Living In The Philippines Forum

It’s Your Money => Money Exchanging => Topic started by: jonnyivy on March 15, 2008, 03:25:27 AM

Title: A quick question re pounds or euros
Post by: jonnyivy on March 15, 2008, 03:25:27 AM
I,m coming over this Monday for another visit, I\'ve got a handfull of Euros as well as british pounds. Instead of converting the Euros at my local bank for Pounds, can I just change them for Pesos once I,m there and save on the commission in UK. Has anyone worked out if there is any differance to the conversion rates for both; ie; Pounds to Pesos compared to Euros to Pesos ( being that the Euro is around 1.4 to the pound over here ) I guess what I,m trying to say is will I get a better rate by keeping the Euros or changing them to Pounds before I come.
ps.  Does the money changers accept the larger €100 euro bills ?
Thanks guys
Title: Re: A quick question re pounds or euros
Post by: on March 15, 2008, 06:21:43 AM
ps.  Does the money changers accept the larger €100 euro bills ?
Thanks guys

Yes, they\'ll change whatever u have last time I was there  ;D. Now, it\'s same I guess.
Title: Re: A quick question re pounds or euros
Post by: up2u on March 15, 2008, 07:52:44 AM
euros can be changed, it has to be cheaper than converting them twice, I changed 500 euro bills no problem
Title: Re: A quick question re pounds or euros
Post by: on March 15, 2008, 04:44:26 PM
When I changed 4000 euros into pesos I had it all in 100 Euro notes, money changer advised he\'d pay slightly more for 50 Euro notes YMMMV
Title: Re: A quick question re pounds or euros
Post by: jonnyivy on March 16, 2008, 01:42:38 AM
Thanks Captainron , I will change them to 50\'s in Amsterdam while I,m waiting for our next flight,

John
Title: Re: A quick question re pounds or euros
Post by: on March 16, 2008, 07:35:23 AM
When I changed 4000 euros into pesos I had it all in 100 Euro notes, money changer advised he\'d pay slightly more for 50 Euro notes YMMMV

The same often applies to large notes of any currency.

Colin
Title: Re: A quick question re pounds or euros
Post by: jonnyivy on March 16, 2008, 04:24:04 PM
Colin,
The reason I originaly asked about the Euros was because I was a bit confused about the methods used in my wifes village on my last visit in November last year. No problem to exchange the \"English\" £20 pound notes, was getting I think around 82 peso per pound. The last week I was there I handed over 5 of the brand new designed £20 notes and they said only 56 peso for these ones !! Mind you,..have you seen the new look £20\'s,... if any note looked fake, this is the one !! I have several hundred to bring over and they even \"feel\" fake to me. I,m hoping they,ve got used to them over in the Phils before I come over on Monday !!

John
Title: Re: A quick question re pounds or euros
Post by: coutts00 on March 16, 2008, 04:50:38 PM
John, try not to discuss how much money you are carrying with you, you never know who is watching this site and your pictures. Keep all matters of money private. Maybe it is better to put it in the bank and only pull out what you need from an ATM when you get here. I just did the math here and that is a lot of cash to be carrying.

Keep it out of site, only pull out small peso bills from your wallet or pocket, be sensible, we like our friends to stay just that way.

Wayne
Title: Re: A quick question re pounds or euros
Post by: coutts05 on March 16, 2008, 09:32:31 PM
John, welcome back to Philippines! :=)  Just a tip for your notes conversion, every time my German Uncle and family come over for a visit, they find \"CZARINA MONEY CHANGER\" has the highest value of conversion so far. Higher than the banks, than malls, and other private financial institutions....

- coutts05
Title: Re: A quick question re pounds or euros
Post by: jonnyivy on March 17, 2008, 01:19:33 AM
Cheers Wayne for the advise, I do think I,m pretty safe with my cash. Although I,m a big guy, I still know I can fall down with a few theives on my back or worse. But as you rightly say, we don,t know whose watching the site.
Anyway, I,m hoping to have a good relaxing holiday and catch up with my freinds over there for a few beers and a good laugh. The weather here in Scotland is totally miserable, so I,m hoping to get plenty heat back into my bones.

Here I come !!!!

John
Title: Re: A quick question re pounds or euros
Post by: on March 17, 2008, 07:43:07 AM
Colin,
The reason I originaly asked about the Euros was because I was a bit confused about the methods used in my wifes village on my last visit in November last year. No problem to exchange the \"English\" £20 pound notes, was getting I think around 82 peso per pound. The last week I was there I handed over 5 of the brand new designed £20 notes and they said only 56 peso for these ones !! Mind you,..have you seen the new look £20\'s,... if any note looked fake, this is the one !! I have several hundred to bring over and they even \"feel\" fake to me. I,m hoping they,ve got used to them over in the Phils before I come over on Monday !!

