Ask MetaFilter questions tagged with Money and currency

Best option for regular US to EUR currency exchange?

finitejest — Fri, 30 Oct 2009 12:23:40 -0800

I'm an American who's just bought a lovely home in the EU. Yay! Now I have to make regular mortgage payments while still living and working in the US. How do I transfer money over to our EU bank account on a regular basis as cheaply as possible?... Some more info: It seems as though the majority of the currency exchange companies are targeted towards Brits. The rest look pretty shady.

We've looked at Currencies Direct, however in the middle of our application process we were informed that because of some new laws they were no longer able to open new contracts with any US citizens not based in the same state (GA) as their only US office.

Now we're out of ideas. We've even looked to see if we could somehow wrangle a PayPal account into euros and do exchanges through there.

Currently banking with BOA and doing wire transfers, but they charge hefty fees on top of the normal exchange rate.

So... halp please! Any suggestions from personal experience?

Most cost-effective way of transfering money from UK to US

moiraine — Thu, 22 Oct 2009 12:30:39 -0800

Need to transfer modest amounts of money from UK to a US bank account every 2-3 months. What would be the most cost-effective way to do so? I am working in the UK. I need to pay off study loans in the US, with the first loan installment due in a couple of months. I intend/ need to transfer between anywhere between $500 to $2000 to my US bank account regularly, say every 2-3 months.

The most cost-effective way that I know of would be to take out the money in the UK, change at the Post Office (with 0% commission rates), and physically the money to the US, and place it in my bank account there. This, of course, assumes my plane ticket is paid for and I am not robbed (I have done this before, and I was fine, but I don't want to do a regular basis).

Wire transfer appears to be the second cheapest method, and I am happy to pay the wire transfer fees (~20 pounds, depending on the bank). However, I understand that the bank have non-competitive exchange rates, which are hidden costs of the transfer (~50 pounds will be 'lost' in the exchange).

I considered making regular transfers from my Paypal UK to my Paypal US account. This would be extremely convenient, but there are hefty commissions -- about 5%, and I think more is taken off from the receiving end (?)

Anyway, I was wondering whether people had any personal experience with wire transfer and non-competitive fees. Any additional ideas are also appreciated. Would appreciate if there were no comments like, "But if you just paid a little more, you could save yourself the hassle!" as I am willing go through a fair amount of hassle just to pay less fees.

I have family in the US who are probably willing to cash in a check for me every month, if this makes any difference.

Protection in a weakening economy

CollectiveMind — Mon, 05 Oct 2009 05:16:04 -0800

Our deficit and our debt are at record levels, even compared to WWII. Then, the debt was financed internally, not by other countries, so the interest we could pay was lower and the money was recycled in the U.S. Now, the debt and deficit are mostly financed by other countries through bond offerings and the like. And as they grow, those debtor countries will want higher interest rates on repayments, which drains money out of the U.S. Does anyone know of, or can anyone suggest a position to take in-case our national financial fortunes deteriorate slowly? A crash, understandably, wouldn't offer much safety for anyone except the very rich. And I'd expect social unrest would threaten even them at that point. But in general and for the average investor, are there any suggestions for investment or money/asset movement strategies that can protect one in an economy with (a) increasing foreign debt payments in the short term, (b) potential significant interest rate increases in the medium term and (c) lessened national economic influence on the international currency markets in the long term? I just can't seem to find any financial wonk willing to speak plainly on this.

You could sail this puppy away TODAY, for just 7300 pieces of eight. How does that sound to you?

aiko — Wed, 23 Sep 2009 05:32:09 -0800

What could one piece of eight have purchased in Boston in 1777?

Online currency exchange?

krisptoria — Wed, 11 Mar 2009 16:57:55 -0800

Anyone here have experience ordering foreign currency online? I know I'm over-preparing for my four day trip to Montreal, but I'd really like to have some CAD in hand when I get there. I'm sorta too lazy to find a bank around here that will do it for me...

Where is my money stored?

