Tag Archives: foreign exchange

Foreign Exchange Money Tips

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Foreign Exchange
American travelers abroad this winter will have to use greater judgment than heretofore in the exchanging and spending of money, for the fall of the dollar has been to the disadvantage of the tourist. In the past few seasons, the American traveler has reaped the benefit derived from the exchange of his dollars for the depreciated currencies in several countries. But the tables have been turned in a number of countries, and the American traveler accordingly finds himself paying considerably more than he did a year or two ago.

This increase holds in Great Britain, France, Germany, Italy, Belgium, Holland and Switzerland. The exchange rate of a number of currencies, however, is still below par, thus favoring the American tourist, even tho at a lesser degree than heretofore. This is true for Spain, Japan, Mexico and South American countries.

Travelers should exercise care in making the exchange from dollars into foreign currencies. This should be done whenever possible at banks and offices of reliable travel agencies and not at hotels or shops unless the official rate of the day is allowed in the exchange.

Tourists should carry their funds in travelers’ checks, if the amount is relatively small, and in letters of credit, if large. These may be purchased from banks, large travel agencies, and steamship companies. Travelers’ checks come in check form, in denominations of $10, $20, $50 or $100, and are signed by the buyer at the time of purchase and countersigned when cashed. They are protected against fraud.

The currencies of most European and some other nations with the value at par in United States money and recent rates of exchange, are given in the following table. Readers are warned that rates of exchange have been fluctuating greatly and the table is given only to show the rate of the first of December.

The following currencies are quoted in dollars and cents. (Par values are indicated in parentheses) :
Great Britain ($4.860 a sovereign) $5.17
Australia ($4.86% a sovereign) 4.13
New Zealand ($4.860 a sovereign) 4.16
South Africa ($4.860 a sovereign) 5.20

The following currencies are quoted in cents and decimals of a cent:
France (3.9179c. a franc) 6.14
Germany (23.82c. a mark) 37.55
Italy (5.263c. a lira) 8.24
Belgium (13.904c. a belga) 21.85
Austria (14.0713c. a schilling) 17.75
Holland (40.1959c. a florin) 63.15
Switzerland (19.295c. a franc) 30.36
Greece (1.2977c. a drachma) .91
Portugal (4.4241c. an escudo) 4.80
Spain (19.295c. a peseta) 12.86
China (cents for silver dollars)
Shanghai dollars 34.06
Hongkong dollars 37.60
Japan (49.85c. a yen) 30.94
India (36.50c. a rupee) 38.94
Java (40.20c. a florin) 63.50
Philippine Islands (50c. a silver peso) 49.81
Straits Settlements (56.78c. a dollar) 61.00
Argentina (52.44c, per paper peso) 34.00
Brazil (11.96c. a paper milreis) 9.00
Chile (12.166c. a gold peso) 10.00
Colombia (97.33c. a gold Peso) 68.50
Peru (28 cents a sol) 23.25
Uruguay ($1.0342 a gold peso) 75.00
Mexico (49.846c. a silver dollar) 27.82
Canada (100 cents on Can, dollar) 101.56

Day by day rates will be found in newspapers and should be consulted during the trip each time money is exchanged.

Source: Literary Digest, December 16 1933

The Rise of Pound Sterling and Franc

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LONDON AND PARIS EXPLAIN THE RISE OF POUND AND FRANC

THE gradual character of the upward movement in the principal European exchanges is less spectacular but, in the opinion of foreign observers, it is more significant than any spasmodic sudden rise would be. Last week the pound went up to $4.36, which is within sight of the par Value of $4.8665. The previous week it had been $4.25, as compared with $3.79 a year before. Likewise, the franc which has been slowly climbing during the last three weeks from .082 to .0841, and on to .0858. shows a marked improvement over the figure of .068, of January 1921. Similar improvement is shown in the Belgian franc and the Italian lira. In Paris, says a New York Times correspondent, it is felt that the most important influence on foreign exchange rates is the apparent ability of the new French Minister of Finance to effect the great economies in the budget which he promises. And we are assured that ‘no apprehension is felt in financial circles here as to the maintenance of satisfactory foreign relations by the Poincare Cabinet.” In explaining the recent rise of sterling in New York, the London financial correspondent of the New York Times gives first place “to the great alteration in favor of Great Britain of the trade balance between England and America.”

As American business men are well aware, the shrinkage in merchandise business between the two countries, both in quantity and value, has been almost sensational, and its result has been immense reduction of the excess of imports. Without this solid basis of improvement in England’s economic position, the other factors alone could not have accomplished the restoration of sterling to the highest rate quoted for two and a half years.

In redeeming such of its external loans as are falling due in America, Great Britain has, we are told, “put one peg in the ladder by which sterling has been climbing.” But the final and most powerful touch has been given by the achievement of the Naval Disarmament Conference. This “has provided a lifting power for international exchange which would be difficult to exaggerate.” The London writer says further:

Nor must one overlook the importance of the progress made toward helping the position of European nations indebted to the United States Treasury through the medium of funding their obligations. This is recognized as a great step forward, inasmuch as it converts what is now a debt payable on demand to long-term obligations, thus definitely removing from the political arena the question in its most awkward form. It is doubtful whether sterling could possibly have risen to its present level but for the naval agreement and the passing of the refunding bill.

Source: Literary Digest, Feb 18 1922