Foreign Exchange Guide

The link between exchange rates and inflation can be quite complicated as its effect can be both positive and negative. They are also similar in that both Inflation and exchange rates determine if a nation is likely to be economically stable or not.

Inflation and its effects on exchange rates can also be ascertained from the...

Many businesses of all sizes often import items from foreign countries and as such are required to deal with many different currencies on a regular basis. However, when holding currencies it is important that they too hedge their currency exposure. Hedging may sound complicated but all it refers to is methods of trying to reduce your...

Hedging may sound complicated but all it refers to is methods of trying to reduce your exposure to the various risks outlined in the other articles in this section. As the currency market is as volatile and unpredictable as ever, many companies and individuals are looking to hedge their currency portfolio, corporation or foreign...

At the beginning of 2002, the first day of the year in fact, the euro became the only currency of twelve different members of the European Union, a move that made it second only to the United States dollar as the most used currency in the world. This decision was also the biggest change of currency in the history of the world and the...

A variety of businesses whether small or large often have to trade with other businesses and customers in many different countries. In process of trading abroad, they will frequently either sell goods and services to foreign countries for which they will receive payment (referred to exporting), or the company may buy goods and...

Despite the recent economic turmoil in the UK we have seen an incredible rise in the amount of people moving abroad in order to make the most of their better educational set-ups, better job opportunities and even their better economy in general. Most people, when contemplating purchasing a house, often forget about the effect that the...

When transferring large sums or even smaller sums, it is important to try and get the best rate, even small differentials in exchange rates can make a huge difference to the amounts concerned. Even a small increase of 1% on a £100,000 fee is £1000. This is a lot of money in it's self but when you think that many transfers even on a...

Making sure you do your research on the various foreign exchange transaction types is key to ensuring a the long term stability of your property purchase and making sure it's a sound investment. Foreign currency exchange deals include:

1. The first point we will discuss is spot transactions. Spot Transactions...

The bilateral exchange is the common way of quoting a currency in that it involves two currencies in a pair. The majority of the time the central or federal bank will be one side of the relationship and they are displayed using their three letter symbols and are displayed with the base currency at the beginning followed by another...

The reality of the use of these exchange rate is that it's rare to find one that is entirely floating or entirely pegged but rather it is much more common to find one that is a combination of the two. One way of doing this is for a country using a traditional pegged system can prevent the typical market panics and the potential...

There are two different types of exchange rate systems, free and pegged. A pegged system which is also commonly referred to as a fixed system, is one that involves a fixed exchange rate that is set and artificially maintained by the government of that particular currency. This rate is then pegged to another nations currency, most...

A floating exchange rate or fluctuating exchange rate as it is sometimes known is a kind of exchange rate regime that involves a currency value being allowed to fluctuate according to the foreign exchange market. Any currency that uses a floating exchange rate is known, predictably, as a foreign currency. It is essentially impossible...

Over the last few years we have seen an incredible rise in the amount of people moving abroad in order to make the most of their better educational set-ups, better job opportunities and even their better economy in general. The majority of them have moved alone leaving their friends and family in their original country so this...

As any seasoned traveller or holidaymaker will no doubt have already noticed, the currency exchange rates very rarely stay static and can often fluctuate greatly during the day. Many people make money from these daily fluctuations which is most commonly described as Forex trading which involves the buying and selling of different...

If you are contemplating purchasing a property abroad and are looking for the best currency transfer rate this is our top 5 tips on how to get the best exchange rates and make your money last longer!

1. As soon as you make your decision to purchase property, start getting daily or at the very least weakly exchange rate updates...

Well over five million british residents have decided to move abroad during the past 10 years and unfortunately, recent problems in the strength of the GBP has affected those who rely on their UK pension. Despite this though, many UK residents continue to move abroad in search of a better life with the likes of Spain, Portugal and...

<p>Whilst there are various ways of making small, regular international money transfers, when you are looking to make a transfer of a significant sum for example when purchasing a property, the people that are most likely to give a good rate are specialist Foreign Exchange brokers. It is the same when purchasing any other high...

One of the key factors that effects the foreign exchange rates is the supply and demand for each particular currency. As the exchange rate increases, the demand for the currencies decreases. Similarly, if the supply of a country's currency increases, the value of that currency will decrease in relation to other currencies and more...

When it comes to the end of the accounting period and it is time to draw up the company accounts, companies which account in Great British Pound, you need to convert payments received and sent as well as receipts in foreign currencies, and the value of any foreign currency denominated assets and liabilities, all into Great British...

Fluctuations in the exchange rates will also have a direct impact on the value of any foreign currency denominated assets or liabilities held by a company or organisation.

Asset Ownership

For example, let's say a company or corporation has recently acquired a United States based asset which would obviously be...