Questions tagged [foreign-currency]

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1answer
73 views

Why is the forex pair Japanese yen and USD is displayed as USD/JPY but not JPY/USD

Assume the trader's assets are in USD. The first currency is base, which is bought after selling the quote. Like EUR/USD. If my understanding is correct, wouldn't that be selling my USD in order to ...
3
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2answers
247 views

Is there no tax free way to shelter your savings from depreciation due to inflation like converting to any other unaffected foreign currency?

As I understand it, currency appreciation is treated as taxable income. However, if the currency you've converted to or any other currency you convert to isn't really appreciating at all and instead ...
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0answers
48 views

At what balance should I transfer from US to EU?

I'm a US citizen who has moved to the EU recently. I now have a full proper bank account in my country of residence, while retaining my US bank account. I have transferred a large amount of my wealth ...
29
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3answers
6k views

Are currency terms like USD, EUR, CNY used in all languages?

Currency codes like USD, EUR and CNY are well known in English. In accountancy documentation prepared in non-English languages, are these same terms used for foreign currency or are they translated? ...
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0answers
34 views

Are foreign currency bank accounts in Brunei protected by deposit insurance?

All retail banks in Brunei are members of the Brunei Darussalam Deposit Protection Corporation (BDPC). The deposit insurance scheme protects up to 50,000 BND per person per bank in the event of a bank ...
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1answer
98 views

What happens with funds whose underlying is in a different currency if there is hyper-inflation?

Let's suppose that a british investor invests in a mutual fund whose underlying is in american dollars, but which is bought in pounds sterling. This means that the fund's managers convert the pounds ...
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1answer
65 views

What is the relation between inflation on a country and the exchange rate of its currency?

In the interval between 2010 and 2011, American inflation was 3.2% and Chinese inflation was 5.55%. During this year, the pair CNY/USD went from 6.2524 to 6.5758. If an investor would have invested 1,...
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1answer
69 views

Loss for currency exchange, is this taxable/deducible?

Hej, I live in Sweden since 2019. I had money in a US Bank account (earned in 2018 and 2019) that was sitting there without being invested. I've therefore decided to transfer it to SEK and start ...
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0answers
55 views

Portfolio diversification into different currencies

Does it make sense to diversify the portfolio into different currencies if they are in any case correlated with each other or is it not so?
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4answers
2k views

What are the advantages/disadvantages of investing in foreign currency?

I am learning about brokerage accounts and how investors diversify their portfolios within their brokerage or other investment accounts. One of the things I have noticed, especially in the U.S., is ...
1
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1answer
131 views

What does "foreign currency" mean in this context?

I'm looking to sign up for the Chase Freedom Unlimited credit card as I'm about to make a >$500 purchase and would like to receive the $200 bonus offer. This purchase would be made on a foreign ...
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0answers
58 views

Can I really exchange money in Forex?

Suppose I've got Euros. Suppose I need dollars. How can I transfer/exchange my euros into dollars in Forex? I know I can do it in any currency exchange stall. But Forex currency rates look more ...
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0answers
34 views

Billing my clients in different currencies, does it matter?

I have a Canadian LLC (with a Canadian dollars bank account) and recently got my first offshore client from Singapore. In our signed contract my rate is in Canadian dollars, and then my client asked ...
-1
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1answer
62 views

In case of an unsecured loan creation in a non-domestic currency where will the loan payment money come from? [closed]

In case of an unsecured loan creation in a non-domestic currency where will the loan payment money come from? I have learned that it is possible for the money to be created and exist outside of their ...
0
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0answers
18 views

International investing and currency fluctuations [duplicate]

Lets suppose a British investor has some participations (say, for a value of £10000) in a Britih (not hedged) fund or ETF whose underlying assets are in US dollars, but that is denominated in pounds ...
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1answer
564 views

Historical telegraphic transfer buying rate for a currency to INR

The rate of exchange for conversion into rupees of income expressed earned in foreign currency should be the "telegraphic transfer buying rate of such currency as on the specified date" as per the IT ...
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1answer
63 views

When are foreign exchange market hours?

