Do you intend to transfer money to Norway from the UK this year? In other words, are you planning to exchange pound to krone, or GBP to NOK?
This could be because you're a Briton about to emigrate to Norway, to buy a property and find work in Oslo or Bergen. Alternatively, this might be because you're a UK business owner, and you're making international payments to import Norwegian goods.
In either case, you'll want to get a competitive exchange exchange rate, to get the highest krone total you can in your Norwegian bank account.
So what can you do to get more krone, when you transfer money to Norway? Well, find below five tips, that you might find useful when you exchange pound to krone.
In addition, you can Get A Free Quote for exchanging GBP to NOK, by entering your details into the form on the right-hand side of this page.
One of Pure FX's friendly, professional currency dealers will reply to you very quickly. He or she will give you a highly competitive exchange rate quote, and offer their expertise for your money transfer to Norway from the UK.
1. The value of the Norwegian krone correlates closely with the price of oil.
The first tip to help you lift your GBP/NOK total is to know that the Norwegian krone frequently moves side-by-side with the oil price.
This is to say that, when the price of oil rises, the Norwegian krone may rise too. Also, when oil becomes cheaper, Norway's currency often falls in value.
Why is this the case? Well, it's because Norway is the largest oil producer in Western Europe, and oil is Norway's biggest export. So when the price of oil fluctuates, this has a clear, direct impact on Norway's economic performance. This often affects the value of the krone.
Of course, if you're transferring money to Norway from the UK, you'll want the pound to be as strong as possible, and the krone's value to be low as can be.
So when the oil price falls, it's worthwhile checking if the Norwegian krone has weakened too. This might help you to decide when to exchange pound to krone, for a higher NOK total.
2. The UK and Norway's interest rates are two factors that strongly influence the value of GBP and NOK.
So when either the UK or Norway raises or cuts its borrowing costs, this often has a clear effect on the value of their currency.
With this in mind, if you're looking for information about what might affect the GBP/NOK exchange rate in future, check whether the Bank of England or Norges Bank are being tipped to change their interest rates.
This could give you an idea, among many other factors, of whether the pound to krone exchange rate may rise or fall, looking ahead.
3. You can stay up-to-date of the pound to krone interbank exchange rate on Pure FX's Rates & Tools page.
To check the current GBP/NOK interbank exchange rate, first go to Pure FX's Rates & Tools page. Then, on the Latest Market Rates Widget, simply select 'GBP' to 'NOK' from the two currency buttons.
This will tell you the British pound's current value versus the Norwegian krone, as well as for the last seven days. This way, you can easily see if sterling is rising or falling against the krone.
It's important to mention that the exchange rates featured on Pure FX's Latest Market Rates Widget are the interbank rates. These are the rates that global financial institutions use to swap vast sums between each other on a daily basis.
They can't be accessed by individuals or normal businesses. However, we can still use the interbank exchange rates to illustrate whether the pound is rising or value in value versus the Norwegian krone.
4. Consider if you'd like to protect yourself against possible exchange rate volatility.
Do you need to exchange pounds for Norwegian krone now, or at some point in the foreseeable future? If your answer is the latter, it's worth bearing in mind that the GBP to NOK exchange rate can fluctuate between today and when you plan to buy your Norwegian krone.
This is to say, between now and the date of your money transfer money to Norway, sterling could rise or fall in value versus Norway's currency.
If you're worried about this possibility, and you think the current pound to krone exchange rate is favourable, you can lock in this exchange rate with what's called a forward contract.
With a small deposit, a forward contract fixes your exchange rate for up to one year in advance so that, when you come to exchange GBP to NOK, you get the exchange rate you've previously locked in, even if the value of the pound to krone has fluctuated in the meantime.
This can be useful, if you plan to buy a property in Norway for example, and you want to know exactly what krone total you'll receive in your Norwegian bank account, without yet sending your money to Norway.
This can also be useful if you think that sterling could weaken in the foreseeable future, or the krone strengthen. A forward contract can help give you peace of mind.
5. Speak to one of Pure FX's friendly currency dealers about your money transfer.
Is this your first time transferring a significant sum of money to Norway from the UK, whether to emigrate, buy a property or for your business?
If so, you might be unsure how money transfers works, what IDs and proofs of address you'll need, or whether your Norwegian bank might charge you a fee.
Also, you could be uncertain what's happened to the pound to krone exchange rate recently, and what's affected the exchange rate in the past weeks.
If this is the case, simply call a Pure FX currency dealer, on +44 (0) 1494 671800 or email [email protected] He or she will have years of experience helping people like you transfer money abroad, and can answer your questions, in plain-English, jargon-free language.
He or she will help you feel comfortable about exchanging pounds to krone, whatever the reason.
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Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email [email protected]