Foreign Exchange Risk Management: Exchange rates

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Comments

  1. Avatar of hssniqbl hssniqbl says:
    May 21, 2013 at 4:46 pm

    I think the easy way to remember is to think that we will always be at loss. So we choose the rate which costs us more or gives us less.. Is this okay?

  2. Avatar of garygood garygood says:
    April 8, 2013 at 9:36 pm

    Sorry I forgot to add that usually all currencies are quoted against USD except the “Queen’s curriencies” i.e. GBP, AUSD, NZD etc. and also the Euro that are quoted as base currencies therefore instead of $/£ (as shown in the example) we would have GBPUSD (£/$) pair – therefore it would correctly be 1.6 USD for every 1 GBP.

    I think. But I could be wrong.

  3. Avatar of garygood garygood says:
    April 8, 2013 at 8:01 pm

    I’ve read everywhere else that the currency quotes are always: 1 of base currency (i.e. $ in this case) to however much of the counter currency (i.e £1.6 in the above example). Here the lecturer says it is the other way around.

    Forgive me but am I missing something?

    • Avatar of johnmoffat johnmoffat says:
      April 9, 2013 at 8:35 am

      The lecture makes it clear and is correct.
      In practice there are always 2 ways of quoting exchange rates – there is no ‘official’ way of quoting them (even though most quote against their own currency.

      However in the exam, if it is (for example) a $/£ quote, then it is giving the number of $’s that equal 1 £
      Similarly if it is a EUR/$ quote, then it is giving the number of EUR that equal 1 $

      I am only concerned about helping people to pass the exam, and in the exam the quotes are always as above (and as per the lecture) unless, obviously, you are told different.

  4. Avatar of ocys ocys says:
    February 23, 2013 at 6:36 pm

    this video might just do the trick to finally understand foreign exchange

  5. Avatar of baygaliya baygaliya says:
    November 18, 2012 at 7:43 am

    thank you for the lecture, so easy to understand and to apply the knowledge

  6. Avatar of ignatius001 ignatius001 says:
    October 17, 2012 at 5:43 am

    Awesome, I now totally understand it. I used to mix up the buying and selling rates between the bank and customer. It has been ironed out. Thanks O.T

  7. Avatar of nailya1908 nailya1908 says:
    May 25, 2012 at 6:01 pm

    Wowww Thank you so much for your work!!

  8. Avatar of nengibob nengibob says:
    May 24, 2012 at 2:39 pm

    Really nice. definitely got it now.

  9. Avatar of waleedpecian waleedpecian says:
    May 22, 2012 at 10:15 pm

    This is a great lecture. I am now very much clear about the concept of buyinh and selling rates and how to use them…
    Thanks.

  10. Avatar of simelanempumie simelanempumie says:
    May 18, 2012 at 11:47 pm

    Thanks for the tips. It is clearer now. Great Lecture

  11. Avatar of kerry kerry says:
    December 4, 2011 at 1:25 am

    Now the home,base and cross currency that I have learnt is much clearer. Until this I couldn’t get it right. Thanks

  12. Avatar of timg timg says:
    November 6, 2011 at 2:42 pm

    You really only get the beauty of this presentation when you have had to reverse engineer how some of the text books present this…

  13. Avatar of zaneta zaneta says:
    October 23, 2011 at 10:24 pm

    These letures on Chapter 17 are great! I watched all of them and they helped me enormously, so a HUGE thank you to Open Tuition!!!

  14. Avatar of mwachilale mwachilale says:
    October 19, 2011 at 6:19 pm

    You have ironed out the common errors that I have been making when converting the currencies.

  15. Avatar of oseidarko oseidarko says:
    May 6, 2011 at 3:11 pm

    Wow! What can I say? I just love it.
    Willie.

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