All.star — Wed, 04 Feb 2009 20:16:50 -0800

Is most money just numbers on a computer screen? Or do banks actually have cash in their vaults to back up the "digital" money. I ask because I never see the actual paper or coin money I have - everything is direct deposited and then I use a debit card. I wonder if there is actual paper and coin money enough to match all the money we have that we never physically see or touch.

oh my should I put my money in a mattress?

borkingchikapa — Mon, 15 Dec 2008 07:29:53 -0800

I'm moving overseas from the US in less than a year, and my stellar powers of observation tell me that there's a good chance the dollar is going to eat shit before then. My savings are <$10,000, what can I do with them to ensure that I'm not cursing the economy when I leave? Is putting it in foreign currency enough, or is there a better option? How do I do that? I know we're probably not talking about anything catastrophic here (though maybe!), but I've had the dollar devalue on me before and it sucks even when it's a fraction of a percent. I have everything in a money market account now, which I like because I'm earning some interest but all of my money is still easily accessible. I'm not looking for some long-term investment solution, I just want to make sure I have roughly the same amount of money I put in there at the end of next year.

Swiss bank accounts 101, or something different?

xanthippe — Tue, 07 Oct 2008 01:56:54 -0800

Where should I keep my money (to protect it from the US economy)? I'm American and it's in US$, but I don't live there and don't have any good reason to keep it there. I don't have that much, but am about to receive an inheritance, which is why this is an issue. Let's say that about half of what I receive will be in either cash or liquid assets, and half will be in Beneficial IRAs (the amounts are significant to me, but probably wouldn't make an international financial planner/accountant blink).

We all know about the US economy. The relative value of the dollar is decreasing, we can count on some inflation, the stock market, etc. etc. I plan on either investing or saving most of my money, but I am unlikely to ever use it in the US (I'm actually thinking about buying a flat in Europe as an investment right now). I may use a small chunk of it for some traveling/living expenses in the near future, and would generally prefer to have all of it secure but accessible and earning some income.

I realize that selling securities/investments/etc. that are part of the portfolios these assets consist of (some of the liquid assets and some of the IRA) will lock in my losses now; however, I'm also concerned that, even if the value recovers over time, the long-term depreciation of the dollar and the effect of inflation may negate any rebound. Is there any real advantage to not moving these assets out of the US (i.e. out of US banks, the US investment market, etc.) right away?

If I do move my money abroad, how should I actually do this? What are the logistics? And where to: Swiss bank account? Investments? What currency should I go with? I may have the option to invest the assets of the Beneficial IRA in foreign markets; should I think about this, or just cash them out, take the penalty, and run with the cash? If I can invest the contents of the IRA internationally, does that really preserve it from the US market?

I currently live, work and have a bank account in Oman; the local currency (as in most GCC states) is pegged to the US dollar. There has been lots of talk about unpegging the currencies, or re-pegging them to the Euro (Kuwait already unpegged theirs). I'm no economist, but things seem pretty stable locally, and it seems to me that if I exchanged all my dollars for Omani rials while they are still pegged - i.e. the value of the dollar has not decreased against the rial as it has against every other world currency that is not pegged to it - that I could stand to benefit immensely from this transaction by either maintaining the value of my money in rials if the currencies are unpegged while the dollar drops, or even seeing it increase for the same reason. Is this foolish or a good opportunity?

I don't have a long-term commitment to Oman, however - it's just where I happen to be living right now. I don't have a long-term commitment to any place, and specifically not to the US (despite my citizenship). I'm essentially a nomad (though I may well stay where I am forever - only time will tell). So the real question is, for the long-term, where should I make my "financial home" - where should I maintain my savings and investments not knowing where I will be living for the foreseeable future? How can I educate myself about this?

I don't know what to ask more specifically because I have never had to deal with finances in excess of a few thousand dollars before, so any advice as to where to start and how to prepare myself for this kind of decision-making will be appreciated. I need to 1) protect my money from the US economy (maintain as much of its value as possible regardless of where it is invested/what currency it is denominated in); 2) make money if possible by investing/earning interest; 3) ensure that I am not vulnerable to taxation/residency or citizenship requirements for any country I keep my accounts in/maintain my investments from.

Small, marked bills

tizzie — Mon, 09 Jun 2008 10:06:24 -0800

I keep seeing store clerks drawing marks on $20 and $50 bills before closing the cash register. Why are they doing it?

Questions about tranferring money overseas

gfrobe — Mon, 17 Mar 2008 06:39:56 -0800

Need to transfer a large amount of money from US to UK and have a few questions about currency brokers and taxes. I'm going to be transferring 100k from a US savings account to a UK saving account and want to be sure I get the best exchange rate. Should I use a currency broker for this rather than my regular bank? If so, can anyone recommend a good reputable broker?

Also, what are the tax consequences of a transfer like this? Will I have to pay UK taxes on the money I'm bringing into the UK?

How can I protect myself against the falling US dollar when sending work overseas?

lsemel — Sat, 03 Nov 2007 05:16:41 -0800

How can I protect myself against the falling US dollar when sending work overseas? As part of my business I outsource web design and programming projects to overseas vendors in various countries. With the falling US dollar, I've recently had a project increase in cost between the time the project was initiated and the time when it was completed, and I want this to not happen again.

The duration between starting the project and completion is usually several months. I currently pay vendors through PayPal, or through the outsourcing site itself for countries that PayPal doesn't serve.

I want to ensure that from now on, whatever I budget for a project, that's what I actually end up paying. Is there a way I could go about doing this?

Saving money in euros...

Afroblanco — Fri, 02 Nov 2007 11:49:23 -0800

I keep all my savings in a Citibank e-savings account, which is like a regular savings account, only with a higher interest rate. Recently, the dollar has totally been tanking, and this trend doesn't show any signs of reversing. What's the easiest, safest, most profitable way for me to save my money in euros instead of dollars? This is what I like about the e-savings account :

1) My money is FDIC insured.
2) The interest rate is higher than that of a typical savings account. It's somewhere around 4.25%.
3) I can take my money out any time I want without incurring any kind of penalty.
4) It's ultra-low-maintenance - I can just put my money in and forget about it.

I would like to put my money in euros without sacrificing any of the above, if possible. I know that I won't be able to find something that's FDIC insured, but I would like something that has a similar degree of security.

The fact of the matter is that the dollar is totally tanking, and I don't want to see my life's savings evaporate because of inflation or anything else that I don't really understand.

How can I turn a buck on the dollar's woes?

paul_smatatoes — Thu, 20 Sep 2007 12:25:36 -0800

Can your average person who spends their entire workday in front of a computer short the dollar online, through some sort of investing site? I'm macroeconomically literate, but know next to nothing about what sort of options are available for playing with my money. I read about day-trading Japanese moms making money on the currency trade, and I'd like to keep my relatively meager savings from vanishing into some Weimarish wheelbarrow-of-bills traffic jam, so...do I need to learn Japanese to do it?

How much (was) that doggy in the window?

serazin — Fri, 04 May 2007 21:32:22 -0800

How do I find out the value of a dollar in a given year? I read a lot of history books. For example, right now I'm reading a book on the Gold Rush. The author gives many examples of how much 49ers paid for their passages onboard ships to California, but I have no idea how much $600 was worth at that time. I was fantasizing about finding a chart with every year of US history on one axis, and the prices of staples or common expenses on the other. If that particular chart doesn't exist, can you recommend something that will give me the same basic info?

Yen --> USD --> ??? --> Profit!

Muu — Mon, 05 Mar 2007 15:12:03 -0800

What's the best way to exchange Japanese Yen (in cash form) to USD? I have about the equivalent of $8000USD in yen sitting around in an envelope. Safety of holding that much money in cash aside, this was due to the rates being iffy when I was returning to the states (1USD < -> 120Y or so), so I decided I could exchange that once I got back to the US and the rates improved. And improve it has, for the time being anyway, thanks to the whole carry rate fallout.

So I just came back from the bank, astonished that they take what seemed like a 6% cut from the whole exchange, before the service charge of $10. Reading a bit through MeFi revealed to me that the 1% or so difference in rates @ Japan is actually very good -- something I wish I knew late last year.

What're my best options now?

What do I need to know about money changing?

davidriley — Mon, 26 Feb 2007 09:07:33 -0800

I am leaving for Japan in two days: should I change money before or after I get there? Does it matter? How do I do it?

Yen to Pounds : Best Exchange Rates?