This is probably a daft question. I am been googling for answers but still can't be sure about the answers I got from google. I am trying to send money from Malaysia to the UK through Revolut. But I ...
1
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1answer
67 views

In foreign mutual funds, what is the conversion fee?

I have found a mutual fund whose denominated currency is Euros but its underlying asset's currency is US Dollars (it tracks the S&P 500). The fund can be found here. While inspecting its fees, I ...
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2answers
90 views

Invest in an US ETF or fund being a UK citizen

Is it possible to invest in a US ETF or fund being a UK citizen, without having any sort of bank or brokerage account based in the USA? I'm not talking about these ETFs / funds that hold US assets ...
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0answers
41 views

Converting some of the rainy day fund to EUR

I live in a country where EUR is accepted at most shops, but it is not the official currency. I am wondering if it would make sense to convert a portion of my rainy day fund to EUR, to be somewhat ...
0
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1answer
87 views

How should near-instant forex transactions be handled for taxes?

This is what I mean by a "near-instant" forex transaction. I deposit GBP in my broker account with the goal of buying a US-based company stock, but, when I make the trade, the broker automatically ...
1
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1answer
198 views

FX options for retail trader

I would like to trade options on the FX market, say EURUSD and GBPUSD. I have seen that there are options on the CME that have FX futures as underlying and also some options on spot on the ...
3
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2answers
293 views

Is it better to invest in US than to invest in India considering inflation rate and devaluation of INR

I am a US resident with Indian nationality. To calculate annual real gain on my investment in mutual funds in India, I am following below mentioned formula: Annual Real Gain = Annualized Return - ...
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2answers
76 views

Small Business foreign exchange

I run a small Australian business that has the requirement to pay a relatively small but not insignificant (say USD10k-20k equivalent annually) amount of invoices in foreign currencies (EUR and USD). ...
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2answers
127 views

Why do currency rates have an effect on the value of goods? [closed]

It is common to hear explanation like "Yuan has lost value, this helps Chinese exporters". Why does currency exchange rate have any effect at all on the price of goods? Let's say I own a widget ...
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0answers
81 views

Canadian nomad, USD earnings - how to invest/preserve currency

I'm a Canadian tax resident who moves around a lot. Exchanging currency stresses me out so much if I think about it that I basically have just decided to accept volatility. I work online, and am paid ...
1
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1answer
60 views

Currency option case

I am a bit lost with understanding the naming used for holding positions in the currency options and their payoffs. If I want to buy the European option with an amount of x USD (EUR put/ USD call), ...
49
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5answers
12k views

Why do money exchangers give different rates to different bills?

I was traveling to India recently and was buying a few hundred US dollars on my way as the money exchanges didn't have any Indian rupees with them. At the exchange counter, they didn't have 100 dollar ...
1
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1answer
379 views

How the uniformity in exchange rates are achieved?

Suppose it takes 1200 euros to visit Suriname. and I am from India. Now first i converted 1200 euros to inr which came as 93689 rupees . Then just out of curiosity, I tried converting 1200 euros to ...
3
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1answer
377 views

What is the degree of “nickel rounding” that occurs with Swiss francs?

I am trying to implement currency handling for Swiss francs (CHF). In Canada, we have removed our penny from our currency circulation, but digitally the penny amount ($0.01) still exists (bank ...
3
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1answer
154 views

Buying foreign currency as a long term investment [closed]

I live in a country with an uncertain, collapsing economy. The exchange rate compared to USD and EUR@ is sky rocketing that effectively wiped off 20% of people's savings in just 8 months! See USD-LKR. ...
0
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2answers
101 views

AUDUSD vs. Apple's bad results in China - WHY is this positive correlation (it has nothing to do with AUD!)?

I would appreciate if some trading fundamental analysis expert could please explain me this. Recently I lost basically all my entire life savings, everything i worked for, for over 3 years, waking up ...
6
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1answer
333 views

Who Is responsible when a currency transaction is mistakenly converted by an intermediary bank?

