Foreign Currency

beancounter1968

Hi

A friend of my boss has 250,000 euros and has asked me if there are any gains to be made by converting to say dollars and then pounds as opposed to going to pounds direct - taking advantage of margins etc. Have to say that I have not got a clue. Anybody any thoughts on this?


Thanks


Phil

geo555

No.
Using xe.com
€250,000 = $392,830
€250,000 = £197,870
$392,830 = £197,867
Unless you change into $ and the value against the £ changes there will be no difference.

nomoneytoday

It won't make any difference. The rates are all trigged against each other.

Biggles

The rates shown for xe.com are mid-market rates. You never actually get your money changed at mid-market rates, you will pay two lots of foreign exchange fees (included in the exchange rate) if you actually change the money twice.

So €250,000 would get you around $376,000
$376,000 would get you around £184,000.
or
€250,000 would get you around £191,000.

I've allowed around 4% in fx fees, which I think is XE's rate. Your bank may charge you less, or it may charge you as much as double that.

jonesMUFCforever

If it is in cash they might not quote for that sort of amount.
Not a lot of branches of any bank are equipped to handle that sort of foreign cash.

So my advice is to ask the bank first before trying to bring the cash into the branch.