Pound and Dollar Rises Versus Euro, Cutting Cost of Slovenia Property
Pound and Dollar Rises Versus Euro, Cutting Cost of Slovenia Property
22.10.2019
Are you an international buyer, intending to purchase a Slovenian property in 2019 or 2020, with Roni Nepremicnine?
If so, you might like the look of a beautiful two-storey house with a landscaped garden and Finnish sauna for €170,000, in Borovnica, about 20km from capital Ljubljana. Alternatively, you could be thinking about settling down in a spacious, three-room apartment with a balcony for €219,000, in Šiška, the most populous district of Ljubljana.
Whether you’re buying Slovenian real estate this year or next to emigrate with you and your family, or for a getaway holiday home, there’s lots of excellent properties on offer at Roni Nepremicnine.
Of course, if you’re an international buyer of Slovenian property, before you sign your mortgage and collect your front door keys, you’ll need to transfer your money to your Slovenian bank account, in euros. This is because Slovenia is a nation in the 19-member Eurozone, so if you’re exchanging currencies from the UK or United States, your local currency won’t be valid in Slovenia.
In addition, given that you’ll have to exchange currencies, you might wish to know what’s happening regarding the euro exchange rate recently, and which factors could influence the euro, looking to 2019 and 2020. So please find a summary below.
Sterling Hits 23-Week High Versus Euro, as Brexit Deal Signed
For Brits buying property in Slovenia, you may like to know that the pound to euro interbank exchange rate stands at 1.1640 this Tuesday 22nd October 2019. This is near its highest in 23 weeks, or since early May 2019. As a result, when you transfer money to Slovenia from the UK, you could get a higher euro total, compared to if you’d done so in the last 23 weeks.
In particular, since early August, when British sterling was as weak as 1.0646 versus the Eurozone’s common currency, it’s since strengthened by almost +10 cents, or by +9.33%. In turn, this could make it comparatively more affordable for you to buy the outstanding Slovenian home you’ve had your eye on.
UK sterling has strengthened versus the euro, in part because the UK’s labour market remains in fit form, according to the latest statistics. Although UK unemployment rose by +0.1% in the three months to August, to 3.9%, said the Office for National Statistics (ONS) recently, this is still close to a 44-year low. In addition, UK wages continue to rise faster than inflation, improving Britons’ living standards. This positive news lifts the UK’s GDP (Gross Domestic Product) growth, thereby contributing to bolster the value of the pound too.
Meanwhile, looking ahead, the pound to euro interbank exchange rate could be affected, because the UK and EU are set to negotiate their future trade deal. It’s hoped that there’ll be 0% tariffs, to make importing and exporting goods between the two sides more affordable, thereby benefiting both Great Britain’s and Europe’s economies, and general prosperity.
Dollar Gains Versus Euro in 2019, as US Economy Outpaces Eurozone’s
Similarly, if you’re an American buying property with Roni Nepremicnine this year or next, it may interest you to know that the US dollar to euro interbank exchange rate this Tuesday 22nd October 2019 stands at 0.8967. By comparison, back at the start of 2019, the so-called greenback was as weak as 0.8704 versus the common currency, an increase in value of +3.02%.
As a result, when you transfer funds from the United States to Slovenia, to buy your property Ljubljana or elsewhere, you might get a higher euro total than if you’d done so on January 1st 2019. This could help you, for example, to pay the legal fees or administrative costs of your real estate purchase.
The mighty buck has strengthened against the euro in 2019 to date, because America’s economy looks much healthier than the Eurozone’s. For example, the US Federal Reserve’s interest rate stands at 1.75%-2.00% at present, well above the European Central Bank’s 0.0%.
This tells us that the USA is strong enough to withstand higher borrowing costs, compared to Europe. However, on the bright side, lower Eurozone interest rates mean that your Slovenian mortgage repayments will be lower, than if the euro area’s economy were stronger. So you’ll have to pay back less to the bank, compared to if the ECB’s rates were at 1% or 2% for example.
So to sum up, the euro is comparatively weak versus the pound and US dollar at present. As a result, this may increase your euro total when you transfer money to Slovenia, to buy property with Roni Nepremicnine. This could be worth bearing in mind, for your real estate purchase this year or next.
Please note that the exchange rates within this article are interbank rates and are for indicative purposes only, and are not trading levels which Pure FX offer. For live trading levels contact one of our currency brokers on +44 (0) 1494 671800.
This article does not constitute advice to any person on any matter and it is not intended as a recommendation to trade. Pure FX makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to any loss arising from actions taken as a result of acting on this information.