You may be planning on buying a ski home in 2022, which is an exciting prospect, to say the least! However, you’ll want to ensure that your purchasing power isn’t reduced by potentially thousands due to fluctuations in the currency markets.
Watch out for these key events in 2022 that could impact currencies and find out how you can protect your money.
Bank of England meetings
The pound has strengthened recently due to expectations of interest rate hikes in 2022. After unexpectedly raising the rate in December and data showing that inflation in the UK is at a 30-year high, the Bank of England could raise the interest rate again in February. This could be beneficial for the pound, but equally, if officials decide to keep rates the same, sterling could weaken.
The next Bank of England meeting on February 3 will be followed by meetings on 17 March, 5 May, 16 June, 4 August, 15 September, 3 November and 15 December.
French Presidential election
The first round of the French Presidential election will take place on April 10. The current President, Emmanuel Macron, is the favourite so far and has been ahead in the polls for months. However, these elections can be famously volatile. If any unexpected events occur, the euro could be impacted.
Far-right politicians Marine Le Pen and Eric Zemmour, as well as conservative Valérie Pécresse, could do well.
Political unrest in the UK
The pound has, so far, been mostly unaffected by the events taking place in Downing Street. However, a vote of no-confidence in the Prime Minister or any other large changes could impact sterling. In the past, the pound has fallen during times of political instability, so we could see this happen again.
UK local elections
Local elections in the UK are due to take place on May 5. Usually, these don’t have a huge bearing on the pound’s movements. However, the political unrest that is occurring in Downing Street at the moment may mean that these elections are more eventful than usual. Any unexpected outcomes may impact sterling.
US Secretary of State Antony Blinken and Russian Foreign Minister Sergei Lavrov met for talks recently amid fears that Russia could be about to invade Ukraine. Moscow currently has troops near the Ukraine border but has denied any plans to invade. If tensions between the two nations continue to rise, this could have an impact on the dollar and other currencies.
How to protect your money
As an international property buyer, the safest way to protect your money is by using a forward contract, which locks in the same exchange rate for up to a year. If you lock this in soon, you will have the peace of mind that your money will be unaffected, whatever happens. Find out more here.
For more information about purchasing your perfect ski home abroad, don’t miss your free Buying Guides, covering the purchase process itself, the legalities, finances and more.