The following article is for people who are interested in loans for people working abroad. By familiarizing yourself with the following issues, you can more consciously choose a currency loan.
What does the exchange rates depend on?
Holders of zloty loans must take into account changes in the rates set by the NBP. The situation gets complicated when we take out a foreign currency loan. Let’s analyze what the currency loan installment depends on. It can both increase and decrease.
The most important currencies for Poles are: euro, dollar, franc and pound. The year 2017 was recorded in exchange rates as special, because many of the most significant currencies fell by as much as several dozen groszy.
Currently, people who earn in the Polish currency have no dilemma about choosing the currency in which they plan to take out a loan. Pursuant to Recommendation S number 6, a borrower in Poland may take out a loan only in the currency in which he earns. However, it is still possible to convert the loan.
The economic factors also include: supply of foreign currencies on the domestic market and demand for foreign currencies.
This is a very important question that should interest every person who intends to get a loan in currency. Regardless of whether you are planning a short-term or long-term loan, you should know where the currency market changes are coming from. Of course, very often forecasting exchange rates in the short term is like playing roulette. The currency market is very dynamic – in extreme cases exchange rates change even several times in one second.
What influences exchange rates?
Exchange rates are primarily influenced by macroeconomic data, i.e. information that comes out of the market from the perspective of various economic publications, such as inflation or unemployment, and many other economic information. So this is information that shows what the situation is in a given country. Macro data build long-term market trends, these are factors that affect the exchange rate in the long term. Another thing that affects the currency market is the so-called market mood. That is what investors think at the moment.
Exchange rates are a process that depends on an incredibly large number of factors. Another rule that affects the price of a given currency is very simple – the more people buy a given currency, the higher the price it can reach. The factors also include the current political stability in a given country. If there is an unstable political situation in a given country, it scares off investors to invest capital in a given country.
With this topic, it’s worth remembering that even the greatest specialists are wrong, and their predictions are not always true.
Long repayment periods of credit obligations, especially mortgage liabilities, mean that their incurrence should be carefully considered.