Forex Digest

Lets say for example, I have money in an American bank (US dollars) and would like to convert that money into British Pounds, what company or third party would allow me to convert the money into that desired currency?

PS: Not trading on the Foreign Exchange market, I would just like to convert the currency into a different denomination.

Thanks

Most banks will do that for you, at the official exchange rate.

2009-05-27 12:14:17 by zanzanevox

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"Under currency exchange restrictions introduced by Chavez, the bolivar was fixed at an official rate of 2,150 per dollar and trading outside the Foreign Exchange Administration Commission is banned.

Chavez plans to cut three zeros off the currency on Jan. 1. The currency in the so-called parallel market, in which companies and individuals obtain dollars illegally, is traded at around 4,820 bolivars per dollar"

Do we have greater buying power or less?

http://www.bloomberg.com/apps/news?pid=2 0601086&sid=a.cr1RsqYWeU

The short answer is that we have greater purchasing power with a USD than the government of Venezuela would like to acknowledge. It also shows the strength of free markets.

Money is carefully controlled in Venezuela. The official exchange rate does not reflect the value that Venezuelans put on USD (or Euros). This means the average Venezuelan cannot buy as many dollars as they want at 2,150 bolivars. There simply are not enough USD available. In many cases, there is no official way to convert back to USD and certainly not at the official rate.

When an American goes to Venezuela, if you exchange at an official location you will only get 2,150 bolivars to the dollar. This also typically includes certain establishments - hotels etc.. However, if you ask at a restaurant and other places what the rate is for USD they will cite something else - perhaps 4500 or 4800 or something like that. Perhaps they lowball you and say 4000. Some places, also will not offer that rate and just cite the official exchange rate. This is because when Venezuelans travel abroad, I don't think it is very easy for them to exchange their Bolivars. I've not actually checked this. As they noted, it is banned. However, there is always lots of black market activity in carefully controlled economies. Venezuelans also like USD and Euro because they provide good insurance. Back in 2003, the official exchange rate was 1600, but the black market rate went from 2000 to 2600 or so. You can see, it would have been really good to convert everything you had to USD.

Also if you are going to Venezuela, it is generally very ill-advised to use cabs on the street. Get a car and driver or perhaps use hotel "cabs". Car and drivers can be very cheap. I hired a car there for $60 us to drive me out 3 hours out of town to a location. The driver took us both ways, waited while we looked around the area and did a jungle tour, and paid for all the gas that was needed (which is very inexpensive in Venezuela).

The second part is that Chavez is going to strengthen the currency by 1000 by simply declaring that 1000 old bolivars is now just 1 new bolivar. This is largely cosmetic. It is not clear if everyone will have to hand in old bolivars or what. USD would then be worth 4.85 new bolivars as opposed to 4850 old bolivars. I would try to avoid holding bolivars during the turnover time. The official exchange rate would then move from 2,150 to 2.15.

2007-09-12 11:52:11 by cher I

Guys, I am very interested in entering Foreign exchange trading. I believe there is big time money in that. I am very keen to learn how FOREX trading is done and stuff. I believe there are companies which are selling software’s which act as GUIDES and tell you when to buy or sell a currency. I saw ads of such software producing companies on TV and was much impressed. thye were also giving free demos in near by cities, but I missed out...) Could you pls let me know how I can find a company which sells this kind of software along with other training stuff????

LOL, you don't need software, you need to spend a little of your precious time doing your own research on investopedia and other sites learning about that market and how it works.

Most of those software presentations are scams - they use indicators that you can easily get from any basic trade station.

Dude, there are no shortcuts to the marketplace, if there were then there would be no losers and only winners - an impossibility.

After doing a little research on your own if you have questions, my door is open most of the time. I've been trading FX for a couple of yrs.

