Volatile NZ Dollar risks large losses for immigrants

It has never been more important for would-be émigrés to plan the transfer of their assets

EXTREME volatility in the exchange rate between the Kiwi Dollar and the British pound is making it difficult to time best-value currency swaps.

Many travellers and recent immigrants to New Zealand use UK credit cards to both purchase essential goods and transfer money from Britain. Also, recent immigrants are looking to buy houses while the market is offering good value.

But for the last month the Kiwi Dollar has been the most volatile of the popular expat currencies according to HiFX HiFX, provider of foreign exchange and cash deposit services.

The huge swings in its value against Sterling meant that anyone transferring £200,000 in March risked losing a massive NZ$80,020 if they mis-timed the transfer.

This compares to just 40,000 Aussie dollars volatility for the same £200,000.

A spokesperson for HiFX says, "New Zealand remains a popular emigration destination for Brits but with such huge volatility in its currency it has never been more important for would-be émigrés to plan the transfer of their assets with a currency specialists to ensure that they start their new life abroad with as much money as possible."

Comments

[Domestic Executive]

The night I transferred our money to New Zealand was the most stressful of my life. I had been watching the kiwi for weeks and it tipped $3 to the GBP and I swooped. I used NZforex for the transfer and despite the due dilligence I didn't sleep properly for days until the pounds arrived as kiwi dollars into the bank account. We made around $80k watching and waiting. The kiwi hasn't been at that level since.

[William]

That's great timing. I don't think I have the patience to stake out a currency exchange but it really seems like that's what you need to do at the moment.

[forex training]

That is also a deterrent for potential investment oriented expats. If they feel that their hard earned money is not so prevailing, they might look elsewhere.