Our Partners Moneycorp have given us this insight into how Brexit, and the continuing uncertainty in the UK market has affected your NZ money transfers:
"So after the hype and hysteria all year, the vote has come and gone. In June, the UK voted to leave the EU by 52% to 48%. Leave won the majority of votes in Wales and England - every council in Scotland saw Remain majorities. The result was unexpected by a lot of people and shocked the financial markets. As a result the pound weakened considerably against all currencies including the Kiwi Dollar.
Further to the result, David Cameron officially resigned as the UK Prime Minister causing political instability. With the Labour party also in crisis there was a political vacuum at a time when the country most needed to show leadership. The combination of the Referendum result and the resignation of David Cameron caused major worries and the pound has remained largely much weaker against the New Zealand dollar. This leads us to the question, the majority of people have voted for Brexit so what happens next?
Following the result, the only certainty has been the uncertainty. And uncertainty is never good for the financial markets. Theresa May becoming Prime Minister has helped provide some degree of stability but many unanswered questions remain which we currently don’t the answers to, some of these key questions are below.
When and will we trigger Article 50 to formally notify the EU that the UK is leaving?
Will we still have access to the single market?
What does Brexit really mean for the UK economy?
Will Scotland hold another Independence Referendum?
All these questions are important because they affect businesses in the UK and how they can plan ahead – also for investment in the UK from other countries it’s important the message is that we genuinely are still open for business. What happens next will also heavily affect the exchange rates and the pound against the New Zealand Dollar.
Of little surprise on Thursday, The Reserve Bank of New Zealand (RBNZ) made an interest rate cut by 25 basis points to a record low of 2.0 percent. A strong kiwi Dollar drove the RBNZ to make the change, however the reduction was smaller than expected, with some going into the policy meeting with expectations of more aggressive easing and a larger 50 basis point cut.
On the back of the smaller than expected cut, the New Zealand Dollar surged in strength to its highest in more than a year. With sterling under further pressure from poor UK data releases, the New Zealand Dollar strengthened further as the exchange rates continued to fall.
If you need to transfer money overseas
In this climate of change and uncertainty, if you need to transfer money to or from New Zealand, it is more important than ever to speak to an expert foreign exchange company.
Exchange experts Moneycorp provide free expert guidance and information on the exchange rates - they offer competitive exchange rates, often beating the banks by up to 4%. Importantly they also provide expert guidance on when to transfer your money. As the exchange rate is always moving this is an important feature which can help you to save even more money."
You can register for a free Moneycorp account here. Once registered, you will have your own account manager who can discuss your money transfer requirements in detail.
Alternatively, you can speak to our Account Manager, David Newson on 0207 828 7000 or email on email@example.com