The drop in the value of the pound because of Brexit happened in June 2016. All price movements since then are against a baseline price that already takes Brexit into account, and largely reflect markets’ changing views of the likelihood of hard/soft/no Brexit. It’s gone up a bit recently because the chances of ultra-hard (no deal) or hard (May’s deal) ...
It's mostly VAT (value added tax or sales tax). For example an US IPad is $499 without tax, and a German IPad is EUR 499 including 17% VAT. The base price is actually only EUR 417.
In addition to that, cost of business is a little higher in Europe because of tax structures and because smaller countries cause higher overheads.
Maybe. It depends on the currency you are using to buy the GBPs.
If you are buying them with Venezuelan Bolivars, then it will likely be an outstanding investment. If you are using USDs or Swiss francs, maybe not. What you are really doing is simply speculating on the future change in value between the GBP and your other currency.
In general, to someone in a similar circumstance I might suggest that the lowest-risk option is to immediately convert your excess currency into the currency you will be spending. Note that 'risk' here refers only to the variance in possible outcomes. By converting to EUR now (assuming you are moving to an EU country using the EUR), you eliminate the chance ...
I got historical data for GBP/ZAR here, going back to 2000 (you need to register to download it).
I then divided the closing price on each day by the average closing price for the whole month.
I don't know if it's statistically significant, but there does seem to be a very small effect with higher rates (i.e. more ZAR for 1 GBP) at the end of the month: on ...
The simplest answer would be: Because they can. Why charge less for something if people will pay more? One example are Apple products. While there the price number is not exactly the same in EUR and USD, they are so close that, effectively, the EUR product is more expensive.
Many things go into a price. There might be reasons for products in the EU being ...
If you "have no immediate plans for the money and will probably not return to Switzerland for a long time or at all" then it might be best just to exchange the money so then you can use/invest it in the UK.
Maybe keep a bill or two for memory-sake - I do that whenever I travel to a foreign country.
Key point here is to remember that GBP isnt falling a lot, it has fallen a lot already.
If you havent liquidated your position in pounds by now at a higher rate I would personally not bother switching to another currency right now.
The pound is near its 10 year low(nearing 2008 capital 'C' Crisis levels) and despite what fear mongers may short the market ...
I'd recommend an online FX broker like XE Trade at xe.com. There are no fees charged by XE other than the spread on the FX conversion itself (which you'll pay anywhere).
They have payment clearing facilities in several countries (including UK BACS) so provided you're dealing with a major currency it should be possible to transfer money "free" (of wire ...
A general principle in finance is that you shouldn't stick with an investment or situation just because it's how you're currently invested. You can ask yourself the following question to help you think it through:
If, instead, I had enough GBP to buy 20000 CHF, would I think it was a good idea to do so?
(I'm guessing the answer is probably "no.")
I don't intend to live in the UK again
If you don't intend to live in the UK again, my advise would be to move this back to Germany in EUR in the near future. Generally taking Fx [Currency] risk is not advisable unless the portfolio is large.
I don't need the money in the short term
As you don't need the money immediately, you can afford to wait and ...
The London Stock Exchange offers a wealth of exchange traded products whose variety matches those offered in the US. Here is a link to a list of exchange traded products listed on the LSE. The link will take you to the list of Vanguard offerings. To view those offered by other managers, click on the letter choices at the top of the page. For example, to ...
FX trading platforms are not used for exchanging money, they are used for trading currencies.
"I know there are cheaper services like transferwise, charging about 0.5 %, but there is little/no control over the exchange rate, you just get the rate at the time of execution."
With FX trading you don't have control of the exchange rate either, just like the ...
No it isn't exempt and I would like to know where you got this information from.
If the rental profit (gross income less allowable expenses) is less than £2,500 a year, and the gross rental income (before deduction of expenses) is less than £10,000 a year, you can ask HMRC to collect any tax due through your PAYE code. You would need to send the tax ...
Is there a resource that can help me, as a complete layman, understand the possible things the exchange rate might do, on time scales of months up to years?