My client transferred USD from the US to my USD currency account in Ireland. Their intermediary bank converted the funds to Euros so it hit my USD account in Euro, was converted back to USD by my bank ...
3
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1answer
268 views

How to offset currency exchange losses?

Situation forces me to repatriate foreign revenue valued in Euro to USA, which is not ideal at this moment because the Euro is at a low. To counter this, would it make sense to buy Euro in USA at the ...
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2answers
212 views

How should I think about salaries in New Zealand relative to the United States? [duplicate]

Let's imagine I live in the United States and make about 100,000 USD. If I move to New Zealand for a few years, I expect to make about the same, but denominated in New Zealand dollars. That is, make ...
1
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1answer
61 views

Posting invoice in different currency

I've got all my transactions organized in CAD. Now I've got a new customer that'll pay me in USD. I can open USD bank accounts to handle this, that's not a problem but in GNUcash I created a new ...
2
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1answer
2k views

What costs do banks incur on processing credit card refunds in foreign currency?

When a credit card transaction is in currency different to the one of the card, it is pretty normal for banks to charge a 1-3% fee associated with the currency conversion. Some banks do this by using ...
0
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2answers
136 views

Futures and forward contracts are very different from each other

** Assume two traders enter into a one-year (March 2019) Euro futures contract at a futures price of 1.1220 physically delivered. Regardless of the spot price on the settlement date, if the spot ...
0
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2answers
127 views

Hedging against currency risk

Is there a hedging method against currency risk without lowering returns ? Classic hedging methods like forwards, futures options, all have a cost and don’t remove risk “for free”.
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1answer
86 views

Forex instead of futures as a hedge

Why don’t companies use forex trading as a hedge for their foreign exchange risk instead of futures ? Forex is much more liquid than futures, easier to have access to all your positions anytime, ...
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2answers
241 views

Determining Futures price on the delivery date

When traders don’t get out of their fx futures positions before they expire, on the delivery date, is the amount exchanged the specified price on the contract when it was signed or the spot price ...
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2answers
95 views

Investing in currency, long term

Given the low expectation that currencies go bankrupt (at least, main currencies like yen or pound): Is it a viable strategy to just buy currency (the currency proper not some future), and wait until ...
0
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1answer
121 views

How to sell some euros and buy rubles?

I would like to sell some euros in an online exchange and buy rubles. My question is, once I buy rubles how do I withdraw them in my Russian account? Also, how to deposit euros? I know about some ...
3
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2answers
5k views

Buy stock in Canadian dollars or US?

I am located in Canada. I've been buying US stocks(listed on a us stock exchange), my question is, should I buy them in Canadian dollars or convert to US and buy? I have tried both, my broker ...
15
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4answers
2k views

Are there alternatives to double currency account to manage payments in different currencies?

I get paid in US dollars (USD), but I live in Hungary, where fiorint (HUF) is used. Right now my bank account has two accounts, one in USD, one in HUF. I receive the money on the USD account and I ...
2
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0answers
203 views

Difference between buying a NYSE-listed company in USD or in EUR

Let's say I'm a European living in Germany and a company is listed only on the NYSE in USD. On my trading platform I can buy shares of this company either on the NYSE in USD or on Xetra in EUR. When ...
9
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8answers
12k views

Losing Money with Norbert's Gambit

In attempt to avoid the usual 1.5-2% exchange fees levied by brokers, I perform Norbert's gambit: I purchase DLR.TO in CAD (Canadian dollars) from TSX, journal it over to DLR.U.TO, and then sell the ...
2
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1answer
83 views

How to detect currency rates changes?

I know the factors (like supply and demand) but how the economics know the value of a currency in a certain time exactly? They couldn't possibly take all the factors in the universe instantly into ...
1
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1answer
72 views

Stock not available at home country nor at their local market - where should I buy it

I would like to buy a stock of a company, unfortunately I don't have access to the stock in my local stock exchange nor do I have access to the stock exchange of the country of the company. But I ...
1
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1answer
99 views

What and which side determine the change in exchange rate

Usually I withdraw money from my account in my home country's currency, to where I live, so the conversion rate is applied and I get the money in the currency of the country I live in. I am very ...