Disclaimer: this material is not investment research as defined by the Financial Conduct Authority
Greece is the word
Greek banks have reopened after an agreement was reached between Athens and the Eurozone on cash-for-reforms, which will makes it easier for locals and holidaymakers to manage their cash whilst in Greece. Currently restrictions on money transfers outside Greece still apply.
I’m going to the Greece mainland and the Greek Islands on holiday this summer, will this impact me?
Cash withdrawals from ATM's at Greek banks have reportedly been limited to €60, however this limit does not apply to withdrawals with foreign bank cards.
Plan your holiday money in advance to ensure your trip goes smoothly. Here are a few travel money tips for your trip:
1: Cash vs cards? Consider spreading your funds across cash and a prepaid currency card and keep a credit card to hand in case of emergency to cover all eventualities. Having up to £250 in cash for emergencies or day-to-day spending is a reasonable amount under normal circumstances, but it might be wise to increase this and have a daily cash budget available whilst Greece finds stability and the ATM situation is resolved. ATM withdrawal limits are still in place, even though it is said not to apply to foreign bank cards (eg.your FAIRFX prepaid currency card), and many ATM's are said to be empty or shut.
Loading a prepaid currency card prepaid currency card before you go will keep your Euros safe as well as giving you 24 hour access to your travel money when you want to spend.
A prepaid card will also provide the added benefit of letting you lock in great rates whilst the pound is enjoying highs against the Euro, meaning your money could go further. Remember a prepaid currency card is valid for up to 3 years, after which you simply renew, so if you don’t spend it you can choose to keep it on the card for your next trip or simply cash in what’s left when you get home.
FAIRFX Currency Cards are MasterCard® cards, so should continue to work as normal in Greece and will be accepted anywhere you see a MasterCard brand mark.
Stay up-to-date on the news while in Greece so you are completely prepared.
2: Be cautious of how much cash you carry. Having travel insurance is a no-brainer but be sure to check the small print to see how much cash you are covered for in case it gets lost or stolen. Savvy travellers will make use of their hotel safe or deposit box to store extra cash, but if it is lost or stolen many travel insurance companies will only cover you for up to £250. If you’re planning to take all of your holiday spending money in cash, it’s vital you check the small print of your travel insurance policy before you go so you know what is covered so you don’t get a nasty shock when you have to make that dreaded claim.
3: Euros still king for now. If Greece is forced to exit the Euro, it is unlikely this would happen overnight and instead there would be a long transition period to the Drachma. Holidaymakers heading to Greece this summer are unlikely to be affected by such a transition but those going later in the year need to keep an eye on events.
4: Timing is everything. With the pound doing better than most major currencies, keeping on top of the news on Sterling is crucial if you want to bag a deal on your holiday money before you go and not get caught out. Keep up-to-date by registering for currency alerts and take your money further.
I have a property in Greece and I’m paying off the mortgage, how will this impact me?
If you’re regularly sending money to Greece for your mortgage, then you might see the value of how much you get for your Pounds impacted. Currency rates are unpredictable so it’s impossible to say which way it will go, but if the rate moves in your favour we’d suggest you speak to your account manager sooner rather than later about the option to book a Forward Contract to cover your monthly payments for up to a year.
My company is importing from / exporting to Greece, how should I manage my currency exposure?
a. If you are buying goods or services from Greece, take advantage of the current rate of exchange by locking in a Forward Contract. Sterling is currently enjoying 7-year highs against the Euro, so lock in this rate to take your money further when importing.
b. If you are selling goods or services to Greece, your main consideration will be exchanging Euros back to Sterling as the rate is dire. Speak to your account manager about a Limit Order to capitalise on any rate changes in your favour. Should Greece put any limitations on currency leaving the country to manage their liquidity, you might want to consider putting some safeguards in place such as asking your buyer to use a non-Greek bank or ensuring funds have cleared before shipping any product.
Limit Order explained.
Get in touch with your currency dealer today if you have any further questions about international money on firstname.lastname@example.org or 020 7778 9350 or take a look at our currency card rates to take your holiday money further.
To get travel cash delivered to your door, simply order here.
Wednesday 24 June 2015, 06:00pm
What is an OCO?
OCO: One – Cancels – The – Other (cap and collar)
A pair of orders stipulating that if one order is executed, then the other order is automatically cancelled. An OCO combines a stop loss with a limit order, when either the collar (stop) or cap (limit) is reached and the order executed, the other order will be automatically cancelled.
• Gives you ultimate control over your money and puts in rigid safeguards to protect you against any losses.
Wednesday 24 June 2015, 05:28pm
What is a Stop Loss?
A payment order that limits your loss if you’re aiming for a higher rate, and the market takes a downturn instead. It allows you to mitigate risk if the market goes against you, without having to constantly watch the market as the Stop Loss engages automatically.
• A sure method of minimising any potential losses without having to watch the market the whole day
Example: A marketing agency wanted to achieve a rate of 1.63 when sending GBP over to the USA for a trade show. The GBP/USD rate at the time of contact was 1.61 so a stop loss order was set at that rate. The rate then rose slightly over the next 17 hours hitting its peak at 1.623 but began to drop significantly thereafter. The Stop Loss kicked in on the 9th of October at 1.61 getting the firm $161,000.00 for their £100,000.00. After the stop loss kicked in, the rate continued to drop down to 1.58 which would have cost the firm £3000. Stop losses allow business time for the market to improve but stops them from losing out if the rate suddenly turns against them.
Wednesday 24 June 2015, 05:26pm