Receiving Danish Krone

x_gambit_x

Looking for some advice, a friend works offshore, and is currently paid in Sterling. The company is based out of Denmark, and he will be paid in Danish Krone as of next month. What is the best option for receiving his salary?

I've looked into having a foreign exchange bank account, and HSBC seems to be the only bank offering this to UK customers, and while they offer an account with no transaction fees, the problem is the exchange rate will constantly fluctuate. Is there any way around this? RBS mentioned he could request documentation from the company he works for to give him a better exchange rate. They currently take an average over 5 years to pay him in Sterling. But the guy in the bank couldn't remember the name of the letter he'd need for that (if there actually is one). Or any way he can request some kind of compensation for the potential loss of money he'll potentially end up with during conversion.

Thanks!

eskbanker

x_gambit_x wrote: »

I've looked into having a foreign exchange bank account, and HSBC seems to be the only bank offering this to UK customers, and while they offer an account with no transaction fees, the problem is the exchange rate will constantly fluctuate. Is there any way around this? RBS mentioned he could request documentation from the company he works for to give him a better exchange rate. They currently take an average over 5 years to pay him in Sterling. But the guy in the bank couldn't remember the name of the letter he'd need for that (if there actually is one). Or any way he can request some kind of compensation for the potential loss of money he'll potentially end up with during conversion.

Surely if they start paying him in DKK then they won't be involved in any conversion and will presumably wash their hands of any exchange rate issues?

While it's possible that the exchange rate may work against him, it could equally work for him (especially when the DKK buys more GBP now than at any point over the past five years so he should be ahead on day one), so I wouldn't have thought that there'd be any grounds for compensation, although I can see the argument that any actual transaction costs become his rather than his employers.

It may also be worth looking at currency brokers rather than relying on bank rates, see http://www.moneysavingexpert.com/banking/foreign-currency-exchange

x_gambit_x

Yes, I think that's the purpose of changing to pay in Krone. To cut out the fees they incur. The bank asked about his job etc and said they should cover any bank fees he will rack up to convert to his home currency, but whether they agree to that is another thing.

I'll have another look at currency brokers, though at first look it seems like a lot of faffing about to save a few quid. May be worth a phone call though to weigh it all up. Thanks for the advice eskbanker.