Getting over the initial shock
Currency markets don’t like uncertainty. Few of us do. That’s why we wanted to give you some options on how to plan for currency exposure with some level of certainty. Because even in the middle of all this, people still need to move money globally.

Giving yourself more certainty
Currency markets have seen some violent swings recently as news emerged from countries at different stages of the crisis. As China was in the throes of the crisis, the Australian dollar weakened considerably against the US dollar given its price is so closely linked to the health of the Chinese economy. As news changes day-by-day, the volatility remains.

Similarly, the US dollar strengthened against the Canadian dollar the day New York announced its lockdown, largely as a result of action being taken by the US to halt the spread of the disease.

The picture is very similar in Europe. Spain, Italy and France had all been in lockdown for some time before the UK took equivalent action. On March 20, the pound fell to €1.1412 – a 10-year low – but had recovered to €1.2518 on April 15.

How can OFX help you create certainty?
We have a number of tools that can help you in the coming months to reduce the amount of risk you are taking when it comes to currency:

Forward Contract – this allows you to fix the rate you will receive for between a week and a year, so you can be confident of the exchange rate you receive, no matter what happens to rates.

Limit Order – a limit order can be used if you want to target a rate that you are happy to move money at. These are generally provided alongside guidance from one of our OFXperts, so you set a target a rate that you have a realistic chance of achieving in the market conditions. Once the rate is hit, your transfer happens automatically.

Rate Alerts – if you prefer to know when the market hits a specific rate before you transfer, then you can sign up for rate alerts. Set rate alerts yourself online, or speak with one of our OFXperts to set these up for you.

To take advantage of your preferred rate and VIP service through the BABC follow this link.  Should you have any questions please don’t hesitate to reach out directly to your account manager, Sosefo Mailangi.

  1 888 288 7354

   Sosefo.mailangi@ofx.com