0bvious — Thu, 21 Sep 2006 23:35:06 -0800

Currency Exchange: I have a handful of Japanese Yen and a desire the British pound wasn't so strong. What are my best options for getting my Yen converted into Sterling? Any advice as to what I could do with my Yen to increase its Pounds Sterling value?

Understanding US dollar denominated securities

ikkyu2 — Sun, 03 Sep 2006 18:17:31 -0800

Help me understand U.S. dollar-denominated foreign securities. I understand some reasons why one might want to invest in foreign instead of domestic securities- diversification, for one; and expectation of a weakening dollar, for another.

I also understand that if you buy the foreign securities in U.S. dollars, you're in a sense avoiding exposing yourself to unpredictable fluctuations in the foreign currencies; some currencies are much more volatile than the U.S. dollar.

But if you have an expectation of a weakening dollar, does it still make sense to invest in U.S. dollar-denominated securities? Does the fact that the foreign company is presumably transacting the majority of its business in the foreign currency make this type of investment a hedge against a weakening dollar? And finally, are the theoretical implications different for equity instruments than for financial instruments such as bonds (debt)?

The best answers will explicitly exclude investment advice. I do not require investment advice. This is just about understanding - I want theoretical perspectives on the answers to this question.

what the heck is broad and narrow money?

dobie — Wed, 26 Jul 2006 17:57:44 -0800

When economists talk about broad- and narrow-money, what exactly are they talking about?

Currency Conversion

jonshadow — Thu, 20 Jul 2006 06:40:19 -0800

I'm going to the States on the weekend and I'm wondering what the best way is to convert Canadian dollars to American dollars? What option provides the best conversion rate for $300-500?

It's all about the benjamins (and ulysseses), baby.

oaf — Mon, 03 Apr 2006 22:38:49 -0800

No bills larger than...? I manage a box office at a theatre. Occasionally, people will try to pay with a large bill ($50 or $100). Unless they're buying more than five tickets, this is not reasonable, and it has the added effect of wiping out my ability to make change very quickly (sometimes instantly). I want to develop a consistent policy to avoid this. Currently what I'm thinking is that I won't accept a $50 for a purchase of less than $25 or a $100 for a purchase of less than $50.

Does this seem reasonable? There's no legitimate reason to try to pay for $20 worth of tickets with a $100, especially since no ATM I've ever been to actually dispenses bills that large; you've got to be trying to impress someone by carrying around huge denominations like that.

(The only other thing I've thought of is to keep a wad of $2s stashed in the safe, and then to give change for large bills entirely in $2s if possible. Because nobody but me likes them.)

Swobody! Fabryk! i Ziemi! Help my exchange my zloty!

deafmute — Tue, 24 Jan 2006 19:26:56 -0800

I have a not-insignificant amount of Polish zlotych. Help me figure out if and how I can exchange it... My zlotych appears to have been issued in 1988. My local currency exchange told me that the zloty was recently reissued by Poland, and that it might not be possible for me to get this exchanged. Is there someone knowledgeable in regards to Polish currency that could give me some advice and let me know whether this is worth anything or if I've just got some fancy paper?

This is what is looks like.

Exchange Rate Website?

billysumday — Thu, 13 Oct 2005 10:07:23 -0800

Is there a website that catalogs the daily exchange rates between countries? For example, if I wanted to know the exchange rate from Canadian to American dollars on July 27, 2005?

What are some examples of obsolete currency?

orange swan — Fri, 17 Jun 2005 10:29:18 -0800

What are some examples of obsolete currency — currency that was formerly used by a now-defunct political state or regime and is now worthless, except perhaps as a curiosity or historical artifact? This defunct currency would have to be paper rather than in bullion, as the latter never really becomes worthless. The only example I can think of is the currency issued by the Confederate States of America during the U.S. Civil war. Can you suggest any more recent examples?

Personal checks and paper currency: sizes

elisabeth r — Sun, 22 May 2005 21:36:17 -0800

In the U.S., personal checks and paper currency are the same size. So I've been wondering- is there an international standard size for personal checks? Or, do checks issued in one particular country match up with that country's currency? (And what about places like China, where the bills are all different sizes?) Thanks in advance for helping me sleep at night.