Changing Money From euros to dollars

Page 1 of 212>
March 13th, 2015 at 4:48:51 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 634
Posts: 7220
You may notice that the dollar is on a tear lately. Lithuania formerly adopted the euro 10 weeks ago, and is still circulating both currencies at the same time. In that 10 weeks the Euro has lost 12.85% against the dollar, and is down from $1.40 to $1.05 since last year.

This young Lithuanian kid got an internship in Bethlehem PA (90 miles from NYC) and his relatives have loaded him up with tens of thousands of euros to turn into dollars. The problem in a small town is that banks don't deal with FOREX and the fees are huge (maybe 10%).

I am unfamiliar with exchanging large amounts of cash. I took cash to London 40 years ago, but since then I have always pulled money from the ATM. Are there places in NYC where you can get a good rate.

What are the best tricks for carrying around a lot of cash.
March 13th, 2015 at 6:20:22 AM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 95
Posts: 5601
How far is he from Philly?

Reason I ask is when I was at Chase I worked next to a guy who was going to Europe. They did an exchange he had to wait a day or two for them to get the amount of Euros he needed. So if the kid has an account with a big bank they might do a better rate. He just might have to go to a larger branch in town.

They used to have exchanges in some larger airports but the fee is probably going to be 5-10%. He might also ask the bank for a break in the rate if he is exchanging say more than E$1,000.

A final option is find a private party. Try craigslist and find a tourist going to Europe, maybe a US Serviceman deploying there. Obviously this can be very dangerous and should be done in a public place with less than the full amount in multiple transactions plus bring a buddy or three. But it is a thought. Just check the rate and agree on a price.
The man who damns money has obtained it dishonorably; the man who respects it has earned it
March 13th, 2015 at 8:03:11 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 634
Posts: 7220
Quote: AZDuffman
So if the kid has an account with a big bank they might do a better rate.


I don't think he has a bank account.



The Lithuanian lita was introduced on 25 June 1993 when the Soviet Union broke up and pegged to the 1 lita = US quarter. So the largest banknote, the 500 lita, was worth US$125.

On 28 June 2004 the lita was pegged to the Euro at the rate of 3.45280 to the euro which would have made the banknote worth 144.81 euros. Which would be equivalent to an exchange rate of 4/3.4528 =US $1.158 to one Euro.

The euro peaked at US$1.6038 on 18 July 2008 which means their largest banknote would have been worth $232. When they changed over to the Euro ten weeks ago the 500 lita banknote was worth $176 . Today, it is worth $153 and falling.

I wouldn't be shocked if his friends were turning their litas into Euros, and putting 50-100 Euro notes in between pieces of cardboard and mailing the banknotes to him.
March 13th, 2015 at 3:37:32 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 101
Posts: 9761
Great time to visit Eur, bad time for them
to visit us. Bad time for US corp's doing
business in Eur.
If you take a risk, you may lose. If you never take a risk, you will always lose.
March 13th, 2015 at 3:43:04 PM permalink
Nareed
Member since: Oct 24, 2012
Threads: 301
Posts: 9724
You know in all my many trips to the US I've never exchanged money there? Not once. I always bring USD with me, and credit cards.

In Mexico the preferred way to exchange money is at dedicated exchange houses. There are all kinds, from literal cubby-holes in the wall with a safe, to some as large as a bank branch. Typically they offer a better rate (there are no commissions, just differentiated buy/sell rates). Banks do exchange money also.

Most places deal almost exclusively with USD and Euros, with some Pounds Sterling, Canadian money and Yen for seasoning. At the airport, though, there are so many exchange businesses that some will take anything. I one saw someone selling Chilean money.
If Trump where half as smart as he thinks he is, he'd be twice as smart as he really is.
March 13th, 2015 at 4:21:11 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 634
Posts: 7220
Quote: Nareed
You know in all my many trips to the US I've never exchanged money there? Not once. I always bring USD with me, and credit cards.


Well, the Lithuanian young man is worried about the value of his money since it has lost a third of it's value in the past 6.5 years. But it will probably never go as low as it was for the first eleven years of the existence of the Lita.

The 500 lita banknote worth
$125 - 25 June 1993
145 - 28 June 2004
$232 - 18 July 2008
$176 - 1 Jan 2015 (conversion to euro begins)
$153 - today

In comparison the Mexican peso has lost 80% of its value relative to the dollar

The 100 peso note, was worth
$33.33 - July 31, 1992
$6.50 - today

Senator Connie MACK, III, two term Republican Senator for Florida (January 3, 1989, to January 3, 2001) tried to pass a bill that said (simplified version), the US should give any Latin American country enough US banknotes to replace their currency, and replace their banknotes, and if they are vigilant in protection against laundering drug money, even pay them a yearly stipend. In exchange the finances of the Americas would be more stable, and the US will have better trade partners.
March 13th, 2015 at 7:12:56 PM permalink
Nareed
Member since: Oct 24, 2012
Threads: 301
Posts: 9724
Quote: Pacomartin
In comparison the Mexican peso has lost 80% of its value relative to the dollar


In 1976 you could buy a dollar for 12.50 pesos. By 1992 a dollar set you back 3,300 pesos. In 1993 monetary reform removed 3 zeroes from the currency, so the dollar that year went for 3.50 pesos. Now it's at about 15.50 per dollar. If we re-add the 3 zeros, it's 15,500

1976 12.50
2015 15,500

That's close to thirty years. How much value has been lost?
If Trump where half as smart as he thinks he is, he'd be twice as smart as he really is.
March 13th, 2015 at 8:23:16 PM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 95
Posts: 5601
Quote: Evenbob
Great time to visit Eur, bad time for them
to visit us. Bad time for US corp's doing
business in Eur.


And in 5-7 years it will just flip back again. I'm going to wait until late summer then move some of my investments to Euro mutual funds. The low Euro will mean they make money from exports then when the Euro gets stronger I will get the currency bump.
The man who damns money has obtained it dishonorably; the man who respects it has earned it
March 13th, 2015 at 9:32:02 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 101
Posts: 9761
Quote: Nareed
Now it's at about 15.50 per dollar.


Money value comparisons are always confusing.
Does this mean I can buy a bottle of name brand
beer in Mexico for 15 times less than I pay here?
I doubt this is true. A $3 beer would be 20 cents.
If you take a risk, you may lose. If you never take a risk, you will always lose.
March 14th, 2015 at 3:27:57 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 634
Posts: 7220
Quote: Evenbob
Does this mean I can buy a bottle of name brand
beer in Mexico for 15 times less than I pay here?
I doubt this is true. A $3 beer would be 20 cents.


From 1871 the Japanese yen was worth a dollar, but by 1897 to was down to about 50 cents. It was worth about 30 cents up until WWII when it started to fall. After WWII it was fixed at ¥360 = $1 (from 1949-1971). It peaked at ¥85 = $1 in the mid 1990's. Today it is ¥121 = $1.

So there is always people dealing in currencies outside of their home country. If a bottle of rice wine was $1 in 1871 it doesn't mean that you could necessarily buy 360 bottles of rice wine after WWII for a dollar.


The Canadian dollar was one of the few currencies permitted to float after WWII, but it was fixed at US$0.925 from 1962 until 1970. As an inflation-fighting measure, the Canadian dollar was allowed to float in 1970.

It appreciated until he high point was on April 25, 1974, when it reached US$1.0443. In November 25, 1976 it fell below the dollar hitting an all time low US$0.6179 US on January 21, 2002. In September 20, 2007 it met the U.S. dollar at parity for the first time since November 25, 1976. On November 7, 2007, it hit US$1.1024 during trading, a modern-day high.

Today the CAD$1= US$0.78662 which means that the boom in Canadian tourist to USA should come to a halt.
Page 1 of 212>