Spain still reigns for FX but transactions back to the UK rise to nearly a fifth
Whilst Spain remains the most popular destination in terms of volume of currency transactions in 2011, interestingly, the UK takes second place with 18% of transactions according to the latest data compiled by FX specialist, Currency Index.
Almost a quarter of all FX transactions in 2011 (24.99%) were sent to Spain, unsurprising given the country’s appeal as a top holiday and second home destination. However, while France took the third spot with 14.83% of all transactions followed by the US in fourth place at 9.01%, one of the most surprising results was the volume of transactions sent to the UK last year.
Robin Haynes, MD of award-winning Currency Index explains,
“18.10% of FX transactions, nearly a fifth, last year were made back to the UK. This is most likely a result of people returning home from overseas or in a few cases sending currency to UK-based Euro/USD accounts for example, which can be overseas properties where a lawyer’s client account is in the UK for example. In addition, part of these transactions will be business clients repatriating income and also individuals earning money abroad. It really is a mixed bag but of note none the less.
“In Q4 2011, there was a 15% increase in people bringing money back to the UK probably due to the Euro crisis which sparked panic and saw people moving money back to locations seen as safe havens.”
Indeed, the Eurozone sovereign debt crisis has caused fear to spread but for those considering buying property abroad, the reduction of the value of the single currency means that now is in fact one of the cheapest times to buy a place in the sun.
“There is a lot of confusion and scaremongering going on in the Euro at the moment but in spite of this, overseas property buyers should rest assured that the single currency devaluation will mean that they will currently be able get over 8% more for their money than if they were buying Euros in July last year.
For more information on currency exchange contact the experts at Currency Index on 0800 043 2623 or visit www.currencyindex.co.uk.