How to Calculate Currency Conversion at Licensed Money Changer?
If you planning to travel overseas, then one of the most important thing is to get the foreigner currency before departure.
Foreigner currency can be done at Bank or Licensed Money Changer. Normally, Licensed Money Changer will gave a better and reasonable rate compare to Bank.
Just do your own research and survey to confirm this. 😀
Money changing is the art of buying and selling foreign currencies. This industry are regulated and Only Licensed Money Changer are authorized by Bank Negara Malaysia to buy and sell foreign currencies.
How to Calculate Currency Conversion at Money Changer?
In this example, I have Ringgit Malaysia(RM) and would like to change Thai Bath(B).
Just look at “We Sell”:
100 Thai Bath = RM10.50
I wanna change RM4,000.00 which is equivalent to B38,095.24
B38,095.24 = (RM4000 / RM10.50) X 100
The money changer ask me to top another RM200 to round the Thai Bath currency to B40,000.00
B40,000.00 = (RM4200 / RM10.50) X 100
** Therefore look for the lowest value of “We Sell” in order to get the Best Rate.
Happy Travelling and Hunting! 😀
Currency strength boosts confidence
PETALING JAYA: The stronger ringgit is bringing cheer to Malaysians eager to squeeze more from their money. In the travel industry, operators are expecting a boom in business because many will want to cash in on the chance to see the world for less.
“And with low-cost carriers offering so many destinations, people will tend to travel more at a relatively cheaper cost,” said Malaysian Association of Tour and Travel Agents (Matta) president Datuk Mohd Khalid Harun.
He recalled that when the Australian dollar was selling at a lower rate (RM2.50 to the dollar) a few years back, there was a big shift of Malaysians going there.
However, he reminded travellers always to get value for their money, because the cheapest travel need not mean the most enjoyable experience.
Writer Foong Chee Yan, 23, who will be going on a business trip to England, was happy he would be spending less during his trip.
Parents with children studying overseas are also happy with the stronger ringgit.
Peter Yoong, 49, a residential manager, said his eldest son would be leaving for his Computer Science studies in Oklahoma in August.
He expected to pay US$12,000 (RM38,700) in fees annually. In March, Yoong said the exchange rate was RM3.30 to the dollar.
“Now, the rate is at RM3.20. There is definitely some savings here,” he said.
fr:thestar.com.my/news/story.asp?file=/2010/5/18/nation/6283860&sec=nation
Najib: It shows our fundamentals are strong
KUALA LUMPUR: Most Malay-sians welcome a strong currency as it reflects the country’s strong economic fundamentals and a robust recovery, Prime Minister Datuk Seri Najib Tun Razak told international financiers here yesterday.
“It is a movement in a positive sense. Generally, it is good for us,” Najib said during a question-and-answer session with delegates of the Official Monetary and Financial Institutions Forum (OMFIF) inaugural meeting in Asia.
At the meeting themed “Asia’s Role in the World Economy – the New Global Financial and Economic Order,” he was asked to comment on the ringgit’s strong performance especially against the US dollar, pound and euro.
Najib, who is also Finance Minister, said a strong currency also reflected the fact that Malaysian exports had been doing very well.
The economy recorded 10.1% growth in the first quarter of this year, which was the highest quarterly growth in a decade.
The ringgit is Asia’s best-performing currency this year, as foreign money has poured into domestic capital markets due to a combination of strong economic growth and rising interest rates.
Year-to-date, the ringgit has appreciated by about 6% against the US dollar, 19% against the euro and 16% compared with the pound.
In his address earlier, Najib also said the challenges that arose from the international financial crisis presented an opportunity for Asia and the West to work together to find solutions that benefited all.
“Malaysia’s unfolding economic story is a part of what is taking place in Asia. While Asia is indeed diverse, we are bound together by the common desire to transform and uplift our economies individually, which in turn will reinforce the region’s economic and financial integration in the New World Order,” he added.
“We are looking beyond Asean. We are also looking at how to get the United States and Russia on board. We want a stronger bridge in Europe and believe in open integration,” he added.
Najib, who briefed the delegates on the 1Malaysia concept, New Economic Model and Government Transformation Programme, said people were seeking effective governance where economic growth was inclusive and beneficial for all.
On how to survive the economic crisis, Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said Asia’s resilience, including Malaysia’s, was a result of a decade of reform.
fr:thestar.com.my/news/story.asp?file=/2010/5/18/nation/6283859&sec=nation
Demand for declining Western currencies rises with value of ringgit
KUALA LUMPUR: Major foreign currencies seem to be getting scarce due to increased demand from Malaysians after the ringgit’s appreciation.
A check by The Star here yesterday at various licensed moneychangers in shopping malls around the Klang Valley saw long queues of people.
Staff on duty were heard telling customers that they had run out of certain currency denominations, especially the smaller ones.
“We dispense euros only in its 500 denomination. Most people don’t want to exchange their foreign currency especially those with European money,” said an employee at one outlet, who declined to be identified.
“However, we still have stocks of British pounds and US dollars but they too are going fast.”
Meanwhile, a local bank here sold only a single denomination of �100.
Business executive Timothy Wong, on his way to Germany, said although he was thankful that he could exchange some currency for his trip, it was difficult to break his single �500 note.
“Unfortunately it is not practical for me to hold just one note that is worth more than RM2,000. But there is no other choice as I am due to fly in six hours,” Wong said.
However, tourists from Europe have found their pockets shallower following the strong performance of the ringgit against their home currency.
A tourist from Italy who wanted to be known only as Toni said he had to make certain budget adjustments.
“Although I had to trim my budget here and there, I am thankful that I am still able to do the things I wish to do in Malaysia,” he said.
