acisman
20th October 2004, 12:13 AM
guess there are many our there who are starting to get a little worried about the current exchange rate, which isn't look to good if you will be changing many thousands of pounds into dollars .
I have read that the forcast for early new year is that the dollar will fall against the pound and the rate will be nearer 3 dollars to the pound. This was comfirmed by HIFX and Westpac at the expo.
By far the most interesting fact I had confirmed at the expo is that the use of a forward contract with an foreign exchange provider like say HIFX can protect you to a degree.
It works like this. You register with an FX company and state what rate you would like to achieve and how much you would like to exchange. Let's say you want a rate of $2.80 when the current rate is $2.50. The company will then hold your application and when they can achieve $2.80 they notify you, at which time you pay 10% of the total to be transferred. The rate is now guaranteed, so even if the rate falls again, you know that you will get $2.80 at the time you have stated you wish to transfer large sums. This is very useful for budgetting purposes.
Of course there is a possibilty that $2.80 cannot be achieved, but you pay nothing until it is, or until the time comes to transfer the funds, when the company will tell you want is the best they can achieve. They will also keep in touch with you and offer advice above the liklihood of $2.80 be achievable, in the future and it may be that at $2.75 to can agree to accept that rate.
The only gamble is that if you look and get $2.80, the rate improves beyond that. But I guess that is the gamble we must all take. Of course another option is to split your potential transferable fund into 2 or 3 parts, asking for different rates and perhaps using different companies. There are no charges for using a forward contract.
I would add that I have no connections with any FX company and these comments are purely what I have read and had confirmed at the expo. I have certainly had some worries about exchange rates (tourist rate $2.48 today), but I rest a little easier now.
Dave
I have read that the forcast for early new year is that the dollar will fall against the pound and the rate will be nearer 3 dollars to the pound. This was comfirmed by HIFX and Westpac at the expo.
By far the most interesting fact I had confirmed at the expo is that the use of a forward contract with an foreign exchange provider like say HIFX can protect you to a degree.
It works like this. You register with an FX company and state what rate you would like to achieve and how much you would like to exchange. Let's say you want a rate of $2.80 when the current rate is $2.50. The company will then hold your application and when they can achieve $2.80 they notify you, at which time you pay 10% of the total to be transferred. The rate is now guaranteed, so even if the rate falls again, you know that you will get $2.80 at the time you have stated you wish to transfer large sums. This is very useful for budgetting purposes.
Of course there is a possibilty that $2.80 cannot be achieved, but you pay nothing until it is, or until the time comes to transfer the funds, when the company will tell you want is the best they can achieve. They will also keep in touch with you and offer advice above the liklihood of $2.80 be achievable, in the future and it may be that at $2.75 to can agree to accept that rate.
The only gamble is that if you look and get $2.80, the rate improves beyond that. But I guess that is the gamble we must all take. Of course another option is to split your potential transferable fund into 2 or 3 parts, asking for different rates and perhaps using different companies. There are no charges for using a forward contract.
I would add that I have no connections with any FX company and these comments are purely what I have read and had confirmed at the expo. I have certainly had some worries about exchange rates (tourist rate $2.48 today), but I rest a little easier now.
Dave