Edition #8 of the OzForex BERIA Update

Well it has been a busy few weeks in the foreign exchange markets and with the decline in the AUD we have seen some mild improvement in the value of the GBPAUD. I’m sure you are all probably thinking that it would be nice to see an even greater increase in this currency pair, and I thought it would be worth discussing the use of forward exchange contracts (FEC) for when this rate improves to a level you are happy with!

Forward exchange contracts enable clients to lock in a current rate for future funds delivery. What this means is that when your preferred rate comes up in the market, you can lock this rate in for future use, even if you are not ready to transact at that point in time.

Instances where clients might use a forward exchange contract are as follows:
-Purchasing a property with international funds: when placing a deposit on the property there is every risk that at the time of settlement (1 or more months down the track) the exchange rate is very different and that property may have become significantly more expensive. Locking in an FEC when putting down a deposit guarantees you that rate at time of settlement so you know exactly how much that property is costing you.

-Looking to convert currently non-liquid funds: If you have funds tied up in a term-deposit or other investment and a fantastic rate comes up, you may want to utilise an FEC so you can use the current rate when your funds become available.

-Bringing over a pension: Many Aussie residents bringing a pension over from the UK will lock in a great rate for 12 months so they know when they will be receiving in their account for the following 12 payments. If you want to know more about using forward exchange contracts or how to transfer money internationally please click on the adjacent banners to register with OzForex and receive your first two transfers under 10,000AUD completely fee free.

Hello BERIA Members!

Edition #7 of the OzForex BERIA Update

Comparing Rates

It is important when choosing a foreign exchange provider that you look into the most reputable and secure option (see BERIA update 3#) but also the provider that offers the best deal! So this week we have included some tips on comparing rates:
-When you get a quote from one provider make sure you get the alternative quote at exactly the same time – the foreign exchange market is the largest market in the world and moves on a second by second basis. Sometimes, if time lapses between quoting, a quote that appears competitive is only because the market has moved in your favour.

-Ask what margin they provider is charging you and make sure that this margin is reflected when you deal – sometimes FX providers can make themselves sound competitive when providing a quote but then not follow through with that margin when you actually go to transact. You can always expect transparency from OzForex as we compare customer and interbank rates for you at http://www.ozforex.com.au/cgi-bin/customer-fo ... s.asp

-Ask about fees! – fees vary significantly from institution to institution and can often make a transaction significantly less competitive (especially if you are making smaller regular payments as in the case of receiving a pension in Australia). At OzForex, there are no fees for transactions over 10,000AUD and no receiving fees in most instances.

To register to get live rates and access to our dealing team 24 hours a day, 5 days a week, click on the banner adjacent or call 1300300424.

OZFOREX BRIEFING TO BERIA MEMBERS # 7

With Easter approaching the GBP/AUD is yet again moving towards more historic lows. The pain for those seeking to bring funds back from UK has been created through two main waves of contrasting sentiment. Firstly with the Aussie dollar experiencing a consistent and steady rise in the last 4 weeks the strength in the dollar has been triggered and well supported by better than expected domestic data. Secondly the ongoing woes of the UK seem to be magnified by concerns about not only its own budget deficit but also the general high debt levels throughout the Euro Zone, with decreased spending and increased taxes necessary to repay such debt a period of contractionary policy may lay ahead!

Until next time,

Jennifer

Welcome to the 6th Edition of the OzForex Update!

As many of you sit by your computers ever hopefully waiting for the GBPAUD to increase beyond its current levels, I thought it might be useful to discuss limit orders and how they can be extremely helpful in times of “non-ideal” rates...

Basically, a limit order allows a client to instruct us to buy a specific currency when it hits a certain level. This means that as soon as your target level is reached (and even if it only lasts there for a few seconds), we will go and buy the agreed amount of currency at the agreed rate. As foreign exchange markets are open 24 hours and volatility often occurs during overnight sessions, you may miss out on the best rates if you are unable to monitor movements all the time.

There are very few providers out there who will allow private clients to utilise limit orders – with OzForex limit orders are free but the amount generally does need to exceed AUD 50,000. For more information on OzForex limit orders, register by clicking on one of our adjacent banners or speak to the OzForex dealing team on 1300 300 424.

OZFOREX BRIEFING TO BERIA MEMBERS # 6

Last week we certainly saw the GBP fall against the AUD, this wasn’t helped by the better than expected unemployment figures released in Australia. The AUD recovered quickly after the RBA left interest rates on hold and that was certainly unexpected. Still, no joy for the GBP/AUD however we have expected to see improved figures for inflation, retail sales and unemployment in the UK also. The RBA will meet tomorrow to hear what Gov. Stevens has to say, and retail sales figures will be released in the UK on Friday also, so fingers crossed they will come in stronger!

For more information, please follow the links and go to the Economic Calenders and Daily Commentaries.

Until next time,

Jennifer