UK economy in a period of uncertainty as talk of EU withdrawal lingers

Dithering over the UK's future in the EU is the last thing the British economy needs right now and for the sake of SMEs, the Prime Minister needs to bring some certainty to the table.

The impact on the British economy and Sterling of a UK withdrawal from full EU membership is potentially enormous. Even speculation around such a move is making waves both here and abroad, as recent warnings out of Europe and the US have demonstrated. Matters of immigration, employment, taxation, trade and investment, tariffs as well as exports and imports are just some of those overseen by the EU, which would likely need to be redefined if the UK were to go it alone.

While this may create a favourable opportunity for British businesses, as the opportunity could be seized to cut red tape and enhance growth policies, or cause woes for Britain by isolating it from its major trading partners in Europe, the main concern at present is the lack of certainty over the government's stance on the issue. Such uncertainty is causing volatility in the currency markets and hindering the ability of UK businesses large and small to plan for their future.

It is crucial this debate reaches the light of day and is explored in full, instead of being left simmering in the background. The global economy is uncertain enough in 2013 for British firms and employees, without blurring the lines even further by avoiding the issue.


For more information on Smart Currency Business call: 0845 638 0571 (or +44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyBusiness.com

Transfer money to China in Renminbi (CNY or RMB) – What you need to know

 You can transfer money to China with Smart Currency. Smart offer you the facility to make money transfers into Chinese Renminbi (CNY) bank accounts in mainland China and Hong Kong.

China is a very highly regulated destination for money transfers, and sending money there can sometimes be difficult. Before you make any money transfer to China, read our guidelines below so that you are aware of the requirements for payments being sent to the China and Hong Kong in CNY in order to avoid payments being delayed or returned.

If you are unsure or require any further information or assistance, we would be more than happy to help.

Existing clients can go directly to their trader, or if you are interested in speaking to us at Smart, send us an email at info@smartcurrencybusiness.com, call us on 020 7898 0500 or visit the Smart Contact page.  

Businesses transferring money to China

If you are a Business wishing to make a payment to another company in China or Hong Kong in CNY:

The receiving business in China must be a 'Pilot Enterprise’ (i.e. approved by the PRC regulatory authorities) – Check with your beneficiary that they are a Pilot Enterprise BEFORE making any payment instructions.

If you are a Business wishing to pay salary/expenses/dividends of employees or shareholders based in China in CNY:

Your money transfer must be paid to a UK Corporate account with a bank in China. Please make sure the account details provided to us are valid for this purpose BEFORE booking a trade with us.

If you are an EU importer wishes to pay a supplier in China in another currency e.g. USD:

These transactions fall outside the RMB (CNY) trade settlement scheme's scope but are permitted. Contact Smart Currency Business for help regarding any foreign currency exchange requirements.

If you are an EU exporter invoicing  their buyer in China in another currency e.g. USD. Where the buyer pays in USD

These transactions fall outside the RMB (CNY) trade settlement scheme's scope but are permitted.

Individuals sending money to China

There are even further restrictions when individuals are in need of transferring money to China in CNY. With Smart Currency, your payment requirements will be taken on a case-by-case basis and we would be more than happy to assist you with information regarding sending CNY to China. Please get in touch with us to see how we can help reduce the costs of your money transfers.

For more information on Smart Currency Business call: 0845 638 0571 (or +44 (0)207 898 0541 from outside the UK) or visit the Smart Currency Business website

Currency Update - Euro close to 1.20 against sterling

Sterling suffered its biggest weekly loss against the euro in almost a year last week as the fragile state of the UK's economy started to be reflected in the markets.

We are approaching a key support level of 1.20 interbank as sterling continued its bad week on Friday dropping for a sixth consecutive day against the euro falling to 1.2060 - the lowest since April 2012, following the release of terrible manufacturing production data which showed it shrinking by 0.3% when growth of 0.5% had been anticipated.

Very difficult to say what will happen if we reach the 1.20 support level but if breached, we could see a rapid loss in the value of sterling against the euro or we could see sterling bounce and start to regain lost ground.

If you are making regular transfers then it may make sense to secure part if not all of those transfers for the next three to twelve months.

If you are making larger transfers either way (sterling into euros or euros into sterling) then it may be sensible to do the same thing by either securing all or part of the amount to be transferred. Remember we can secure rates into the future using a forward contract.

For more information on Smart Currency Business call: 0845 638 0571 (or +44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyBusiness.com

Financial market movements - what events will make an impact?

Smart Currency Business Director Carl Hasty speaks to the press about the impact of elections, changes in national government and international events which could effect financial and currency markets.

“With the silly season behind us for another year, everyone is turning their attention to the year ahead and pondering the likely impacts on business operating conditions.

One often overlooked aspect for international traders is elections and leadership changes, which have the potential not just to affect domestic policy within that country but a variety of conditions including the currency, taxation, import duties and so forth. Currencies are particularly vulnerable to the uncertainties created in the days and weeks leading up to an election as speculation mounts on who will govern the country.

Israel is getting restless in the lead up to an election in 2013 and the Australian minority government is trailing in the polls with an election due by November. However, the uncertainty created by elections will be felt nowhere more sharply this year than in Europe, where most governments’ popularity is suffering at the hands of austerity measures.  Italy goes to the polls at the end of February, following Prime Minister Monti’s decision to step down.

More significant though will be Germany’s general election, when the rest of the world will be anxious to see whether Angela Merkel retains power and with it her grip on the Eurozone debt crisis negotiations. At present, it seems uncertainty itself is the only sure bet, meaning the world’s key currencies – particularly the Euro – may be in for a bumpy year ahead.”

For more information on Smart Currency Business call: 0845 638 0571 (or +44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyBusiness.com