Originally posted by nastyking I meant something different
Would you exchange it to EUR or keep the USD and wait for better times?
I'd exchange it immediately. The USD is still falling, and since it doesn't seem the deficit will get fixed any time soon, it will probably continue to fall.
I have a similar problem. I'm not sure if I should exchange my dollars now or wait. Some say the exchange rate will get better, some say it will get worse...
Originally posted by nastyking Let's say you live in Europe and have 50 0000 USD
What would you do?
buy Europe. hehehe
i'll probably spend half of it while touring the continent
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As others have said change it unless I can find a way to invest it in the US and afford to wait several years. As it stands there's likely to be no improvement in the exchange rates anytime soon so best to cut your losses now.
Go to the U.S. or to states where USD has good value and enjoy part of the money there.
In U.S. you can buy very cheap electronics compared to EU, etc..
Or, make an account in USD in your EU bank and leave the money there, get a credit card for the account and buy through the net. It's good for investment in U.S. as well.
I think I'd do all the above with 25k, the rest would be exchanged to EUR and finally I'd have bike I dream of. :-)
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I did some quick research to find out how bad it could get... One of the worst times for the $'s value outside the US was the early 1970s with the oil crisis.
The EU currency didn't exist then but GBP did of course. So going on the current conversion rates from GBP to EU I worked out what the $ would be worth in EU's if they existed and were the same conversion rate from GBP to EU's today. For the rates for the 9th of Nov. 1971. It came out as 1 EU would buy you 1.72 USD (or if you prefer $1 would get you 0.58 EU). All figures apx of course as the EU didn't exist then.
If anyones interested that's equivalent to 1 GBP = 2.49 USD or 1 USD gets you 40 UK pence.
I guess we have a little way to go yet with an EU currently buying 1.29 - but if it goes there that will be very "interesting"... That wasn't the worst either - it's just one I picked from that time because it was todays date and a bad year.
People ought to have contingency for this just in case... since this appears to be Bush's "policy".
So I guess given all the above I'd probably either go to the US and spend the 50k having a good time or investing in something over there... or cash it in and take a hit on the bad conversion on the assumption it could get plenty worse yet and probably will...
DISCLAIMER: Apologies if any of my math is wrong but I don't think it is. Sources for conversions: Oanda's FXHistory.
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