How to 'spend' leftover US Dollars

benjus

US Dollars are easy to change in almost any country. So you could just take them with you next time you travel anywhere, and you'd probably get a better rate than the Post Office.

cj2011

jackieblack wrote: »

Which favours anyone looking to change USD into GBP

It would if there was a way to get anywhere near 1.46 when trying to change USD into GBP, but they clearly want to buy them as cheap as possible so they can make a good profit when they sell them on.

Say I bought 200 USD and paid £137. Assuming I still have $200 and try to change them back at one of the mainstream exchange banks, I wouldn't get £137 back but more like £120. Would be great if I could get a bit closer to what I originally paid but for that to happen the buy-back rates would have to go up, i.e. the USD would have to go up against the GBP.

I didn't get a 'buy-back guarantee' as I needed to withdraw some cash from a cash point while I was over in the US, albeit more than I ended up needing for the trip.

jackieblack

cj2011 wrote: »

It would if there was a way to get anywhere near 1.46 when trying to change USD into GBP,

Yes, but the poster I quoted was complaining about the current low rate which is to the detriment of those looking to buy $, but does generally favour those looking to sell
For someone wanting to buy $ atm, $200 would cost them £137 at current rates but at $2/£1 would only cost them £100, so a higher rate would benefit them.

cj2011 wrote: »

but they clearly want to buy them as cheap as possible so they can make a good profit when they sell them on.

well yes, that's how they make a profit :huh: (foreign exchange is a profit making business, not a charity, after all) Buy cheap and sell for more is how all businesses make their profit.
Hence the suggestion that if you know anyone who might be travelling to the USA they might be prepared to buy from you at a mutually beneficial rate.

cj2011 wrote: »

Say I bought 200 USD and paid £137. Assuming I still have $200 and try to change them back at one of the mainstream exchange banks, I wouldn't get £137 back but more like £120. Would be great if I could get a bit closer to what I originally paid

cj2011 wrote: »

but for that to happen the buy-back rates would have to go up, i.e. the USD would have to go up against the GBP.

No, it would need to fall
At a buy-back rate of $2/£1 you would only get back £100 for your $200 that you paid £137 for. But a buy-back rate of $1/£1 you would get back £200

So, in order for you to get back what you paid, you want the rate to drop below $1.45

eDicky

The value of the dollar against the pound needs to rise in order for you to get more pounds for your dollars. It's the exchange rate figure, USD against GBP, that would fall.

cj2011

jackieblack wrote: »

No, it would need to fall
At a buy-back rate of $2/£1 you would only get back £100 for your $200 that you paid £137 for. But a buy-back rate of $1/£1 you would get back £200

I did say "i.e. the USD would have to go up against the GBP", which is still true. On xe.com they show that 1 USD is worth below 0.70 GBP. That figure does need to be as high as possible. If it's 0.50 I'll get less than if it goes up to 0.70. There are two ways to express a ratio.

cj2011

eDicky wrote: »

The value of the dollar against the pound needs to rise in order for you to get more pounds for your dollars. It's the exchange rate figure, USD against GBP, that would fall.

There are two ways to express a ratio. On xe.com they show that 1 USD is worth below 0.70 GBP. That figure does need to be as high as possible. If it's 0.50 I'll get less than if it goes up to 0.70.

eDicky

cj2011 wrote: »

There are two ways to express a ratio. On xe.com they show that 1 USD is worth below 0.70 GBP. That figure does need to be as high as possible. If it's 0.50 I'll get less than if it goes up to 0.70.

Quite true, but the rate is usually quoted in terms of the number of dollars to the pound, currently 1.45, not the inverse.