Currency Risk.
What is Currency Risk?
Why should you take currency risk seriously when exchanging one currency for another?
Let’s take the example of a client transferring 100,000 GBP (Great British Pounds) into AUD
(Australian Dollars) in March ‘06. If the transaction was done towards the beginning of the month (a
rate of 2.3663) this would have bought 236,630 AUD, however, towards the end of the month (at a
rate of 2.5147) the same transaction would have netted 251,470 AUD. That is a difference of 6% or
$14,840 AUD!*
( * Prices shown are interbank or wholesale rates that will not be offered to you by HIFX. For a live
quotation please speak
to an HIFX Dealer or Consultant on (02) 9251 2626.)
If you are buying property or moving money overseas and would like to know how you can protect
yourself from the fluctuations of the foreign exchange market and also save money on the exchange
rate call Hamish Thomson at HiFX on +61 2 9251 2626 or email him at hamish.thomson@hifx.com.au