2006-10-23 10:34:26 by Wiickid

Hey everyone, I'm currently taking Macroeconomics and I absolutely love it, but now that we have moved into exchange rates I am having an extremely difficult time. The book does not expand upon it very well, and has almost no examples. Here are seven questions in the books mini quiz at the end of the chapter, I would really appreciate it if anyone could give explanations as to each answer so I can really understand the concept for future references to Exchange Rates. Thank you =]
-----------------------------------
1.Suppose that McDonalds Imports 78,000 lbs of meat from Spain. The company would pay for the meat with

U.S. dollars.
Euros.
Spanish currency.
Gold or silver.
General African currency.


2.Which of the following is true in relation to the international value of a country with floating exchange rates?

It is determined by countries investors in the foreign exchange market.
It is determined by foreign investors in the foreign exchange market.
It is determined by foreign and countries investors in the foreign exchange market.
It is determined by the federal government.
It is determined by the foreign governments in the foreign exchange market.


3.If actions of the Mexican government caused a shortage of domestic currency, then the Mexican government fixed the exchange rate

above the market equilibrium and dollars per peso will tend to rise.
below the market equilibrium and dollars per peso will tend to rise.
below the market equilibrium and dollars per peso will tend to fall.
above the market equilibrium and dollars per peso will tend to fall.
below the market equilibrium and peso per dollars will tend to rise.


4.Suppose the CountryA and CountryB sign a free trade agreement. If real interest rates increase in the CountryA but not in CountryB, which of the following will be true of CountryB capital flow, exports, and the value of the CountryB real? (Capital Flow / Exports / Value of Real)

Inflow / Increase / Depreciate.
Inflow / Decrease / Appreciate.
Outflow / Increase / Appreciate.
Outflow / Decrease / Appreciate.
Outflow / Increase / Depreciate.


5.Suppose Americans began purchasing real assets in Europe. How would this impact the foreign exchange market for the dollar and the euro price of the dollar? (Supply of dollar /Euro Price of dollar)

Increase / Increase
Increase / Decrease
Decrease / Increase
Decrease / Decrease
Decrease / Not Change


6.The Euro is currently trading for 6 pesos per euro. If the exchange rate adjusts to 9 pesos per euro then

the euro has depreciated.
the euro has appreciated.
the peso has appreciated.
both the peso and the euro have appreciated.
both the peso and the euro have depreciated.


7.Suppose GDP increases more in India than it does in Mexico. What is the short-run impact of this change in GDP on Mexican net exports, the value of the peso, and the value of the Indian rupee? (Net Exports / Mexican peso/ Indian rupee)

Increase / Appreciate / Depreciate
Decrease / Appreciate / Depreciate
Increase / Depreciate / Appreciate
Decrease / Depreciate / Appreciate
Increase / Depreciate / Depreciate

1. i think spain uses euros, so euros or spanish currency.

2. floating exchange rates means that the government is Not involved in curency markets. So, domestic and foreign investors determine the exchange rate under floating.

3. If the mexican government reduces the amount of domestic currency (pesos), the value of pesos will rise--as the value of all goods rises as their quantity becomes smaller. This means (d) it will rise above its market equilibrium level and dollars will fall relative to pesos.

4. outflow/increase/depreciate. investors move their money to the country with higher interest rate--inflow to A outflow from B. As a result investors demand A's currency--in order to invest there--and A's currency appreciates relative to B (or, put another way, B's currencies depreciates relative to A's). Finally, B witnesses an increase in exports as its goods become less expensive relative to A.

5. Increase/Decrease.

6. euro appreciates/the peso has depreciated.

7. net exports of mexico increases. I am not sure about what happens to exchange rates.

2009-09-12 10:59:31 by SupaStudy

XE Trade (www.xe.com) appears to be a Canadian company offering highly competitive exchange rates for making foreign currency transactions. I am considering using their service to transfer money from the UK (Pounds) to South Africa (Rands) I would like comments from anyone who has used this (or similar service)

Have you tried contacting them?

2006-06-22 07:34:13 by Karl