How to Buy a Forward Currency Conract, and Save money
How to Buy a Forward Currency Contract.
If you have a need to fix a currency exchange rate today, for a payment date at some future point, then you are likely to need a Forward Currency Contract.
- You may have agreed to buy a property today, but the completion of the legal paperwork may be set for 2 month’s time
- You may be in business, and need to fix the price of ordered imports at today’s exchange rate. Especially, if you anticipate that the exchange rate may not be as much in your favour when you need to pay for the goods.
- You may work abroad and have a need to regularly transfer a sum of money, but you believe that the exchange rate is at it’s best today
As long as you believe that the exchange rate is good , and you have 10% of the full amount you want to buy, then a Forward Currency Contract could be the choice for you.
Here’s an example:
- You agree to buy a property for 200,000 Euros and you have your money currently in Pounds Sterling.
- You are planning to have a 100,000 euro mortgage, so you need to buy 100,000 euros with pounds.
- The exchange rate is at the best rate for selling pounds to buy euros for a while.
- In this example, the GBP:EUR exchange rate is 1.17 to 1, then the property is costing you £170,940.
If the exchange rate changes to 1.08 by the time that you need to change the money, then the price of the property effectively goes up by £14,245 to £185,185.
As you will be changing half of that amount, you will need to find an extra £7122 on the completion date.
To avoid this, all you have to do is:
- Agree to buy €100,000 today, at a rate of 1.17, but send your currency dealer just 10% as a deposit.
- Pay the balance on the day that the contract ends, which can be set for over a year’s time.
The downside? Well, of course, the exchange rate may go the other way. But, you will at least have the comfort of knowing that the price of your property purchase is fixed.
FAQ: Can I have the money earlier than planned?
Yes, because your currency can create the currency exchange as a “Time Option Forward Currency Contract”. Provided you send the money to the currency broker, they will change it and send it to wherever you ask at any date before the final day of the contract.
To discuss how your currency dealer can help you with a Forward Currency Contract, please speak to Zoe on 0044 (0)1480 458400. www.fx-foreignexchange.com
Global Currency Exchange Rates, Buy and Sell
Buy and Sell foreign currency at the best rates available today.
The British Pound sterling rates today versus other currencies including AED Dirham of Dubai and Abu Dhabi, euros, USD, Canadian and Australian dollars together with Japanese Yen can be bought and sold through our global currency exchange network at the best currency exchange rates available today.
The exchange rates for currency, London pound sterling, GBP, for the morning of 20th November 2009 are shown below. For LIVE CURRENCY RATES use the button on the right and take advantage of the most efficient currency exchange service available.
| Currency | Code | GBP/1 Unit | Units/1 GBP |
| Utd. Arab Emir. Dirham | AED | 0.1622 | 6.1694 |
| Australian Dollar | AUD | 0.554 | 1.8057 |
| Brazilian Real | BRL | 0.3486 | 2.8762 |
| Canadian Dollar | CAD | 0.5666 | 1.7657 |
| Swiss Franc | CHF | 0.588 | 1.7012 |
| Egyptian Pound | EGP | 0.1098 | 9.2203 |
| Euro | EUR | 0.8885 | 1.1256 |
| Hong Kong Dollar | HKD | 0.07685 | 13.0144 |
| Indian Rupee | INR | 0.0129 | 77.7103 |
| Japanese Yen | JPY | 0.006674 | 149.873 |
| New Zealand Dollar | NZD | 0.4443 | 2.2519 |
| Polish Zloty | PLN | 0.2174 | 4.6122 |
| Russian Rouble | RUB | 0.02075 | 48.2224 |
| Swedish Krona | SEK | 0.08711 | 11.495 |
| Thai Baht | THB | 0.01799 | 55.8211 |
| US Dollar | USD | 0.5956 | 1.6792 |
| East Caribbean Dollar | XCD | 0.2231 | 4.5339 |
| South African Rand | ZAR | 0.08004 | 12.5153 |
Open a Free Currency Exchange account with us to make your Bank-to-Bank transfers much better value.
Call: 0044 1480 458 400 (International) or 01480 458 400 (if inside UK) for the best currency exchange rates.
Getting Work in Dubai
Working in Dubai, and becoming an expatriate in the UAE, is a long-held ambition for many who wish to lead the expatriate lifestyle that Hong-Kong used to supply. However, the skills required for work in Dubai are more varied, and the requirements for working in Dubai, are considerably different.
Despite the appearance of a western culture, it must be said that those working in Dubai must respect the fact that it’s citizens are devout Muslims. Local cultures must be respected along with the laws. This includes the requirement to have a sponsor for your work in Dubai.
To work in Dubai, most expatriates will need to be sponsored by an employer who is based in there. If you have skills in the construction industry, finance such as banking of foreign currency transfers, or the media, then Dubai has many sponsors looking for just the right people looking to emigrate to the UAE.
Dubai, part of the United Arab Emirates, UAE, has expanded rapidly since the 1980’s with attractive salaries, tax-free wages and the opportunity to live in the city-state of Dubai which is one of the few places in the world with a “can-do” attitude at the moment.
While the other Gulf states are catching onto the idea that they too, can have tourism and business as essential ingredients within their economic mix, Dubai is currently the undisputed “Hong Kong” of the Arabian Gulf.
However, living in paradise now comes at a cost! Where wages are generally high, so follows a high cost of living. Renting a property in Dubai can be a costly exercise. Most single westerners share a rental property.
Finding work in Dubai isn’t the main problem. Getting permission to work there is the main initial objective of most would-be expats. You can visit Dubai on a 3 month tourist visa, then look for your job. Be sure that the company can sponsor you. To apply for a tourist visa, go to the British Embassy, www.uaeembassyuk.net.
Most Western expats, now working in Dubai, arrive as tourists and can usually get a tourist visa on entry. However, if you’re South African you must have a hotel booking and organise a visa before you visit. Either way, once you gain your permit to work in Dubai, you’ll need to leave the UAE, then re-enter using your work visa.
It should be noted that a work visa will tie you to one employer. If you want to change jobs within Dubai, the law requires a six month “cooling-off” period between jobs.
Some items to organise before you go:
If you think you’ll need your educational qualifications when looking for a job, get them certified by a Public Notary, your own Ministry of Foreign Affairs and the UAE Embassy in your home Country. You’ll need this to make the work visa application a much faster process. Try the UAE embassy on 0870-005-6984.
Get a bank account organised. If you are going to stay on in Dubai, or anywhere in the UAE, you’ll need a bank account as it’s likely that you will be paid in Dirhams, or AED dhm, as they are known. If you’re planning on taking some savings to Dubai, use a reputable FX, currency exchange, company. They are much cheaper than the banks and they are faster. One such company is FX-Foreignexchange. They have an associate office in Dubai and have Barclays Bank as their treasury provider and help many individuals to get the best rates for Dirhams versus other currencies such as Australian and US Dollars, Bristish Pounds, the South African Rand and the Euro.
This FX company regularly helps large corporations to make vast savings when transferring payrolls or supplier payments in and out of the UAE. If it’s good enough for them, why not you?
You can open a foreign currency exchange account, for free here, before you go to Dubai. But, you will need a bank account over there to make your aed dhm transfers to/ from.
