Clé France

Buying the Swiss franc may be the best hedge against the United Kingdom voting to quit the European Union (EU), according to HSBC — but not everybody agrees.

The British bank said the Swiss currency would likely rally strongly on a "Brexit," but would not weaken if the U.K. chose to remain in the 28-country political union.

June 23rd Vote

In just over two months time, on June 23rd, the UK will vote on Staying or Leaving the EU.

Since the start of 2016, Sterling has lost 10 cents against the Euro and 6 cents against the US Dollar.

Last year, the Pound Sterling struggled during the Scottish referendum on leaving the UK and many of the major banks believe the Pound will be under increasing pressure as June 23rd draws closer for our EU referendum.

There are strategies for clients to protect themselves and to hedge against the risks of the Brexit due to the uncertainty of the event.

One of these is called "Forward Buying" as this would enable you to lock in the rate now for a couple of months or protect a budgeted rate ahead of any potential exchange rate fluctuations which could impact your spending power.

Fixing your exchange rate in advance

Exchange rates can fluctuate dramatically so it can be risky to leave yourself open to market movements when converting money from one currency to another. Of course the rate could move in your favour, however, it could also move enough against you to completely ruin your budget and your plans.

A Forward contract with FC Exchange means you can fix your exchange rate for up to two years in advance, so you’ll know exactly how much you’ll get when you make your international money transfer. This makes budgeting a great deal easier and a lot of stress is removed.

Flexible settlement dates

You can ask us to book a ‘window period’ for you with the Forward Contract settlement date. This means you can settle in between two pre-determined dates that you tell us at the outset. This can be a really useful way to cover off foreign exchange risk if you don’t know the exact date when you’ll need to pay, but you still want to fix the rate. Again, this is really handy for property completions, because although you may have a firm completion date, funds can still take a few days to be released by a solicitor or notary.

Ben Amrany from FC Exchange follow this link or phone and ask for myself and quote "Cle France" on 020 7989 0000.

You may contact me directly using this form (click here) with your requirement and I will explain the options that are available to you in getting the best exchange rate.