One of the most fiercely debated issues in UK politics over the years has been whether the UK should have joined the Euro-zone when it had the chance to, or indeed should we ever join.
With the current exchange rate it would be worth arguing the case for joining now, but that would only serve to devalue sterling even further than it already is and of course there are far deeper reaching problems to be resolved before it would even be worth considering.
If ever there was a time that I have personally wished for a single currency it has been when conducting business transactions with other countries in Europe, most often dealing with companies in Germany.
When we started out importing goods it was secondary to our main business and my partner and I were content to let our company bank deal with the transactions. While it is hard to find fault the bank have in the past been very slow to transfer money and always with a substantial fee involved.
Something I learned recently is that it is possible to reduce risk against constant fluctuations in exchange rates by using a foreign exchange hedging strategy that enables you to guarantee a worse case rate when purchasing from overseas on a regular basis
There are other options available through foreign exchange brokers that you might consider and one would be to ‘fix’ the rate with a forward contract over an agreed period of time. This would protect you against adverse rate changes but would offer no benefit from improvements in the rate.
As well as making international payments, foreign exchange brokers can also accept payments from customers that you have exported goods to, and in the case of World First they would guarantee the best exchange rate, with a fast and efficient CHAPS payment to your account.
Payment to these overseas companies is now under review as I am convinced that a foreign exchange broker would not only speed up transfers but would save my company money too, with the possibility of further savings through one of the many specialist products.
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