Exchange rates and leaving HK

mr nobody · 29-07-2011, 09:55 AM

Say you've worked in HK for a number of years...6 or so...and you have a fairly large amount of money in a HK HSBC account...but you are moving back to your home country...what would be the best way to get the most out of exchange rates? I am a premier user...but the exchange rate is about 8.5 these days compared to 6.9/ 7 when I got here. I'd be losing thousands of dollars in exchange.

Is that just the way she goes? Or should I keep the large % of $ in the the HSBC account in HK and wait for a better exchange rate? Shoyuld I exchange it all now...maybe the exchange rate will just get worse?

I keep hearing that there will be a global financial crisis in August 2011...what does that mean for exchange rates?

thanks

Morrison · 29-07-2011, 10:27 AM

If you don't mention the currencies involved it will be hard to give you proper advice.
The exchange rate is linked to the two economies involved.

mr nobody · 29-07-2011, 01:25 PM

Oh...my hsbc bank is in HK dollars....I will be moving to Canada...so CAD.

HKD - CAD

Say you have Hong Kong dollars...which is tied to the American dollar...and the American economy crashes...the HK dollar crashes also?

If the Canadian dollar doesn't crash as much...is there a chance of exchanging the HK dollars to Canadian dollars at a good exchange rate?

The exchange rate now is something like $1 Canadian = $8HK

So you have to make 8 HK dollars to make 1 Canadian dollar...

If there is a crash...any chance of say 5 or 6 HK dollars to 1 Canadian dollar??

aliendavid1 · 29-07-2011, 01:35 PM

I would recommend using some online forex trading platforms like fxcm and others to exchange large amounts of currency. That way you get the best rates to the market as these are what professional traders are using.

or if you want to be adverterous buy a couple bricks of gold and bring them on your flight then convert them back to AUD when you get there or get there.

Other then that you can go the conventional way and wait for the currency to get more favorable, but the HKD is pegged to the USD so it might be a long long time.

Ramdom · 29-07-2011, 01:37 PM

Let me have look into my crystal ball.

mr nobody · 29-07-2011, 05:08 PM

So if the US dollar gets worse...which is what it seems every man and his dog is seeing in their crystal balls, Ramdom, then my exchange rate will get worse?

But what about in the 2008 economic crisis...wasn't that a US downturn? I recall in that period my exchange rate became much more favourable...$5 instead of $8...

Morrison · 29-07-2011, 06:15 PM

back then US$ was perceived as comparatively safe as it was a global crisis.
I would say wait until the $ stages a reasonable short term survival and then change into CAN$.

mr nobody · 29-07-2011, 06:25 PM

Originally Posted by Morrison:

back then US$ was perceived as comparatively safe as it was a global crisis.
I would say wait until the $ stages a reasonable short term survival and then change into CAN$.

Can you tell me what you mean by that exactly...?

aliendavid1 · 29-07-2011, 06:41 PM

Originally Posted by mr nobody:

Can you tell me what you mean by that exactly...?

I think he means as long as the U.S. keeps on printing money QE3 or spending (raising debt ceiling, not cutting spending) then he will be buying Canadian Dollars to hedge his currency risk.

Laksa Girl · 29-07-2011, 07:14 PM

If the CAD continues to strengthen, then you will receive less CAD when exchanging with HKD. So the speculation is really about the strength of the CAD against the HKD. This website has free news, historical rates and currency conversion tools which might be useful:

XE.com - Forex News: CAD - Foreign Exchange

In terms of exchanging currency for CAD, you will receive a slightly better buy rate for CAD in Hong Kong than in Canada. You can compare this yourself by looking at the foreign exchange calculators of major banks in each country. So say, HSBC (Hong Kong site) and TD Canada Trust (Canada site).

Citibank's (and I am sure HSBC also) personal online banking system is capable of providing global view. You can keep multiple currencies and accounts opened in different countries under the one customer login, and then transfer between accounts (at the same time converting currency) when it suits you. There are fees usually.

If the CAD crashes with the USD, you will be in a good position - it will weaken (currency conversion will be at less than $8, you will receive more CAD for every HKD). If it strengthens further still, well - that's the gamble.