No, there isn't any such resource, for laymen or for professionals. This is particularly true for foreign exchange, and even more so with high-volume, high-quality currencies such as the JPY or GBP. ...
This is in general a hard problem. Many people (I get around 5 of these e-mails from bank professionals every morning) will tell you their guesses on which direction currencies are moving. On this up/down question even the professionals are right embarrassingly close to half the time.
If you want what the market as a whole thinks (rather than just the ...
That's what Futures are for. A Future is a contract that says "I pay this for that, at a specified time in the future".
For example a EUR/USD Future DEC 2015 at 1.2085 is a contract where you pay (contract size)*1.2085 USD now, to receive (contract size)*1 EUR on DEC 2015. The problem is that contract size is relatively large (125'000 EUR), so it depends on ...
Since you assume a continuous decline, you could sell spot EUR for USD and EUR for GBP. Because you're talking about liabilities, you know exactly how much you need to hedge (interest payments + principal).
You may need to pay UK Income Tax on your foreign income, eg:
wages if you work abroad
foreign investments and savings interest
rental income on overseas property
income from pensions held overseas
Foreign income is anything from outside England, Scotland, Wales and Northern Ireland. The Channel Islands and the Isle of Man are classed as foreign.
Unless you want to invest a lot of time into learning about ForEx, I think the best time to convert is whenever it's most practical for you. This is because, as some of the comments say, no one knows when which currency will go up and down. Unless something major happens, you're unlikely to gain/lose a huge amount within a year.
Whatever you do, try to ...
One way of looking at this (just expanding on my comment on Dheer's answer):
If the funds were in EUR in Germany already and not in the UK, would you be choosing to move them to the UK (or a GBP denominated bank account) and engage in currency speculation, betting that the pound will improve?
If you would... great, that's effectively exactly what you're ...
Unfortunately it is absolutely impossible to guess which way the currency pairs will move.
Any opinion, whatsoever, you are given (here or elsewhere) is purely opinion.
Here's a long term chart ...
You could easily argue it's heading down, or you could easily argue it's heading up.
It's important to realize that in any opinion you see, the rationale for ...
You're totally right that really bad economic news should make these numbers go down. But there are two things at play:
Brexit hasn't happened yet.
These trends play out in the long run, but in the short run there are a ton of factors at play.
If ZipBooks only denominates in one currency, and you selected USD, then the bank account demoninated in GBP can't be in that accounting file.
It just doesn't work to have that second account display as USD when in fact it is GBP. It will make every report wrong.
This may "seem to work" with currencies with coarsely similar values (USD, CDN, GBP, Euro)...
One of the peer-to-peer transfer services (like TransferWise, CurrencyFair, etc.) should help you. These services are radically cheaper than banks. I tried to research why the rates are cheap and the answer was quite technical. These services match currency moving in either direction.
My understanding of the operation of peer to peer services is this: ...
The cards will definitely be better than the cash.
Simply check the two cards you have, and compare the fees for the two on international transactions - you'll have your answer.
Just forget about changing cash.
And have a Whisky for us !
There are two exchange rates: The rate for buying (for example) British pound, that is how much you have to pay for one pound, and the rate for selling, that is how much you will get in return for one pound.
There is usually a huge difference. For example, today I would get €1.22 for one British pound, but I would have to pay €1.36 to get that one British ...
No. Unless you plan on using the pounds for a trip of some sort in the future, there is likely to be a fee attached to the currency conversion that will at least mitigate and appreciation you see against your home currency.
If you just put the money in a savings account you could at least earn some interest.
Most US banks don't allow you the ability to draft a foreign currency check from USD. Though, I know Canadian banks are more workable. For instance, TD allows you to do this from CAD to many other currencies for a small fee. I believe even as a US Citizen you can quite easily open a TD Trust account and you'd be good to go. Also, at one time Zions bank was ...
If you wanted to spend money in another country, a specialist credit card would be the most cost-effective way. Near-spot exchange rate, zero-loading, no/low ATM fees.
Likewise a pre-paid debit card would also allow for money transfer across borders.
If this is the right situation, FOREX trading platforms are overkill to achieve a valid solution.