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The impact of Covid-19 - What lies ahead for our currency markets

Here, our colleagues at XE, Alliott Group’s Global Preferred Partner in Foreign Exchange Services, look at what lies ahead for our US Dollars, Euros and Pounds in the weeks to come.

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Over the last few months, the world’s currency markets have been experiencing high volatility with major currencies moving sharply on a daily and even hourly basis. We all know this as a result of the impact that COVID-19 has had and continues to have on the world economy.

It’s at times of volatility like this, whatever event or happening is driving volatility in the markets, that, as currency specialists, we are being asked to dust off that fabled crystal ball and tell all about what lies ahead for our US dollars, Euros and Pounds in the weeks to come.

Sadly, there is no crystal ball – well not on the trading floor anyway! It’s understandable that people and businesses are seeking extra support and guidance at this time, when making their international payments and simply want to get some idea as to how they are being impacted and what might happen next.

No-one can be 100% sure as to what will happen in the coming weeks and months but there are steps that can be taken to make sure we are all ready to react when the currency markets do. Currency specialists are not just around during times of crisis; they’re partners for life! But many businesses and individuals still choose to use banks for their international payments for several reasons, despite the easy access to specialist currency services today.

This may be because:

  • They’re not aware that better alternatives to the mainstream banks exist
  • There may be security questions that they're not sure how to answer
  • Its just easier to stay where they are - after all, if it isn't broken, why fit it?

More than ever in these uncertain times, your duty of care may extend past your own business and over to helping guide your clients make sound decisions around their overseas commitments or assets and with their international money transfers. Many of your clients may not understand that money transfer services offered by banks can be significantly higher in cost than those of a currency specialist. More importantly they may not realise that retail banking doesn’t provide access to the same risk management tools and services that providers like Xe give to their clients as standard. If they don’t know this, they may not realise how quick and easy it is to access expert services or what stringent safeguards are in place to offer them high levels of security.

Working with a specialist currency partner provides you with a valuable extension to your advisory toolkit and also gives you peace of mind that your clients have access to timely and expert guidance on market movements, competitive foreign exchange rates, and a comprehensive suite of risk management products that will enable them to react quicker, or indeed more proactively with the management of their international payments.

Think about your base of clients and your own international payments requirements:

  • Do you have any corporate clients that import/export?
  • Do you have any clients that are expats, migrants or people with no ties to an overseas country?
  • Do you have clients buying or selling international property or luxury goods such as boats, cars or aircraft?
  • Are any of your clients sending our receiving mortgage or corporate clients?
  • Do you send funds internationally following a property purchase/sale?
  • Do you administer any trusts/estates for overseas payments or remittances?

If the answer to any of these questions may be yes, then Xe can assist.

About Xe:

As a partner to the Alliott Group, Xe provides foreign exchange and international payment services that can be offered to your clients via their Introducers model. It is as simple as you introducing Xe and their services to your clients and Xe will take care of the rest.
Furthermore, Xe can help your business manage its own international payment requirements. Whether you are still using your bank or already using a specialist provider, why not at least benchmark their foreign exchange rates and services against your current provider, as part of your duty of care obligations.
To learn more about Xe's services for you or your clients, please reach out to your local Xe representative:

Eleri Howe – UK and Europe – Eleri.howe@xe.com
Kevin West – North America – kevin.west@xe.com
Marcus Phillips – APAC – Marcus.phillips@xe.com

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