Forum Archive Index - August 2002

["allan potts" <pottsallan@hotmail.com>]

Dear tennyson etc.

I might have some ideas to help your situation, but need to know a little 
more about your situation.  Are you a U.S. investor with US$ or a Kiwi 
investor with US$.  I'm a long time US based Kiwi investor and believe I've 
overcome, at least to my satisfaction, a similar situation.  No magic bullet 
here just a way to cut transaction costs.

pottsallan@hotmail.com


>From: "tennyson@caverock.net.nz" <tennyson@caverock.net.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: sharechat@sharechat.co.nz
>Subject: Re: [sharechat] I am Looking for Cheap US$
>Date: Thu, 1 Aug 2002 17:26:17 +0000
>
>Hi max,
>
> >
> >
> >I try to invest in nz sharemarket, but i have some US$ my problem is
> >when i try to exchange in the bank market they offer me an exchange
> >rate more expensive (commissions included) that i read in the herald
> >news paper. If anyone know what is the best way for exchange my US$.
> >
> >
>
>
>The $NZ/$US exchange rate is fluctuating all the time, so use the
>exchange rate as published in 'The Herald' as a guide only.  Also the
>exchange rate published in the newspapers is the so called 'mid
>rate'.  This is half way between the so called 'buy rate' (the price
>you pay if you wish to purchase overseas currency from a New
>Zealand bank) and the 'sell rate' (the price you get if you wish to
>deposit an overseas currency cheque into a New Zealand bank account).
>
>So whether you are a buyer or seller of currency, you will always do
>worse than the mid rate you see in the paper, assuming the exchange
>rate hasn't moved too far on the day.
>
>So how to 'beat the system'?
>
>Some years ago for 'small' amounts (I think it was under $NZ10,000),
>Countrywide bank had a system whereby you could buy/sell currency at
>the 'morning' rate, irrespective of what the currency had done in the
>time since.   This meant if the dollar had plunged since 9am you
>could buy overseas currency at a better rate from Countrywide Bank
>than my other bank at the time ( I think it was  Trustbank ).
>Effectively I could play off a fixed quote against a floating quote
>and get the best deal!   Unfortunately I don't know any banks that do
>'fixed quotes based on the opening bell price' any more.  If other
>sharechatters do, I'd be interested!
>
>I've been told that Thomas Cook Limited, the international travel
>company, sometimes offer better deals than the banks do on currency
>conversion.  However, I've never tried this myself.  Anyone out there
>had any success with this method?
>
>The other way to beat the bank rake off is to buy a share that is
>listed on the US market *and* the New Zealand market ( FFS, FPH, TEL
>and TLS come to mind ).  Use your $US to buy the shares on the US
>market, then write to the share registry in the USA and get those
>shares shunted over to the New Zealand market register.  When you
>sell them you will have $NZ, and will have paid nothing in currency
>conversion fees to the banks!  Of course, if those shares you
>bought were not the shares you wanted, then this method would incur a
>double brokerage fee which might be worse than doing in all through
>the banks in the first place.  HTH
>
>SNOOPY
>
>
>
>---------------------------------
>Message sent by Snoopy
>e-mail  tennyson@caverock.net.nz
>on Pegasus Mail version 2.55
>----------------------------------
>"Sometimes to see the wood from the trees,
>you have to cut down all the trees."
>
>
>
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