sho rtage on australian dollars????

[megmor]

Hi everyone just been to our local town in stoke on trent,and i have found it very hard to get some au dollars,m&s at 2.35aud havernt any,they said there is a shortage so i went to 4 other travel agents they said the same. In the end got some at 2.21 but they matched m&s with traveller checks.Does this mean the rate is going to drop soon ? or alot of people are emirating from stoke on trent???? :nah: from ian,paula chris,meg,morgan

[Guest reefcoop]

I can't say I can answer your question with any certainty but I will do my best and explain the reasons why.

 

First avoid the high street except as a guide when changing currency unless you only need a very small amount, your post is evidence that their rates are too low.

 

All last week the AUD $ was falling against most other currencies (good news for those of us converting into it ready for moving over there). Stock market & interest rates on loans were the biggest cause of this, to understand more you can read this article from the end of the week by clicking here or paste the link below

 

AFP: Plunging Australian dollar near five-year low

 

Suffice it to say the AUD $ dropped (in our favour) 14% last week alone to a 5 year low. In fact the monthly average interbank rates that were pretty flat for May, June & July this year mean that you would have got roughly 28% more for your pound if you had changed money at the peak on Friday late afternoon.

 

After the weekend rates began to drop (for us) as the AUD $ gained value in large part due to both Britain and the US confirming banking rescue plans which caused stock markets to rally around the world. Again if you want to understand the reason more, you can read this article from Monday morning.

 

As of right now rates have been rising (in our favour all day) around 2.55 as I write this (meaning a good forex company should give you around 2.52 and above depending how much you are changing).

 

This is as good as it was around midday Friday before it hit it's peak (for us) Friday afternoon. Current rates have not been this good since Feb 07. To get a month where the average hit the high of Friday afternoon (around 2.66) you have to go back to June of 2004.

 

In direct response to whether Australian dollars are running out. It may well be that stocks are a little low from last weeks frenzies, but it is more likely that banks just don't have that much stock, especially because of recent exchange rate fluctuations, also peak Australian tourist season is yet to start.

 

As to whether they will drop (against us) it is quite likely, this has already happened this week. They may even out they may not, but again I would say that now is still one of the best times to buy if you haven't already.

 

Even better most forex companies will let you fix a rate based on today's rates for a up to 2 years ahead (6 months with some). So if you have money from liquidating assets in the UK that you won't have for weeks or months, you can still benefit from current high rates.

 

A note on the rates you got on the high street. I think they were very low ... rates are fixed for the day, whereas rates often improve over the day. There are lots of good places to order online the Post Office is normally very competitive (though I think today's rates of 2.34 are low), no commission and delivery free to your door of anything over £500. Interchange FX 'guarantee' to beat any other quote, and are offering 2.45 right now on cash, though you need to order at least £1000 to avoid £6 delivery charge. I also find them a good place for monitoring the rates live, they are updated every 60 seconds.

 

Again to show emphasise low high street rates are Visa Card rates for today are 2.44 (again a fraction lower than Friday after gains today). This is fixed for the whole day, and if you are using a Nationwide, Abbey Zero or Post Office credit card you pay no handling fee, so that is the rate you see on your statement. This is also the rate you would get on a Nationwide debit card when withdrawing cash from a hole in the wall as they also charge you no fee. (Most cards charge 2.25 - 2.75% for use abroad, you never see it just a lower exchange rate). Personally just for holidays, research trips etc, I never change money before hand unless I have had time to order it online. Cards with no fees will always give you better rates than physical exchange outlets. I just wait til I arrive and use my debit card to get whatever cash I need, but put most things on a card, less risk than carrying cash.

 

I think that historically you should be happy with anything above 2.4, but aiming for at least 2.5. Obviously the more you are changing the more difference it makes. I exchanged £16000 on Friday with a forex company, I didn't get the high of the day, but did get more than $7000 AUD more for my money than I would have for most of the summer months. I messed up and didn't fix a rate before the weekend, but will probably fix a rate today for other assets that I will have cash for in a few months time, as rates have been rising back to Fridays levels. For those selling houses there is a massive benefit in the rates right now.

 

Others have posted about forex companies in recent days so I won't bother. Some have said that it is best to wait until later in the day to exchange currency, this seems to hold true but I wouldn't risk it if you see a rate you are happy with, but it only applies online really where companies adjust their rates throughout the day which isn't normally done on the high street.

 

Sorry this has been so long ... hope it is of help to someone

[Guest fergie family]

Hi

 

I went into the post office at lunch time today to get some dollars for my nephews birthday, I normally just send this in his birthday card. Anyway the girl at the desk told me there is not a lot of Australian Dollars about she did not have any and she said that most places have ran out already. The reason she gave me is that the Australian Government has stopped anyone from sending money into Australia because of the credit crunch. Transfering money is different it is just that you cant buy cash to send over.

 

Susan