Brexit and Currency Possibilities
Options
spudgun27
Posts: 7 Forumite
Hi all
Hoping someone might be able to help us out.
We have a reasonably large amount of money in a Euro account at present from trading in the EU (so we receive funds in Euros).
Our business is UK based, and we import goods and generally pay in USD for the goods.
We don't generally pay for anything in Euros.
With the impending brexit deadline looming, we're trying to think what's best to do with the money in Euros.
If it were in USD it would get spent on purchasing more stock.
If it were changed to GBP, we'd then likely transfer it USD at the time that we need to pay a supplier in USD.
Looking to hear what other people would do in this situation? One thought was to split the money, so 1/3 is in Euro, 1/3 is in GBP and 1/3 is in USD.
That way, if one currency drops against another (say the £ against the $) then at least our $ rises in value, which cancels out the loss?
Any thoughts?
Many thanks!
Hoping someone might be able to help us out.
We have a reasonably large amount of money in a Euro account at present from trading in the EU (so we receive funds in Euros).
Our business is UK based, and we import goods and generally pay in USD for the goods.
We don't generally pay for anything in Euros.
With the impending brexit deadline looming, we're trying to think what's best to do with the money in Euros.
If it were in USD it would get spent on purchasing more stock.
If it were changed to GBP, we'd then likely transfer it USD at the time that we need to pay a supplier in USD.
Looking to hear what other people would do in this situation? One thought was to split the money, so 1/3 is in Euro, 1/3 is in GBP and 1/3 is in USD.
That way, if one currency drops against another (say the £ against the $) then at least our $ rises in value, which cancels out the loss?
Any thoughts?
Many thanks!
0
Comments
-
Surely if you transfer to GBP, and then to USD you are paying two commissions on the transactions though?
If you buy in USD why not just transfer the EUR to USD? It is unlikely (not impossible) that any bounce in the Dollar rate would offset the losses from transfer fees.0 -
are you a company ?
if yes be very careful with currency speculating as you cannot do that for gain unless you are an investment / currency trading company0 -
are you a company ?
if yes be very careful with currency speculating as you cannot do that for gain unless you are an investment / currency trading company
Yes, we're a company. I didn't know that, so thanks! Seems a bit crazy that you can't try to get the most out of our money but I'm not going to argue with the rules.bingo_bango wrote: »Surely if you transfer to GBP, and then to USD you are paying two commissions on the transactions though?
If you buy in USD why not just transfer the EUR to USD? It is unlikely (not impossible) that any bounce in the Dollar rate would offset the losses from transfer fees.
I think that makes the most sense too. We're going to spend it anyway in $ so little point with 2 transactions and the associated costs. I guess the only downside to transferring the lot is there is no potential to gain by making that exchange at a time where the rates are preferable, but the flip side is that there is no risk of it going the other way either.
Thanks for your responses!0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards