Question re currency conversion

shane86

...... seeing as I havent been abroad/had to exchange money in years, I need advice.


Right, so one euro equals 66p at the moment. Essentially, if I change 600 euro Id imagine I will get £400 stg. But there is a loss to be made somewhere, correct? How much exactly. The way I would see it, someone in the UK making £400 stg per week would make 600 euro here, and the buying power would be roughly equivalent. Where is my loss, how much and why?

tbh this is so obvious I dared not ask anyone in the real world, but due to having mates who make plenty of plans but go nowhere in the end this is my first trip abroad in many years.

Oriel

I take it you're not talking about commission?

_blank_

There is no loss to be made, apart from if you come back with STG and want to change it back, and suddenly it's like 80p <-> €1, you'd get less EUR back in that case.

Also, the converse applies, if it gots to, say, 50p <-> €1 you'd get more EUR back, and make a nice profit.

This is what currency dealers do all the time, and they don't drive Ladas.

But no, you make no loss apart from the comission.

layke

http://www.xe.com

Updated hourly. TIs hand for conversion if it's any use to you.

big b

layke wrote:

http://www.xe.com

Updated hourly. TIs hand for conversion if it's any use to you.

Don't expect to get such good rates at your local travel agency though.......

Terry

http://www.xe.com/ucc
To be exact.

Thomas_S_Hunterson

All banks have a Buy/Sell spread. They will buy sterling off you for a lower price than they will sell it to you for. Therefore, if you buy €200 worth of sterling and then convert that straight back to euro, you will lose out based on the rates offered.

This is where they make their profit in a stable market, and where the customer loses out.

shane86

Cheers lads 350 euro, got my sterling for only 3.50 EUR commision Dunno why, but id some mad figure like 10% floating around in my head, was surprised it costs so little.

jor el

sean_keevey wrote:

All banks have a Buy/Sell spread. They will buy sterling off you for a lower price than they will sell it to you for. Therefore, if you buy €200 worth of sterling and then convert that straight back to euro, you will lose out based on the rates offered.

This is where they make their profit in a stable market, and where the customer loses out.

What gets me about that is that they charge commission on top too, so it's double profit time for the banks.

Thomas_S_Hunterson

I'm told by a good friend, (although i've never tried it as I haven't had to get currency myself in ages) that if you just insist to the cashier that you don't pay commission then they wont charrge it. They'll protest and say that everyone pays it, but just insist that youd don't and they won't make you pay it.

rrpc

sean_keevey wrote:

I'm told by a good friend, (although i've never tried it as I haven't had to get currency myself in ages) that if you just insist to the cashier that you don't pay commission then they wont charrge it. They'll protest and say that everyone pays it, but just insist that youd don't and they won't make you pay it.

Urban myth. You could insist that you are staff, and make up some excuse about your identification. That would get you off commission.

The commission is supposed to cover the cost of converting small amounts of cash as the buy/sell spread in those cases wouldn't pay the cashier for the time it takes to faart.

Easiest way to convert to sterling btw if you don't like queuing is to use the cash machine in the departures hall in Dublin Airport. It dispenses Euro, Sterling and Dollars.

You can also use any ATM in the UK with your Irish issued ATM card.

daveirl

This post has been deleted.

shane86

Jaysus lads, are yis all from Cavan? tbh I couldnt be arsed trying any tricks to get out of paying a poxy 3.50 commission, banks are gangsters and I generally hate them, but fair play to them for keeping it this low, they could have our balls in a grip with 10% if they wanted.

So while on the subject of foreign travel, any Irish pubs in Glasgow recommended for the pre club, and any good nightclubs to recommend for birds and music (into hip hop, dance, particularly early to mid 90s, just no cheese man!)

Or add here

http://www.boards.ie/vbulletin/showthread.php?t=2055124586

Nein replies yet

Gran Hermano

Why go to Scotland to visit an Irish bar when you can vist one at home every
night? Always amazes me why people do this when abroad.

shane86

LOL A Slovak girl said the same to me in work re my intended trip to Prague for the September Czech match, when I told her i wasnt going to the match but would watch it in an Irish bar, asking why we are so insular abroad (a few of my mates are going to the actual match, Im late into the plan and so will probably just tag along, and watch the match in an Irish bar with some random expats). I explained its a security thing, I dont fancy watching a Czech v us match alone in my green jersey , drunk as **** singing fields of athenry in some pub in the suburbs or inner city neighbourhoods of Prague, surrounded by several hundred drunken red shirted lads do I.

And as I said to her, as for the Irish being insular, theres at least one Czech, one Polish and one Russian bar in town, and in Zanzibar at the weekend yid be hard pressed to find an Irishman (dunno why mind, the entry fee is OK and the tunes and women are decent)

I dunno, just want to reminisce what its like to be in an "Irish pub" where drink is cheaper than 4.20 minimum a pint