Are you a Brit, planning to transfer money to Japan from the UK?
This could be because you intend to emigrate to Japan, to find work and buy property abroad in Tokyo or Kyoto. This might also be because you're about to study abroad in Japan, to learn Japanese at one of Japan's top universities.
Alternatively, are you a British business owner, making international payments to Japan, to import Japanese goods or services for your UK company?
This could be because you intend to import top Japanese brands, such as Sony electronics or Toyota cars, to sell to your customers. This might also be because you're buying Japanese electronics or manufacturing components, for your UK factory assembly line.
Whatever your reason to transfer money to Japan from the UK, you'll get a competitive British pound to yen exchange rate as much as you can.
This is because this will lift your Japanese yen total in your Japanese bank account. In turn, this will cut your costs to emigrate or study abroad in Japan, or to import Japanese goods or services to Great Britain.
So what can you do to boost or GBP to JPY exchange rate, for when you transfer money abroad? Well, find below five methods, from the foreign exchange broker Pure FX:
1. Plan Your Money Transfer to Japan as Far in Advance as You Can.
This is because, the sooner you start to think about exchanging pounds to yen, the more time you have to figure out the best way to do so for you.
Also, if you plan to exchange pounds to yen beforehand, this gives you more time for a favourable exchange rate to become available.
After all, if you start looking at sterling's value versus the yen six months before you emigrate to Japan, that's a bigger window than if you only think about your currency a week before you need your yen. In foreign exchange, the early bird gets the worm.
2. Keep Tabs on The Pound to Yen Exchange Rate.
To find out what's today's pounds to yen exchange rate, first go to Pure FX's Rates & Tools page. Then, on the Latest Market Rates Widget, select 'GBP' to 'JPY'. These are the pound and yen's three-letter international currency codes.
Then, you'll see today's pounds to yen exchange rate, as well as the exchange for the last seven days.
So you can easily see if British sterling is strengthening versus the Japanese yen recently. In turn, this will help you to decide when it's the right time to transfer money to Japan for you.
However, it's worth bearing in mind that the exchange rates featured on Pure FX's Rates & Tools page are the interbank rates.
These are the exchange rates that international banks use to transfer vast sums to each other on a daily basis. These exchange rates can't be accessed by individuals or normal businesses.
That said, we can still use the interbank exchange rates, to see if the pound to yen exchange rate is rising. To get a pound to yen exchange rate quote, go to the top-right of this page, and fill in the 'Get A Free Quote' form.
3. Find Out What Factors Are Affecting The Pound to Yen Exchange Rate Lately.
When you know which factors are influencing the value of British sterling versus the Japanese yen, you can use this to help you decide when to exchange currencies.
An easy way to see what's affecting the pound to yen exchange rate recently is to go to Pure FX's GBP to JPY Exchange Rate Updates page, and click the latest article.
Here, you'll see if the pound to yen exchange rate has strengthened recently, and whether factors like the Bank of England or Japan's economic growth rate are influencing the exchange rate.
Typically, factors that can influence the value of the pound versus the yen include the UK and Japan's economic and political stability.
For example, has the UK economy accelerated recently, or is Japan about to have a general election? If so, we might expect the GBP to rise versus the JPY.
Alternatively, is the Bank of England likely to cut interest rates, or has Japan signed a new trade deal with China? In this case, the pound might fall in value against the yen in the near future.
4. Be Realistic About The Pound to Yen Exchange Rate You Expect to Get.
For example, if sterling's value versus the yen today is 140.00, it might be unrealistic to want to transfer money to Japan at 200.00.
Instead, to help you decide when to exchange pounds to yen, think about whether with today's exchange rate you'll get the yen total you need in your Japanese bank account.
After all, if you're buying a property in Japan, you'll want enough yen to pay the asking price. Waiting for the exchange rate to rise higher so you can get more yen than you need might not be practical for you.
Also, another thing to keep in mind if you're waiting for the exchange rate to rise is that, while you're waiting, sterling's value against the yen can also fall.
This is because the foreign exchange markets are often volatile, subject to the latest economic and political news from the UK or Japan. So to avoid disappointment, target an exchange rate that gives you the yen total you need for your objectives.
5. Consider Protecting Yourself Against Currency Volatility with A Forward Contract.
Are you concerned that the pounds to yen exchange rate might weaken between now and when you intend to transfer your money to Japan?
If so, you might be interested in setting up what's called a forward contract. With this, you lock in the exchange rate at today's level, then transfer your money to Japan at any time you choose up to one year in the future.
This way, even if the exchange rate weakens three or six months from now, you'll get the exchange rate you've secured in advance.
To set up a forward contract, you put down an initial 10% of the total amount you plan to transfer. There's no additional cost, and it can give you peace of mind that you'll receive the yen total you need.
I hope that you've found this article useful. If you have any questions about how to transfer money to Japan from the UK, Contact Us. One of Pure FX's friendly, helpful currency dealers will get back to you as soon as we can.