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exchange rates

Discussion in 'Money Management' started by Triu, 7th Jun, 2007.

  1. Triu

    Triu Well-Known Member

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    1st Sep, 2006
    Posts:
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    Location:
    WA
    Hi can someone please tell me why the exchange rates changes between sending the money and receiving it.

    If i want to send AUD over to another country why does the exchange rate go down when it gets there?

    any reasons?
     
  2. Tropo

    Tropo Well-Known Member

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    Location:
    NSW
    The rate shown for the US dollar is a representative mid-point determined by the Reserve Bank on the basis of quotations in the interbank foreign exchange market at 4 pm Eastern Australian time on the day concerned.
    Rates shown for most other currencies are calculated by crossing the rate for the US dollar with mid-points of buying and selling rates quoted at the same time. These rates are indications of market value only and may differ from those quoted by foreign exchange dealers.

    Foreign exchange rates are subject to change at a moment's notice.
    Although up-to the minute rates may be obtained by contacting a local Royal Bank branch, rates can only be guaranteed at the time the purchase or sale is conducted.
    Exchange rates for cash are less favorable to recover shipping and handling charges.
     
  3. handyandy

    handyandy Well-Known Member

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    6th Jun, 2006
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    Location:
    Sydney Nsw
    Just think of money as any other goods or service. The person selling you the product (money) has to make some money to stay in business their margin is their reason for staying in business.

    Cheers
     
    Dean Collins likes this.
  4. Grinder

    Grinder New Member

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    1st Jan, 2008
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    Location:
    Melbourne
    exhanges rates through a broker

    Excuse my ignorance but need to clarify some basic stuff :eek:

    When transfering funds to my US trading account I am given a different rate then the spot price. In some instances it can be a cent or two worse off then the days low :eek:, so why is this so? and how can I know what price I will get before I send it over?

    Thanks in advance.
     
  5. TDFawaz

    TDFawaz Tony

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    1st Jul, 2010
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    Location:
    Brisbane, QLD
    I don't know that but it happened to me too!
     
  6. Waimate01

    Waimate01 Well-Known Member

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    26th May, 2008
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    Location:
    Sydney
    It's very hard to get an exchange rate anything like what you see mentioned on the 7:00pm news. I'm involved with a business where the sometimes convert several hundred grand at a time, and even at those levels, the rate is nothing like what you see in the newspaper.

    You can do much better using agencies such as Forex Group. This closes the gap, but it'll still be some distance from what you see on TV.

    For large amounts, using an agency instead of a regular bank can gain you several thousand per transaction.
     
  7. Dean Collins

    Dean Collins New Member

    Joined:
    20th Sep, 2016
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    Location:
    NY
    Use a company that tells you the rate when you are booking the trade (eg USForex etc)