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Our partner Currencies Direct

Founded in 1996, Currencies Direct Limited provides foreign currency exchange and international payment services for corporate and private clients. The group operates from its Head Office in Canary Wharf, London, with offices in Europe, N.America, S.Africa, Asia and Australia, transacting circa £10bln per year and circa 1m payments.

Currencies Direct can help you reduce the cost of repatriating currencies while conveniently managing foreign exchange risks through various products. Clients can access their accounts at any time via the online platform or by speaking to their account manager. More than 430,000 people and businesses have saved time, hassle, and money by using Currencies Direct.

How can Currencies Direct support our clients?

A 20% variation in foreign exchange rates can affect individuals or businesses making substantial property purchases abroad. This level of fluctuation introduces significant currency risk, potentially leading to considerable financial consequences.

When the exchange rate of the required currency depreciates by a significant percentage against the home currency, it means that the cost of the foreign property purchase has increased by the same ratio. For instance, if an investor planned to buy a property valued at $1 million in a foreign country and the exchange rate shifted unfavourably by 20%, the property would effectively cost $1.2 million in their home currency.

This risk is particularly concerning for property buyers because real estate transactions often involve large sums of money and long-term commitments. With property developments and purchases often taking months to complete, exchange rates can see significant movements within that time, making budgeting extremely difficult. A 20% currency depreciation can turn a financially sound investment into a substantial financial burden. It may lead to increased debt, difficulty meeting mortgage payments, or even the inability to complete the purchase.

Potential property buyers can consider various strategies to mitigate this risk, such as using forward contracts to lock in exchange rates. Understanding and proactively managing currency risk is essential for anyone contemplating substantial property investments abroad to safeguard their financial interests in an ever-fluctuating global economy. Currencies Direct are our recommended foreign exchange and international payments partner to support our clients in this way.