As we recover from the overindulgences of the festive period, many of us begin to think of the ambitious plans we have for the year ahead. New Year’s resolutions can cover all manner of things – from bungee jumping to improving your diet, but for those setting their sights on a fruitful 2015, it is important to spare some thought for the health of your personal finances.
For many expatriates living in the UAE, there will come a time when you will need to make an international payment to another country – perhaps your country of origin. If you are transferring money overseas regularly, these transactions should form a key part of your personal finance planning – so specific attention should be paid.
As we kick off 2015, now is a good time to harness New Year motivation to find the best foreign exchange services available. So here’s how:
Compare, compare, compare
One of the first actions on any foreign exchange health kick is to look into the array of international payment providers out there and what they can offer. There is a wealth of providers to choose from, from banks to foreign exchange specialists. Once you know the options available, you’ll be on the right track to choosing a provider that best suits your needs.
What it costs
As part of your research, it is important to assess the exchange rates and transfer fees that could be applied. It is worth noting that in many cases banks can charge a margin of 3 to 4 per cent on currency transactions. It is smart to shop around to compare the exchange rates on offer – you could end up finding a provider that saves you a significant sum.
Track the rates
Take into account exchange rate fluctuations. Even small currency movements can have a knock-on effect on the final value of a transaction. For instance the rate of the dirham against the British pound fluctuated from a low of 6.31 to a peak of 5.70 in 2014 – creating a difference of £1,696 (Dh9,462) in a transfer of Dh100,000 during this period.
Speak to the experts
It is important to speak to your foreign exchange provider to understand the currency risk that you could face. A currency expert is able to offer guidance on different currency markets and help you to take steps to manage your risk of exposure to volatile exchange rates.
Weigh up your options
Foreign exchange can seem complex and risky, but you should be aware that there is a range of tried and tested products available to support your needs. When looking at the international payment providers available, be sure to ask questions to find out more about the services and products on offer.
Save on monthly remittances
If you are making regular payments – let’s say to pay a mortgage outside the UAE – it could be worth considering a forward contract. This allows you to agree an exchange rate in advance so you know exactly what rate you will get on the day you make a transfer. Locking in an exchange rate is beneficial as it manages the risk you are exposed to from significant currency fluctuations.
For instance, if the currency of the country where your property is based appreciates over three months, a forward contract for that same period would guarantee you a previously agreed exchange rate on your transfer. This means you know in advance how much the transfer will be worth, ensuring you have complete clarity in your financial planning.
This guide will help you to form an international payments plan that suits your requirements – be it a transfer for savings, a mortgage or a bill payment. Once your foreign exchange is in check, you will have the peace of mind to make the most of ambitious plans for the year ahead.
Matt Leonard is the managing director of international payments at Moneycorp.
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The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
Pari
Produced by: Clean Slate Films (Anushka Sharma, Karnesh Sharma) & KriArj Entertainment
Director: Prosit Roy
Starring: Anushka Sharma, Parambrata Chattopadhyay, Ritabhari Chakraborty, Rajat Kapoor, Mansi Multani
Three stars
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
The Bio
Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
Day 1 results:
Open Men (bonus points in brackets)
New Zealand 125 (1) beat UAE 111 (3)
India 111 (4) beat Singapore 75 (0)
South Africa 66 (2) beat Sri Lanka 57 (2)
Australia 126 (4) beat Malaysia -16 (0)
Open Women
New Zealand 64 (2) beat South Africa 57 (2)
England 69 (3) beat UAE 63 (1)
Australia 124 (4) beat UAE 23 (0)
New Zealand 74 (2) beat England 55 (2)
JOKE'S%20ON%20YOU
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Types of fraud
Phishing: Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.
Smishing: The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.
Vishing: The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.
SIM swap: Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.
Identity theft: Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.
Prize scams: Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.
* Nada El Sawy
If you go
The flights
There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.
The trip
Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.
The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.
Abu Dhabi GP schedule
Friday: First practice - 1pm; Second practice - 5pm
Saturday: Final practice - 2pm; Qualifying - 5pm
Sunday: Etihad Airways Abu Dhabi Grand Prix (55 laps) - 5.10pm
Farasan Boat: 128km Away from Anchorage
Director: Mowaffaq Alobaid
Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani
Rating: 4/5
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
EXPATS
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