Almost a quarter of all foreign exchange transactions in 2011 (24.99%) were sent to Spain. However, while France took the third spot with 14.83% of all transactions followed by the US in fourth place at 9.01%, one of the most surprising results was the volume of transactions sent to the UK last year, according to date by Currency Exchange Index.
Robin Haynes, Managing Director of Currency Index explains that 18.10% of foreign exchange transactions last year were made back to the UK. "This is most likely a result of people returning home from overseas or in a few cases sending currency to UK-based Euro/USD accounts. In addition, part of these transactions will be business clients repatriating income and also individuals earning money abroad. It really is a mixed bag, but of note none the less," says Haynes.
In Q4 2011, Currency Index witnessed a 15% increase in people bringing money back to the UK. This was probably due to the Euro crisis which sparked panic and saw people moving money back to locations seen as safe havens, according to Haynes.
On a more positive note, The devaluation of the Euro does offer benefits to those thinking of buying property abroad says Haynes.
"There is a lot of confusion and scaremongering going on in the Euro at the moment but in spite of this, overseas property buyers should rest assured that the single currency devaluation will mean that they will currently be able get over 8% more for their money than if they were buying Euros in July last year."
Speaking at Professional Adviser's conference
Equity release panel
Speaking at PA360
TISA's Peter Smith
Shone a light on 'closet trackers'