Forum Archive Index - November 2003

[mixtrader <mixtrader@clear.net.nz>]

Hi Alan

 

I might be that I am mis-interpreting your query so before I try and answer fully can I pose a scenario and see if that is what you are attempting

 

Say purchase shares on ASX at a total value (including brokerage) of $A100.

 

That is equivalent to $NZ115.26 (at current 0.8676 exchange rate) so you are paying $115.26 from NZ to purchase your parcel on ASX

 

Later sell that parcel on ASX at net $A120

 

This represents a 20% gain for the holding period (your tidy profit)

 

Transfer those funds to NZ domiciled account, represents $NZ138.31 (assuming no variation to exchange rate), the same 20% gain as reflected by the gross in $A.

 

If there has been a divergence in exchange rates over the period (ie NZ$ buys 1 $Aus) much of your gain is lost (ie getting 120 back for 115 invested) but there hasn't been that much movement between the currencies that I can think of lately

 

The only other variation I can think of is the difference between the buy rate and the sell rate for each currency as you make transactions.

 

Is this the type of problem you are faced with or have I missed the boat?

----- Original Message -----

From: Russell

To: sharechat

Sent: Friday, November 07, 2003 4:53 PM

Subject: [sharechat] A$ to NZ$ exchange rates

 

Could any one please help on this one, I can look up the exchange rate as well as any one else, but where I fall down is buying or selling on aux or nzx with $ visa versa.

One day I saw a tidy profit in $A wiped out simply by putting the money in a NZ account. Obviously profits can be enhanced and losses minimized by "doing it right" at present my method is  hit or miss, hands off no control [i.e. not right].

I contacted the bank as I thought they were charging an exchange rate , they don't.

I need a programe that not only does the exchange rate but one that will indicate from a benchmark, if I am trying to swim up hill or not.

Or maybe I just need to understand better what I'm doing, for some reason its just not that obvious [at the moment].  

 

Many Thanks

 

Allan.