Are you paid in a foreign currency?
An exchange expert can help you get more of your money
Ireland is the number one destination for US Foreign Direct Investment (FDI), according to a new report commissioned by the American Chamber of Commerce Ireland. The report reveals that the 700 US companies based in Ireland – including Google, Facebook, Apple and Microsoft – now employ 130,000 people. A proportion of these employees – particularly executives – are often paid all or part of their salary and bonuses in US dollars, creating a demand to exchange these funds into euros.
Ireland’s dynamic economic character has enabled it to keep ahead of the game in terms of remaining globally competitive. Even through the tough economic times in recent memory, the Irish government refused to shift on the 12.5% corporation tax rate – one of the lowest in the EU – that has helped the country become such a big draw for overseas companies. A decision fuelled by Ireland’s industrial policy being firmly focussed on attracting and retaining FDI. For example, Ireland has benefited from $277bn of US direct investment in the past two decades – gaining more from American firms than Brazil, Russia, India and China combined.
US investment in Ireland surged in the first nine months of 2014, increasing by 42pc to $37bn. And this rapid increase isn’t showing any signs of letting up, after both Apple and Microsoft recently announced proposals to develop new multi-million euro facilities in Galway and Dublin, respectively. The latter marking the 30th anniversary of their presence in Ireland.
Such large-scale investment has meant almost one in ten workers in the Irish economy are now employed in foreign-owned enterprises – the vast majority of which work for US companies. Consequently, it’s not uncommon for higher earners to be paid their salary and bonuses in US dollars. If you fall into this bracket of the workforce – or you’re paid in another foreign currency such as sterling – you would be forgiven for thinking that your high street bank is the obvious choice when it comes to exchanging these funds into euros.
However, there is an alternative. The Irish Times International Money Transfer Service, provided by exchange experts moneycorp, offers exchange rates that are typically 2-3% better than those offered by banks. This means you can receive more of your salary each month. For example, if you exchanged US$10,000 into euros, you could typically receive or generate €300 more with moneycorp – if you did this every month that would equate to €3,600 saved over the course of a year.
Furthermore, every Irish Times International Money Transfer Service client is assigned a personal account manager by moneycorp. They can help with every aspect of exchanging your currency, including offering guidance on the (often complicated and fast-paced) foreign exchange market. Such help is vital, because if you get your timing wrong, movements in exchange rates can have a negative impact on the amount of your salary or bonus you receive.
To see how much you can save, open a free account today. There is no obligation to exchange and transfer any money. Plus, moneycorp’s helpful customer service team will be able to answer any further questions you might have.