Getting the Best Foreign Exchange Rate for NZ Dollars

Most people use a bank for foreign exchange transactions when they go on holiday. The convenience and ease of using a bank can make up for what you lose on fees and an unfavourable exchange rate. But when you're planning to exchange sizeable sums of money it is wise to consider alternatives to using a bank, as they seldom offer the most competitive terms. 

Advantages of Using A Specialist Foreign Exchange Dealer 

• Expertise and Specialist Service
  When you use a specialist foreign exchange dealer you gain access to their considerable expertise and also to their specialist services such as limit orders and forward contracts.
• Time and Money
  Having a currency purchasing strategy in place can save you from countless hours watching the exchange rate, waiting for a good rate and trying to guess where it will head next.
• Meeting Your Exchange Rate Targets
  With a limit order, you can specify a target exchange rate. When (and if) the market reaches your target, you will automatically buy the New Zealand Dollars.
• Getting the Best From Favourable Rates
  With forward contracts; if exchange rates are favourable now but you do not have liquid funds quite yet, you may like to consider using forward contracts to “lock in” the current rate. A forward contract means that you can buy the currency now and pay for it later (when, for example you receive funds from a house sale or an investment maturity). Typically, you will be required to pay a 20% deposit straight away and the 80% balance upon the maturity of the contract

The timing of your currency transfer is typically dictated by practical considerations, such as the availability of liquid funds or the need for them. The sooner you talk to a specialist foreign exchange adviser, the more flexibility you will have within these constraints.

This article was supplied by Broadbase International Ltd (www.broadbaseinternational.com). Information contained in this article is of a general nature and is not intended as a substitute for professional advice based on your individual circumstances. Disclosure statements are available on request and free of charge.