Meanwhile in Penang it was business as usual at licensed moneychangers, with those in Jalan Mesjid Kapitan Keling, Chulia Street and Beach Street willing to carry out transactions.
Employee Shahul Hameed said he noticed a slight increase in purchases of foreign currencies, especially US dollars, over the past few weeks.
“More people are probably planning to go overseas after hearing about the higher rate of exchange for the ringgit,” he added.
When asked if they were holding back any dollars, pounds or euros, the 52-year-old said there were no instructions from his boss to do so.
fr:thestar.com.my/news/story.asp?file=/2010/5/19/nation/6288890&sec=nation
Banking on the strong ringgit
The strength of the ringgit, which is currently at its highest against the US dollar, euro and pound sterling, is good cause for optimism. But it still pays to be prudent.
THERE is nothing that Daria Lim, 25, loves more than shopping, and news of the strong ringgit is making her head spin with excitement.
“I am totally looking forward to cheaper prices for imported goods. It would be great if you could ask the respective brands on our behalf if they’re planning to reduce the prices. I know millions of shopaholics would be forever indebted to you!” she gushes.
This bargain hunter adds that she is most excited about how her favourite European high street brands will be affected, especially with the falling euro.
And although she realises that the impact on prices will not be seen so soon, Lim shares that she could not help rushing to the stores.
“I was being hopeful,” she jokes. “It is not happening any time soon, is it? Everything’s just as expensive as it was before. Sometimes I feel it is unfair because these people are so quick to raise prices but aren’t as enthusiastic when it comes to lowering them.”
It is a different story for 28-year-old Jasmine who does most of her shopping online.
“The prices are lower and I’ve noticed them going down for a few months now. It is still slow, and the reductions are still not that big, but if you buy a few items together, you can feel the difference,” she says.
Her favourite website is one that sells new and pre-loved designer bags.
“They are already cheaper than the boutiques because they get VAT (value-added tax) discounts when they purchase it overseas but with the exchange rate being in our favour, it is even more worth it,” she says.
After touching a 20-month high at 3.2700/ 2750 at the end of March against the US dollar, the ringgit has been extending gains since.
Last week, the local currency was acknowledged as Asia’s best-performing currency this year, which Prime Minister Datuk Seri Najib Tun Razak attributed to a combination of strong economic growth and rising interest rates.
And as foreign money poured into domestic capital markets, it shows that to date, the ringgit has appreciated by about 6% against the US dollar in the last 12 months, 19% against the euro and 16% compared with the pound.
And as many consumers are hoping, a stronger ringgit means lower prices of imported goods and services, confirms Ram Holdings Bhd chief economist Dr Yeah Kim Leng.
However, he notes, some benefits are immediate while others will depend on how soon the cost savings are trickled down.
Consumers will benefit when they pay for purchases denominated in foreign currency, he points out.
As he highlights, consumers will benefit when they purchase foreign goods and services directly, for example through the Internet, or consume them when they are abroad studying, holidaying or doing business.
“Parents paying for their children’s education overseas and those planning to spend on their dream vacation overseas will also enjoy the strong currency straight away,” he notes.
For the imported goods in stores, however, the price differences would depend on when businesses are able to pass through the cheaper imports, which in turn depends on market competition and stock turnover, he explains.
“Locally, the extent to which imported goods will be cheaper will depend on how much and how soon the cost savings are passed through by businesses. In less competitive and slow-moving markets, consumers may not enjoy lower prices as the pass-through typically will be less and later-than-sooner, depending on how soon the old stocks are cleared.”
Changing market
When asked, most of the distributors and marketers contacted declined to comment. A check around the shops in town revealed that many in the business have not received any instructions to mark down prices.
As a buyer at a British departmental store explains, the process is not that simple.
“For example, most of our products are made in other parts of the world like India or Indonesia. Of course, they are sent back to the UK for quality control but the pricing will factor in the cost of the material and human resource as well as transport and energy. So it’s not a direct confluence of different exchange rates,” she says.
The executive nonetheless points out that some standard products in the shop have shown marked reduction since the end of last year due to the drop in the pound sterling and euro.
A manager at a local distributor of major international fashion brands agrees, saying that the uncertainty of the world economy makes the currency trends difficult to ascertain.
Declining to be named, he says, “In my opinion, there will not be changes from now till the next six to 12 months. No one is sure whether the trend will be sustained.”
He advises shoppers looking out to make the most of their ringgit to find bargains at sales.
But Dr Yeah is cautioning those who are planning to splurge on imported goods to hold on to their purses first.
“We will experience a rise in purchasing power with a stronger ringgit but we should not splurge too much on imported goods, especially if cheaper and good quality local products are available,” he says, stressing that buying local can help strengthen our economy further.
Similarly, local travellers can go further and stay longer overseas but they should not forsake local destinations as local spending props up the economy, which in turn lends support to the strength of the ringgit.
“It is a good time to invest in foreign assets as a strengthening ringgit means that investors will have more purchasing power. It is also a good time for savers to save in local currency account, especially with the rising interest rates.”
As for those who are playing the waiting game – to see how far our money will go and how low other currencies will drop – before making any move, he advises them against engaging in currency speculation unless they have the appetite for it.
“Even economists studying currency values and movements have found that they are difficult to predict accurately since they are prone to ‘overshooting’, that is, deviate significantly from their underlying fundamentals. If professionals find it hard to predict currency movements, what more the person-in-the street.
“However, they can hedge by spreading out their purchases over time but if they can’t, the advice is to buy on the basis of need, not want.”
fr:thestar.com.my/news/story.asp?file=/2010/5/23/nation/6316928&sec=nation
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