2006-09-21 00:55:49 · 18 answers · asked by msfy1306 2 in Travel ➔ United Kingdom ➔ Manchester
By the number of people that have got this completely ar$e about face, this would seem to be an excellent question.
I don't think I can put it any more clearly than some of the others before me...
£500 converted into Euro @ €1.40 = £1 gives you 700 Euro in your pocket.
You don't spend any, so you go back to the travel agent (or whatever) and they give you £1 for every €1.55 that you hand to them.
700 / (divided by) 1.55 = £451.61
You had £500, and now you have £451.61 - you have lost!
It is this difference between buying and selling rates that makes so much money for banks and bureaux de change, and that is how they can afford to lure you in by saying that they won't charge you any commission. They don't need to charge commission, as they make plenty in the rates!
Sweeping generalisation perhaps, but you will often do better by changing money at your destination, rather than at home. I have found that the cheapest way to buy Euro is to use your bank ATM / servicetill card over there... but that may not be the case if your bank will charge you for the privelege (I use HSBC, and they don't charge). Using a credit card is also a cost-effective way of dealing with payments in foreign currencies.
2006-09-21 01:42:04 · answer #1 · answered by nige_but_dim 4 · 0⤊ 1⤋
here is the correct answer for you
£500 @1.40 = 700 euros
you use 500 pounds and you get 700 euros
Now when you sell the 700 euros at 1.55 then it is like this
700 divide by 1.55 = £451.61
Initial amount 500 pounds - 451.61(final amount) = 48.39 (Loss)
Therefore you make a loss of 48.39 Pounds
2006-09-21 08:05:03 · answer #2 · answered by Peddy 3 · 2⤊ 1⤋
you would get back £451.
£500 x 1.4 = 700 Euros
700 Euros / 1.55 = £451
Thus you lose £49
2006-09-21 08:02:49 · answer #3 · answered by Simon E 2 · 2⤊ 1⤋
I will sell you £500 of Euros at 1.4 to the pound, and then buy them back of you , so in effect you sell them back to me at 1.55, ie for every 1.55 euro you give me i give you £1
2006-09-21 08:03:51 · answer #4 · answered by D 5 · 0⤊ 2⤋
Loseing around GBP 49.39
wait for a better exchange rate
Look, you are not gaining!!
GBP 500.00 @ 1.40 = Euro 700
Euro 700 @ 1.55 = GBP 451.61
Euros are not as strong against the pound when selling as they were when buying
2006-09-21 07:58:10 · answer #5 · answered by rusty_2003uk 3 · 1⤊ 2⤋
Gaining pounds as you're getting the euros bought from you for a higher rate than you purchased them at.
2006-09-21 07:57:28 · answer #6 · answered by AngelWings 3 · 2⤊ 1⤋
You have £500.
You buy 500x1.40 whichis 700euros.
You buy pounds back at 1.55euros per pound
So 700 euros is worth £451.60.
You lose.
There are people out there who would love to do business with you.Beware!
2006-09-21 08:08:21 · answer #7 · answered by anthony e 2 · 2⤊ 1⤋
Gaining
2006-09-21 07:57:04 · answer #8 · answered by A True Gentleman 5 · 2⤊ 2⤋
I am sorry I gave the wrong info before I apologize being pregnant sometimes causes brain farts... you would be losing
£500*1.4=700
£500/1.55=322.58
you go opposite when converting money back... my bad....
2006-09-21 08:05:31 · answer #9 · answered by autbrat 2 · 0⤊ 2⤋
as long as it is 1.55 £per euro you are gaining, if the other way around, definitely loosing.
2006-09-21 08:03:59 · answer #10 · answered by Caam 2 · 1⤊ 2⤋