Euro Accounts

cogito

I'm in the process of buying property abroad (EU country) and want to insure against the £ losing more value against the €. I assume this means buying euros and leaving them in a deposit account until I need them.

I have also heard that it's possible to get an exchange rate fixed for up to a year but am unable to find details.

Can anyone point me in the right direction?

Baldur

I have also heard that it's possible to get an exchange rate fixed for up to a year but am unable to find details.

Do you mean something like this?

cogito

That's interesting. They seem to think that the exchange rate is going to improve over the next 12 months.

cogito

Thinking this over a bit more, the rates quoted are for delivery in a certain date range. As I'll be building a house with stage payments, I won't know exactly when I'll need the money. Maybe an instant access account would be more suitable.

purch

They seem to think that the exchange rate is going to improve over the next 12 months.

No..it has nothing to do with that

The Forward Rate is a calculation based on the current Spot, and the 2 interest rates over the period in question.

It has nothing to do with what the exchange rate is expected to be at the future date.

Basically if you bought EUR for 12 months forward you are 'locking' in the current Spot Rate, with an adjustment to allow for the different interest rates.