, all the while having a better experience. More and more users are happy to work in this way thanks to the familiarity, usability and simplicity of web-like environments.

Having no software or hardware to purchase, install, maintain or update makes SaaS very attractive to many businesses. As a user, there’s little to do until you actually start using the software. Familiar web-based interfaces is a major draw to SaaS, building on the consumer web that users already know. Updates are often made regularly so there is no need to put IT resources into maintenance. The ability to work, in real time, either remotely or with others who are located elsewhere is a big draw for businesses towards SaaS.

As computing systems increase in sophistication and power, SaaS has kept pace, moving up from simple single applications and becoming a practical approach for large or enterprise-scale solutions. The benefits of SaaS are many. The service costs are scaled, depending on the size of your business and the number of applications you need and the number of people who will be working on them. If you have offices across the country or the globe, everyone in your company can access the same applications and the same data, at the same time.

The future of SaaS will see even more growth in the industry. The cloud approach can help companies develop end-to-end integrated solutions and allow them to concentrate on what they do best, leaving a wide range of hardware and software IT issues to service providers. Long-term relationships with SaaS will grow and the input from you, their customers, will help to make Software as a Service even better. Understanding customer’s needs and being able to deliver solutions is placing SaaS as the go-to service for many businesses.

Category: Money Exchange