UK Finance (uk.finance) Discussion about Finance issues in the UK.

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Old July 12th 04, 10:14 AM posted to uk.finance
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Default $-- is losing me thousands

I'm currently making all my money from US companies, usually I'll get a wire
every few weeks straight into my LTD companies bank account. Since the
exchange rate has been so bad for the last few months the amount of money
I'm losing in the conversation is getting slightly painful.

What options do I have? would it be advisable for me to setup a bank account
in the US, and have payments put in their to transfer over when the rate is
better? or is there some other way I can prevent losing out in the way am I
now?




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Old July 12th 04, 11:28 AM posted to uk.finance
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Default $-- is losing me thousands


"luke" wrote in message
...
I'm currently making all my money from US companies, usually I'll get a

wire
every few weeks straight into my LTD companies bank account. Since the
exchange rate has been so bad for the last few months the amount of money
I'm losing in the conversation is getting slightly painful.

What options do I have? would it be advisable for me to setup a bank

account
in the US, and have payments put in their to transfer over when the rate

is
better? or is there some other way I can prevent losing out in the way am

I
now?


you'll have trouble opening a US account without a social security number.
However, you can get a US dollar account with a number of UK offshore banks,
HSBC and Nationwide spring to mind.

you can put your money in there until the exchange rate improves but given
the current US fiscal policy, you'll be waiting a while.


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Old July 12th 04, 11:51 AM posted to uk.finance
Tam Tam is offline
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Default $-- is losing me thousands

On 12/7/04 11:14, in article , "luke"
wrote:

I'm currently making all my money from US companies, usually I'll get a wire
every few weeks straight into my LTD companies bank account. Since the
exchange rate has been so bad for the last few months the amount of money
I'm losing in the conversation is getting slightly painful.

What options do I have? would it be advisable for me to setup a bank account
in the US, and have payments put in their to transfer over when the rate is
better? or is there some other way I can prevent losing out in the way am I
now?


You are not losing anything in the conversion. You are losing because the
exchange rate has turned against you and you failed to hedge the risk of
signing a contract denominated in dollars.

You can, if you like, open a US$ bank account. You might as well do that in
Britain. But you will still be speculating on a recovery in the exchange
rate, something that is doubtful given the Bush administration's penchant
for deficit spending and funding that spending by selling Treasury bonds in
foreign markets.

You have already lost. Make the best of the situation and do not assume you
can bet against the trend.

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Old July 12th 04, 10:57 PM posted to uk.finance
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Default $-- is losing me thousands

In message , luke
writes
I'm currently making all my money from US companies, usually I'll get a wire
every few weeks straight into my LTD companies bank account. Since the
exchange rate has been so bad for the last few months the amount of money
I'm losing in the conversation is getting slightly painful.

What options do I have? would it be advisable for me to setup a bank account
in the US, and have payments put in their to transfer over when the rate is
better? or is there some other way I can prevent losing out in the way am I
now?


Opening a US$ account will only work if the rate moves in your favour,
whenever that may be if at all.

You could buy a forward currency contract with your bank when you enter
into the contract with your US clients, so as to fix the exchange rate,
but this will cost you money which you should build into your price.

OR you could invoice in sterling and pass the risk to your clients.
--
John Boyle
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Old July 13th 04, 08:51 AM posted to uk.finance
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Posts: 364
Default $-- is losing me thousands

On Mon, 12 Jul 2004 11:14:48 +0100, "luke"
wrote:

I'm currently making all my money from US companies, usually I'll get a wire
every few weeks straight into my LTD companies bank account. Since the
exchange rate has been so bad for the last few months the amount of money
I'm losing in the conversation is getting slightly painful.

What options do I have? would it be advisable for me to setup a bank account
in the US, and have payments put in their to transfer over when the rate is
better? or is there some other way I can prevent losing out in the way am I
now?



What are your bank charges like?
I get charged by the company who deals with it and then my bank add on
some money too.

--
Free stuff by post
http://www.freestuffbypost.co.uk


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Old July 15th 04, 12:02 AM posted to uk.finance
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First recorded activity by FinanceBanter: Jun 2004
Posts: 43
Default $-- is losing me thousands

On Mon, 12 Jul 2004 11:14:48 +0100, "luke"
wrote:

I'm currently making all my money from US companies, usually I'll get a wire
every few weeks straight into my LTD companies bank account. Since the
exchange rate has been so bad for the last few months the amount of money
I'm losing in the conversation is getting slightly painful.

What options do I have? would it be advisable for me to setup a bank account
in the US, and have payments put in their to transfer over when the rate is
better? or is there some other way I can prevent losing out in the way am I
now?


Assuming it is a bit of money you could always hedge your FX using
futures <URL: http://www.investorwords.com/2136/futures_contract.html
or forward contracts however for smaller amounts the costs will
probably outweigh the benefits.

Speak to your bank manager who should be able to point you in the
right direction and give you an idea of charges for the amounts that
you are talking about.

--
Guttorm


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