How do I thrive in my business where exchange rate is unstable?
If your business is dependent on exchange rates, you should look for a hedging strategy. In some countries, they keep their bank account and contracts in a stable foreign currency.As an example, let’s say you expect to receive a payment in Euros in 3 months and your costs are in USD. You can go on the forex and buy an option to buy USD at a fixed price in Euro. If the Euro goes down in the 3 months, you can exercise the option. If the Euro stay the same or goes up, you don’t use the option and you lose the price you paid. It is like an insurance.Hedging strategies can be complex and will vary depending on your specific situation. If you deal with large amounts and multiple currencies, you should find a financial specialist.For a small business with contracts in a single foreign currency, like a Canadian business with customers in the USA, you can get familiar with options and futures and implement a basic strategy that reduce volatility without too much effort. Just make sure to focus on the fundamentals of these contracts and not about trading them.
What's the most reliable place online to get the exchange rates and check the currency conversion?
Its constantly fitting to check things online before you do any sort of procurement or offer of items to get the real rate. So also, it is dependably a decent practice to check the most recent conversion scale of monetary forms previously changing over it. There are different sites which says that they will give you the best cost, however there are some shrouded conditions which the client isn't comfortable with. Notwithstanding, Indianivesh is one site which demonstrates to you the most recent trade rates and is totally straightforward. Here you won't locate any sort of shrouded conditions and in this way you will get the genuine incentive for you cash trade.To find out about trade rates and money transformation check Currency Exchange.
Why are exchange rates for major currencies always measured in terms of US dollars?
It varies a bit depending on which country you're in and the context, but in general, a larger share of people globally are more familiar with the value of the US dollar than any other currency. Therefore, if you want a lot of people to understand current exchange rates, you should use the US dollar as the base.The US dollar is also the most traded currency in the world, so when people are looking to exchange money, there's a high probability that they are either buying or selling US dollars.(Planet Money)
Currency TRIANGLE ARBITRAGE?
There was a Japanese research paper that indicated that there are plenty of triangle arbitrage opportunities. I don't have the reference, but it wasn't hard to find. As far as my own experience, I'm not quick enough with the calculations in order to take advantage of most opportunities. Most likely you'd need a computer program to do the work. I'm sure many program traders have already done that. Also, if you're trading forex, you need to make sure that you can actually take delivery of the currencies since many forex brokers make you unwind your positions by buying and selling currency pairs rather than allowing you to take actual delivery. If you have to reverse all your pairs then you could lose all your profit.
How do I change the currency of all numbers in an excel spreadsheet using a drop down list?
Why not just make three columns of data or three different worksheets, one with each currency? This way, you could put in the exchange rate and the worksheet will calculate the values. If you want to present to audiences in three separate currencies (GBP, USD and AED), create one worksheet each. Label your starting worksheet as GBP. Somewhere on this sheet, include cells for the exchange rate for USD and AED. On your second worksheet, labeled USD, where you have your amounts, write the formula =+GBP!A1*GBP!$A$14 In this example, A1 is the first cell I want to convert. Cell A14 contains the USD exchange rate. Remember to use the absolute cell reference ($) if you need to copy the formula across a range so that it always refers to cell A14, which is your exchange rate, regardless of where you copy the formula to. Once you have completed the USD page, convert the currency indicator from GBP £ to USD $. Now you can do the same for a third page AED, remembering to reference the proper exchange rate for AED. By doing it this way, you can show all the currencies at the correct and updated values. It requires no additional programming or knowledge of Excel from your customers - they only need to click on the page containing their currency.
Are unrealized foreign exchange gains and losses taxable?
Good question. You probably have seen this: "Make all income tax determinations in your functional currency. If your functional currency is the U.S. dollar, you must immediately translate into dollars all items of income, expense, etc. (including taxes), that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. Use the exchange rate prevailing when you receive, pay, or accrue the item. If there is more than one exchange rate, use the one that most properly reflects your income." http://www.irs.gov/businesses/small/arti... Periodic payments or accrual of interest under the loan may generate foreign currency gain or loss under § 988. The gain(loss) is partially realized each time a payment against the loan is made or an accrual recorded. Makes for a delightfully complicated calculation. The accounting adjustment you describe for unrealized fx gain does not sound like an accrual per se UNLESS your accounting also books accrued loan interest and uses it as an expense for tax accounting purposes. In this case, the accrued loan interest is booked in US Dollars, with the appropriate currency conversion. The foreign currency income(loss) is thus built into this entry. Hope this helps.
Is it true that travelers should not exchange currency at international airports due to bad exchange rates?
In general, YES!The trick is to think of money, the physical notes/coins as a commodity - oranges/apples etc.In a place where there are lots of apples (US dollars) America they want/need to buy Oranges (GBP £) as cheaply as possible, but oranges are a scarce commodity so they will offer you a rate (eg $1.20 : £1) when you want to buy apples with your oranges. If you were in the UK doing the same transaction they would have a surplus of oranges and a scarcity of apples and if you wanted to buy those apples the rate would be higher than in America ($1.10 : £1).Now, once you are inside an international airport you are treated like you are a trapped customer (because you, in effect are) and you will not say to the Foreign currency bureaux that the rate is too high I’m going back to my high street bank - 2 hours drive away. So their rate will be even less favourable to you.The solution?Well a solution, I have found is to have a bank account that doesn’t charge you a fee for ATM withdrawals in a foreign country, and to use the ATM most convenient to you after you have left your arrival airport. This avoids the airport trap and most banks share an ‘overnight rate’ that is the rate between the banks with which they will charge eachother for overnight transactions. This rate is often shaved a little (some profit is taken from the real market rate) and is provided to you the normal high street consumer via the ATM.So, get enough foreign currency from you high street bank to cover entry taxes / transfer from airport / tips to bell boys etc. Then once you have settled in go to the nearest high street ATM (not the one in the hotel lobby as you are treated like a trapped consumer there too) and take out enough spending money to satisfy your needs. The additional advantage of this is that you do not have bundles of money to carry around/ leave in your room etc.
Is 29.49% a high interest rate on a credit card?
If you are trying to rebuild your credit, 24% is fairly common assuming your credit is seriously bad. 29.49% is a vile and nauseating interest rate for any credit card. If your credit has a few bad spots but nothing serious, 15% to 20% should be your target. Also watch out for fees, such as annual fees, monthly surcharges, and currency exchange fees for foreign transactions. And one more thing, NEVER use a credit card for Cash Advances. That's going to be a separate interest rate, usually starting at 20% even for a good credit card, and sometimes beyond 35%.
When does it become cheaper for a Canadian to buy American, considering the exchange rate and shipping costs?
I was asked the same question two years ago in an economics class. I guess in general, you need to be aware of the recent or historical trends of the exchange rates, and be familiar with the types of events that cause fluctuations. Monetary policy and geopolitics probably being the prime reasons - overall, current affairs with an element of speculation. It’s worth getting a Chrome Extension for live exchange rates so you don’t miss out the immediate changes (if you use Google Chrome).I recently found this extension quite handy Find Exchange Currency Converter*Update It’s on the App Store for Mac OS users as well, if you just search Find.Exchange or click the iTunes link Find.Exchange on the Mac App StoreYou can see when the major bumps and dips were and search if anything specific happened on those days. This function would actually help economic history students out for their presentations lol.Let me know your thoughts on my recommendation XD