96

When dealing with currency exchanges, it's important to remember that only the local currency is "money", all the other currencies are just "things". This is the reason behind the "buying"/"selling" terminology you often see. When you change foreign currency into local currency - in the view of the currency exchange - they are buying your strange pieces of ...


41

Because it is physical money. They need to handle it. And they may simply not be able to as easily and as efficiently offload 5 USD bills compared to 100 USD bills. Result is a different pricing structure.


8

It sounds like the money exchanger is making up a reason why you're not getting the advertised rate, independently of the notes that you actually have on you. So they're basically scamming you. That's not exactly unheard of, especially on airport locations. It helps to shop beforehand to find the best rates. Some locations even offer to lock in the rate, ...


5

If it were different, then this would produce something called "arbitrage". When arbitrage appears, it generally disappears rather quickly as people take advantage of it. For instance, suppose that Eur -> USD -> Inr gave a better rate than Eur -> Inr. Then what would happen is that people would use Eur to buy USD, use it to buy Inr, then use the Inr to buy ...


4

Your title is: "How to offset currency exchange losses?" However your course of action could alternately make the following a more accurate title: "How to take on additional currency exposure / risk?" Remember - you are thinking of the EUR being at a 'low', but that's relative to some historical period. If EUR reaches parity with the USD, then you might ...


3

My expenses wouldn't stay the same either. Maybe the liretto isn't worth as much now, but an hour of work is still an hour of work. If I tried to pay my workers the same nominal amount, even though it's worth half as much now, they would be outraged. They read the news too, after all. Your workers have a contract stating that they will paid X lirettos an ...


3

The client should lead on this, because they never paid their bill. They transferred you a number of Euros that was not sufficient to cover the bill (because their bank converted with some spread). The source bank should end up paying for this mistake if they were told to transfer USD, but your client should do the legwork as they were responsible for ...


3

This all depends on your risk tolerance. Preservation of capital wise just buying a basket of the stable global currencies and sitting on it will preserve capital well but lose to inflation in the medium/long term. Property is very hard to call and hedge as its a static, high deprecation asset that unless you are able to buy properties in numerous locations ...


2

The drop in AAPL on Jan 3, 2019, was enough to affect several major US stock indices. The falling stock market led many investors to move into bonds, increasing US bond prices and reducing US bond yields. Falling US bond yields tends to drive international investors away from investing in US bonds, leading to a falling US dollar. On Jan 4, the overall US ...


2

I can't say specifically for India, but in many countries (I have personal experience of this in Uganda), the official exchange rate for small bills is intentionally set lower, to discourage the use of US dollars in favour of the local currency.


2

Cash is king. And the king of cash is a 100 dollar bill minted by the US Federal Reserve, which is quite possibly the hardest currency note in the world to counterfeit. It's not different rates for different denominations. It's more like: there's 100 dollar bills and there's not 100 dollar bills.


1

Partially this depends on how you setup your business and your accounting. You probably run your local business in liretto. How currency fluctuations affect you and who carries the risk/reward when it happens, depends on how you sell your product. There are three major scenarios You sell to an exporter than pays you in liretto There is no difference to your ...


1

FOREX Options only trade on one pair. For EUR/USD u can only make options EUR/USD. You can exercise a long call at any given price at maturity. It only makes sense, however, to exercise when you would make money.


1

No. The only reason to do it in the store is that it's impossible to just cut other coins into pieces. Also over many transactions you'll get very close to the actual amount with half of them rounded down and half rounded up. With bank accounts there's simply no need (and no legal way) to do it. The bank can't suddenly decide to steal pennies from you. ...


1

I find in general, Norbert's gambit makes financial sense for everything above about 3K assuming the two $10 trade fees one pays. TD now allows you to journal shares over without ever talking to a broker using the transfer shares feature. Depending on how deep your brokerage/bank digs, you save between 2k and 3K per 100k on both in and out transactions. ...


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