John

Hi John,

I have been away too long to see the new notes. I would recommend that you follow Waynes advice and pay most of them into the bank and use an ATM for your spending money. Apart from the risk, if you had problems changing them before, then you may have problems again. I have a suspicion that the larger notes may be used for black market operations, and a new and relatively unknown design may not be acceptable and therefore not get a better rate. The larger notes have to be clean and unmarked.

Colin
Title: Re: A quick question re pounds or euros
Post by: on June 10, 2008, 11:52:53 AM
I don\'t understand the value of the GBP, over rated in the Philippines IMO, (National dept to England)? But, either it or the Euro is far better, (like almost 50/ 100%), then the U.S. dollar here in the Philippines!

Enjoy your stay!!
B-Ray
Title: Re: A quick question re pounds or euros
Post by: on June 10, 2008, 12:46:57 PM
I don\'t understand the value of the GBP, over rated in the Philippines IMO, (National dept to England)? But, either it or the Euro is far better, (like almost 50/ 100%), then the U.S. dollar here in the Philippines!

Enjoy your stay!!
B-Ray

All the currencies are tied together, if for example you get $2=£1 and P40=$1 then P80=£1. I don\'t understand how the system works, but I can\'t see how the £ can be seen as overated in comparrison to the $.

Colin
Title: Re: A quick question re pounds or euros
Post by: coutts00 on June 10, 2008, 01:46:56 PM
Colin, think of it this way, currently the pound and euro are appreciating and the USD is depreciating, if a money exchanger takes in pounds or euro today and cashes them in tomorrow he may get a better return than say today, however if he takes in Dollars the way the dollar is deprciating, it may be worth less tomorrow, is that right ben?
Title: Re: A quick question re pounds or euros
Post by: on June 10, 2008, 02:22:05 PM
Colin, think of it this way, currently the pound and euro are appreciating and the USD is depreciating, if a money exchanger takes in pounds or euro today and cashes them in tomorrow he may get a better return than say today, however if he takes in Dollars the way the dollar is deprciating, it may be worth less tomorrow, is that right ben?

The GBP was at over 2 to the USD a few months back. It is now around 1.97. I believe that is depreciating. The Euro has been fairing much better going from 1.30 to 1.55ish lately. The USD is currently over 44 to the Piso. The highest it has been for some time
Title: Re: A quick question re pounds or euros
Post by: on June 10, 2008, 04:33:24 PM
Colin, think of it this way, currently the pound and euro are appreciating and the USD is depreciating, if a money exchanger takes in pounds or euro today and cashes them in tomorrow he may get a better return than say today, however if he takes in Dollars the way the dollar is deprciating, it may be worth less tomorrow, is that right ben?

The GBP was at over 2 to the USD a few months back. It is now around 1.97. I believe that is depreciating. The Euro has been fairing much better going from 1.30 to 1.55ish lately. The USD is currently over 44 to the Piso. The highest it has been for some time

I am still confused, that\'s why I would like to find some simple reading matter on the subject.

Colin
Title: Re: A quick question re pounds or euros
Post by: coutts00 on June 10, 2008, 05:15:06 PM
I think my wife has a 6000 page book \"Understanding International Currency Fluctuations and the Free Market Economy, a Simple Step by Step Guide\".... I\'ll see if I can find it.
Title: Re: A quick question re pounds or euros
Post by: BenK on June 10, 2008, 09:19:34 PM
Colin, think of it this way, currently the pound and euro are appreciating and the USD is depreciating, if a money exchanger takes in pounds or euro today and cashes them in tomorrow he may get a better return than say today, however if he takes in Dollars the way the dollar is deprciating, it may be worth less tomorrow, is that right ben?

That\'s basically true, and the reason why the exchange rate for other currencies such as the pound or euro doesn\'t usually reflect a straight proportion to the dollar. Money is, after all, traded as a commodity, so there is a fair bit of forecasting that goes into determining a rate on a given day. And it also depends on what resources the moneychanger has to work with cross-exchange -- in other words, trading pesos for dollars and then trading the dollars for yen or pounds or euros to work back around to whatever ratio will eventually give him a profit in pesos.

Sorry to say, Colin, about the simplest reading material you\'re ever going to see on this topic is the sign behind the counter at the forex kiosk. The pound and the euro don\'t necessarily always match up against the dollar, so it can happen that one goes up while the other goes down, as you noted. The pound value floats against both the other currencies, and one of MANY factors that determines its rate is the relative supply of the two foreign currencies in the UK system.

Remember, the guys who do this for a living (I\'m glad I\'m too poor to worry about it), only live about five minutes into the future. Make your move when you can make a profit; ten minutes from now may be a different story.
Title: Re: A quick question re pounds or euros
Post by: Manila Cockney on June 11, 2008, 12:13:00 AM
The pound is not moving in the same direction as the Euro. Since Jan 1, the pound has depreciated significantly from the Euro falling from 1.36 to 1.26.
The Euro has appreciated against the dollar going from 1.46 to 1.55. The pound has depreciated slightly against the dollar moving from 1.985 to 1.95
Title: Re: A quick question re pounds or euros
Post by: BenK on June 11, 2008, 01:21:43 AM
The pound is not moving in the same direction as the Euro. Since Jan 1, the pound has depreciated significantly from the Euro falling from 1.36 to 1.26.
The Euro has appreciated against the dollar going from 1.46 to 1.55. The pound has depreciated slightly against the dollar moving from 1.985 to 1.95

See, someone actually pays attention, which I don\'t outside of dollars. Illustrates the point, each country\'s currency can move to a noticeable degree independently of other currencies. If you really want to get whacky, we can start discussing yen.
Title: Re: A quick question re pounds or euros
Post by: on June 11, 2008, 06:45:47 AM
Colin, think of it this way, currently the pound and euro are appreciating and the USD is depreciating, if a money exchanger takes in pounds or euro today and cashes them in tomorrow he may get a better return than say today, however if he takes in Dollars the way the dollar is deprciating, it may be worth less tomorrow, is that right ben?

The GBP was at over 2 to the USD a few months back. It is now around 1.97. I believe that is depreciating. The Euro has been fairing much better going from 1.30 to 1.55ish lately. The USD is currently over 44 to the Piso. The highest it has been for some time

I am still confused, that\'s why I would like to find some simple reading matter on the subject.

Colin

Colin,

This subject gives me a headache too but I want (need) to see what is happening daily with USD, GBP, Euro, Piso even Ringgit. All I do is check my currency converter chart in \'My Yahoo\'. Very simple to set up & pretty accurate. It is set as a grid, 5 down & 5 across so this way I can see how each is performing against the others.
Title: Re: A quick question re pounds or euros
Post by: on June 11, 2008, 08:39:47 AM
Colin, think of it this way, currently the pound and euro are appreciating and the USD is depreciating, if a money exchanger takes in pounds or euro today and cashes them in tomorrow he may get a better return than say today, however if he takes in Dollars the way the dollar is deprciating, it may be worth less tomorrow, is that right ben?

The GBP was at over 2 to the USD a few months back. It is now around 1.97. I believe that is depreciating. The Euro has been fairing much better going from 1.30 to 1.55ish lately. The USD is currently over 44 to the Piso. The highest it has been for some time

I am still confused, that\'s why I would like to find some simple reading matter on the subject.

Colin

Colin,

This subject gives me a headache too but I want (need) to see what is happening daily with USD, GBP, Euro, Piso even Ringgit. All I do is check my currency converter chart in \'My Yahoo\'. Very simple to set up & pretty accurate. It is set as a grid, 5 down & 5 across so this way I can see how each is performing against the others.

Keith, while it is important to know what is happening, I would like to know why it is happening. When I first visited the Philippines 20 years ago I was getting P37=£1 it recently went to nearly 3 times that amount. What happened to in that period to reduce the Philippine economy to 1/3 of its value? In the last few months it increased by around 20% and has now dropped back about 10% (very approximately). I don\'t expect to be able to understand the world economy, but as similar changes are occuring with the $, I assume the main problem is within the Philippines. It would be nice to have even a vague understanding as to what the Philippines is doing wrong.

Colin
Title: Re: A quick question re pounds or euros
Post by: on June 11, 2008, 09:22:07 AM
What is presently \"wrong\" is, the RP Government is borrowing from abroad to pay for the Government freebies for the poor that makes up the majority of the population of the Country. A short term fix that will lead to a long term major problem as the world is turning these days. 

Apparently, at present, a guide line is a guess-by-golly thingie when it comes to the exchange of currencies, at lease for us novices? History is just that and may not provide a todays trend?

A situation I find myself in! Do I reinvest interest earned or what and where  ??? ??? As always, to put money underground in the Northern 40 is a looser for sure!
B-Ray
Title: Re: A quick question re pounds or euros
Post by: Manila Cockney on June 12, 2008, 11:10:11 AM


I am still confused, that\'s why I would like to find some simple reading matter on the subject.

Colin


Colin,

Its all about supply and demand caused by various factors such as imports, exports, investments, overseas remittances, speculation etc. Interest rates has a direct effect on the currency. The FX dealers have a significant effect on the markets as they spend their day speculating by small percentage points going long and short on the currencies. There is also Central Bank interference. The Philippine Central Bank tries to keep the currency stable so recently has been selling some of its dollar reserve.  In 1997 when the peso was pegged to a basket of currencies, its spent most of its reserves but lost to the speculators.  Other countries have managed to keep their currency pegged such s Hong Kong. Maggie Thatcher use to say eventually pegs will not work and currencies will go to its true value. A point taken when the pound took a significant crash against the dollar back in the early nineties. However, the creation of the Euro is effectively a peg of currencies between DM, FF, Lire etc. and has been working with success. It does though restrict the individual countries economic policies.

 

I search for something for you to read, this was about the best I could find.

http://economics.about.com/cs/money/l/aa022703a.htm

A Beginner\'s Guide to Exchange Rates and the Foreign Exchange Market
 
Title: Re: A quick question re pounds or euros
Post by: on June 12, 2008, 11:18:24 AM


I am still confused, that\'s why I would like to find some simple reading matter on the subject.

Colin


Colin,

Its all about supply and demand caused by various factors such as imports, exports, investments, overseas remittances, speculation etc. Interest rates has a direct effect on the currency. The FX dealers have a significant effect on the markets as they spend their day speculating by small percentage points going long and short on the currencies. There is also Central Bank interference. The Philippine Central Bank tries to keep the currency stable so recently has been selling some of its dollar reserve.  In 1997 when the peso was pegged to a basket of currencies, its spent most of its reserves but lost to the speculators.  Other countries have managed to keep their currency pegged such s Hong Kong. Maggie Thatcher use to say eventually pegs will not work and currencies will go to its true value. A point taken when the pound took a significant crash against the dollar back in the early nineties. However, the creation of the Euro is effectively a peg of currencies between DM, FF, Lire etc. and has been working with success. It does though restrict the individual countries economic policies.

 

I search for something for you to read, this was about the best I could find.

[url]http://economics.about.com/cs/money/l/aa022703a.htm[/url]

A Beginner\'s Guide to Exchange Rates and the Foreign Exchange Market
 


Thanks for the reference MC, I will now take a look.

Colin
Title: Re: A quick question re pounds or euros
Post by: on June 14, 2008, 01:27:08 AM
That beginners guide was helpful but when they start talking about arbitrage and transivity, etc. I\'m lost. Of course I once had a math teacher who said he would pass me as long as I promised never to take another math course. :)
Title: Re: A quick question re pounds or euros
Post by: on June 14, 2008, 06:37:59 AM
That beginners guide was helpful but when they start talking about arbitrage and transivity, etc. I\'m lost. Of course I once had a math teacher who said he would pass me as long as I promised never to take another math course. :)

I read the first part and also found it helpful, it gave me a vague understanding of the system. I did not get to the arbitrage and transivity, but not too sure that I want to now  ;D ;D ;D

Colin
Title: Re: A quick question re pounds or euros
Post by: Manila Cockney on June 14, 2008, 09:59:22 AM
That beginners guide was helpful but when they start talking about arbitrage and transivity, etc. I\'m lost. Of course I once had a math teacher who said he would pass me as long as I promised never to take another math course. :)

I read the first part and found it and also found it helpful, it gave me a vague understanding of the system. I did not get to the arbitrage and transivity, but not too sure that I want to now  ;D ;D ;D

Colin

Arbitrage is really quite simple. Suppose you go to the money changer and GBP/USD = 2, USD/PHP =45. You would expect GBP/PHP to be 90. If for instance though it was 95, for GBP100 you could buy PHP9500. With the PHP9500 you buy dollars which gives you  USD211. From the dollars you will buy back the pounds giving you GBP105.5. making a profit of GBP5.50. In practice this will not happen as GBP/USD changes the GBP/PHP will change with it so the GBP/PHP will be 90. The peso in the financial markets, like most currencies  only trades against one currency the dollar. The GBP/PHP is a considered a cross currency meaning to get the rate the bank does the following calculation GBP/USD (2) x USD/PHP(45) =90.  This is simplified as for each currency the bank has two rates the buy rate and sell rate.

The FX traders trade to the 4th decimal point of a currency called pips. Sometimes for a very quick moment in the trading there may be an arbitrage situation say between, Dollar, Euro and Pound. It does not last long, given the sophisticated computers,  before the arbitrageur will come in and synchronise it all.

What is the relevance to us in Philippines, not a lot except the fact that it would not make any difference if the peso traded against the dollar only or against many currencies as arbitrage will always keep them in synch. The one thing to keep in mind that even though the peso has been quite volatile against the dollar in the last few years, it is generally less volatile against the dollar as other currencies. This because of the volatility between the major currencies and is why in the last few years you have seen the pound vary so much against the peso.