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Buying or selling my currency

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Buying or selling my currency

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
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  • September 8, 2022 at 12:04 pm #665746
    jbishop2019
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    I can’t get my head around this. What determines whether I sell my currency or whether I’m buying the foreign currency. So example is in 4 months time I need to pay $5m. Would I be selling GBP at the sell rate to effectively get dollars, or would I be buying $ at the buy rate? Is it whichever rate is the worst for me? I’m so confused

    September 8, 2022 at 4:58 pm #665774
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54674
    • ☆☆☆☆☆

    It depends which way round the exchange rate is quoted.

    I suggest that you watch the first of my free lectures on foreign exchange risk management where I spend time explaining what rates to use.

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