US ($) Currency Thread 1 (closed - use thread 2)

Incapuppy

I have to change my Dubloons for sunscreen?

Could fool Mr Moo for a while though x

phatbear

Of course the real problem with that is giant squirells, from certain countries, are liable to get burnt noses so they may also be on the look out for un-protected quantities of sunscreen!!

all the best

the bear

phatbear

disney_cjd wrote: »

Bev

to give you a more helpful answer to those you have (and although they are of course right you can not know what the future holds you can protect the rate now.

I am not sure if you have heard of a forward contract? These were typically for big dollar transactions many years ago but now even sites like xetrade.com which I use allow you to do a forward for holiday spend amounts.

So how dies it work? Well you take todays rate, take a few points off so for a 1.999 rate you are looking at around 1.95, 19.6 maybe depending on the time of the forward and you book a date in teh futre you want the money. So Spetember (normally you do this for lionger periods of time like a year or so but whatever). You then pay a deposit (so you do not even need to pay for it all now) and then you have protected that amount at that rate and do not need to pay for it until nearer the time.

Remember this is a contract and you will have to pay for it in the future.

Its worthwhile if you are worried about it and it being the rate dropping.

I would keep an eye on it. It has hit 1.99 to day as people said (actually it hit 1.99 a few days ago, but getting over the 2 bucks seems to be a struggle.

So let me get this right you enter a contract which looses you 2 to 3% of todays value and in several months time you get the same rate, less the 2 to 3% that it was when you placed your order, a few questions spring to mind.

if the rate goes up do they increase the value of your purchase

and if not

why the hell would anyone want to do this to loose 2 or 3%, i understand that it offsets the outlay of money but is it really worth it considering the lost percentage points.

Hell it sounds like a licence to print money to me.

all the best

the bear

disney_cjd

phatbear wrote: »

So let me get this right you enter a contract which looses you 2 to 3% of todays value and in several months time you get the same rate, less the 2 to 3% that it was when you placed your order, a few questions spring to mind.

if the rate goes up do they increase the value of your purchase

and if not

why the hell would anyone want to do this to loose 2 or 3%, i understand that it offsets the outlay of money but is it really worth it considering the lost percentage points.

Hell it sounds like a licence to print money to me.

all the best

the bear

Not quite bear.

Rate is say 199

just done an example forward for 6 months so draw down in Jan 09 and got a g-teed rate of 1,955. So you are protecting the rate NOW for when you need it.

If the rate goes up, tough luck. But if the rate drops then you are fine as your rate was booked.

It offers security to those that want it.

Cheers

phatbear

Or put the money in a high interest account for the 6months and get 3% or 4% for the period then go out and buy your dollars, which if they increase will be a touch.

I just dont see what real purpose this service holds, unless you have some amazing insider info that the dollar is going to drop like a rock.

One other point you're not protecting the rate now as you claim, as the rate now is 1.99 however they are giving you 1.955

all the best

the bear

disney_cjd

phatbear wrote: »

Or put the money in a high interest account for the 6months and get 3% or 4% for the period then go out and buy your dollars, which if they increase will be a touch.

I just dont see what real purpose this service holds, unless you have some amazing insider info that the dollar is going to drop like a rock.

all the best

the bear

bear as you made it clear with your post replys earlier no one knows what the future holds. Say there is another drop - my crystal ball is broke so I don't know . Then if you need money for a trip or wedding abroad or buying a house or whatever this protects you from that risk.

You can bung the money away of course you can. You can do loads with it but the point is that if you are worried that dollar rate will fall, you do not have the funds now and you want a rate you can afford then a forward is a good idea.

It could be that for 500 quid spends on a two week trip to Disney World this is overkill as you might as well buy it now. But if you needed a bigger amount and the change in dollar rate would impact you then yes its a good idea and has been around for donkeys.

Cheers

Froggitt

Pay for your dollars now and get 2.00000 from http://www.crowncurrencyexchange.com/ for January delivery.....free delivery by Royal Mail Special.

disney_cjd

Froggitt wrote: »

Pay for your dollars now and get 2.00000 from http://www.crowncurrencyexchange.com/ for January delivery.....free delivery by Royal Mail Special.

Bingo. Thats the kiddie.

disney_cjd

There is a downside with Crown mind you.

They want the money up front so as Bear says you can keep it in a HI account and you make the same money.

The risk is that they not covered by any financial service so if they were to go out of business you would lose every penny of your money. I am aware the risk is slight but you won't find me dealing them, I use Xetrade where my money is safe for the sake of the odd pence in teh £.

hammy_the_hammer

visa rate reaches $2 to the £ today