When discussing pounds, dollars exchange, euro exchange and so forth, it's easy to become quickly confused. If a currency strengthens or weakens against another, what does that actually mean to you?! In order to understand currency exchange matters, it's often easiest to review real situations with real losses or gains.

Check out our following case studies and determine which one might be similar to your own situation. Or, give us a call on our free phone number: 0808 163 0102 as we'd be happy to discuss your particular details!


Case Study 1.

Richard was returning to the UK in March 2004 having undertaken contract work in Thailand for the previous two years. He had 5.5 million Thai Baht to send home. The Thai Baht was converted by his bank at a rate of THB74.25 to the £1. If he had gone to a currency specialist he would have got a rate of THB73.2 to the £1, which would have increased his sterling funds by £1,062 to £75,136.

Case Study 2

In January 2005, Charles had decided to purchase a holiday home in Orlando taking advantage of the weak US$. His holiday home, including costs, was US $185,000. The bank that he used exchanged his sterling funds at US $1.80 to the £1. If he had used a specialist currency broker he would have got closer to US $1.84 to the £1. He could have saved £2,211, as his total cost would have been £100,543 rather than £102,754.

Case Study 3

Nat is a very keen skier and wanted a home in the Alps for a long time. He finally realised his dream in October 2004. The initial payment on the unit was €163,575. His initial quote from a bank was for a euro exchange of €1.385 to the £1. However he decided to go to a currency specialist and he obtained a quote of €1.415 to the £1. Nat saved €2,504 on his euro exchange. His savings has paid for plenty of ski passes and lots of après ski.

Case Study 4

Following the success of the Lord of the Rings trilogy, Michelle decided she wanted to spend some time in the beautiful country of New Zealand. In August 2004 she decided to take a sabbatical and spend six months 'down-under.' Michelle budgeted to spend £15,000. Her bank exchanged her sterling into New Zealand dollars at NZ$2.61 to the £1 which gave her NZ$39,150. If she used a currency specialist, Michelle could have increased her spending funds by as much as NZ$1,500.

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