Economic Uncertainties Hit Sterling

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Economic Uncertainties Hit Sterling

Sterling has been really feeling the pressure over the last 4 weeks with inflation topping 7%, supply chain issues and an economy struggling for growth all contributing to Sterling falling to a 18 month low against the USD and heading to a similar fate against the single currency.

Written exclusively for Expat Network by Currency Index

The early gains made this year have all been wiped out, in fact we are 5 cents below the year’s highs, a GBP to EUR transfer of £200,000 now getting you 10,000 euro’s less, causing significant reduction in budgets for hopeful buyers. The predictions of growth stalling this year and inflation topping 10% could further provide obstacles and limit any gains. It is, of course, not just the current markets it effects, the cost of living going up will impact any savers who have to dip into their property budget to see them through and will impact what you can buy overseas.

Over in France Macron fought a closer than anticipated election from Le Pen and came up trumps, providing stability to what could have been a potential turbulent time for the country. Along with Germany, France is a big contributor to Europe, a Marine Le Pen government could have threatened ‘Frexit’ and cause the Bloc to revaluate where it stands.

Inflation however, isn’t much better in Europe, with German inflation hitting a 30 year high and growth looking fairly dim there too. The Russia-Ukraine conflict has seen oil and gas prices jump considerably, the increased prices and rising inflation will more than likely add pressure onto the ECB to raise interest rates to curb inflation.

The news isn’t all doom and gloom however, Q1 saw the highest number of overseas enquiries from the UK, the interest and desire to live abroad hasn’t waned.

During these specially turbulent times a currency broker is best placed to help mitigate any risk and help you through the process of moving your funds, please reach out to Currency Index today for a chat too see how they can help you with your purchase.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.