alfasud14
4th October 2007, 11:38 PM
Hi all,
I have accepted an internal promotion to take up a role in Auckland on a 1-yr contract. On reflection, the total package is generous and among other things, it allows for Currency Fluctuation. This allows me to take the entire salary in NZ dollars or subject 10-60% of the base salary to be stabilized in USD or EUR. The stabilised portion is converted back into NZ dollars using the company's 100 day average exchange rates monthly. For example, if on the start of the contract 1 USD=1.328NZD and monthly the NZD drops say 1 USD= 1.328++NZD(eg 1.4NZD), it is in effect more pay; the reverse is also true, if the NZD strengthens against the USD or the EUR (whichever I choose), then I get less monthly.
Given, the NZD has gotten very strong lately (and it will hurt the NZ exports), given the USD has been too weak for too long, given whenever there is a financial chill anywhere in the world (eg the one that hit 3-4 weeks ago), everyone props up the Yen, EUR, UKPounds and USD and given there might be an election soon, do you reckon this will be a good move? That is, hedging a portion of my compensation against the USD?
Any guys familiar with this and/or currency matters to shed more light on this please?
Thanks!
I have accepted an internal promotion to take up a role in Auckland on a 1-yr contract. On reflection, the total package is generous and among other things, it allows for Currency Fluctuation. This allows me to take the entire salary in NZ dollars or subject 10-60% of the base salary to be stabilized in USD or EUR. The stabilised portion is converted back into NZ dollars using the company's 100 day average exchange rates monthly. For example, if on the start of the contract 1 USD=1.328NZD and monthly the NZD drops say 1 USD= 1.328++NZD(eg 1.4NZD), it is in effect more pay; the reverse is also true, if the NZD strengthens against the USD or the EUR (whichever I choose), then I get less monthly.
Given, the NZD has gotten very strong lately (and it will hurt the NZ exports), given the USD has been too weak for too long, given whenever there is a financial chill anywhere in the world (eg the one that hit 3-4 weeks ago), everyone props up the Yen, EUR, UKPounds and USD and given there might be an election soon, do you reckon this will be a good move? That is, hedging a portion of my compensation against the USD?
Any guys familiar with this and/or currency matters to shed more light on this please?
Thanks!