Direct Conversions

Written by JS T. Alexander | 20 April 2009

Account Holders with direct conversion rates are considered regular transactions. They have access to real time quotes derived from the dealing system in line with different rates being set as the guiding rates for most of the dealings by the inter bank market participants.

This has been specifically designed for the private investors and overseas foreign professionals alike that rely on money remittances for their family’s needs and a way for them to hedge their dollar savings and earnings against adverse price fluctuations in the foreign exchange markets. By simply maintaining several account numbers for their individualized currency holdings which they intend to hold in their transaction exchange. Clients who intend to do this on a regular basis are encourage to attend company sponsored seminars and meetings, so that the information’s are provided accordingly to the needs and objectives of the clients.

This being done so that clients can use this strategy as a hedge and/or protection for their savings in dollars and somehow would be able takes advantage of this knowledge and information to ensure that their savings value are equally parallel with the exchange rate. This is as close as they could get inline with the world prices and not be subjected to the price dictation of the local money changers and or remittance offices. Their guiding rates have a wider spread against international price contributors because that is where these companies make their revenues from.

At the discretion of the clients needs, trading results and frequency of the trades made at the duration of the contract with the clients there is a need to establish the eight (8) basic currency accounts that should be maintained. As follows: the Japanese Yen, Swiss Francs, British Pound Sterling, the Euro, Canadian Dollar, the Australian and New Zealand dollar and the Reminbi or Chinese Yuan. It’s basically a matter of preference and choice as to what currency best suits their individual needs and the kind of portfolio management required.

This is also part of the other strategies in currency conversion that is mentioned in the succeeding topics mentioned herein. These are the basic currency holdings that most professional investors, portfolio managers have under management. And even some overseas foreign workers and professional businessmen investors hold and / or earn as their source of revenue and income which are commonly converted into US Dollar before reconverting them back to the original currency from their country of origin.

Other foreign investors who happen to be frequent travelers make use of these currency conversions as part of their strategy to maximize the currency conversion rates. With the preliminary exception of the United Arab Emirates (UAE) Dirham and the Hong Kong Dollar which is primarily pegged to the US Dollar at current levels. However, all major transactions are US Dollar based but by opening an account with the right broker and or institution, the program may provide the investors a direct currency relationship and can make informed decisions based on it by making use of the different foreign currency holdings from the accounts. This is the value that Foreign Exchange brings not only to the livelihood of our Overseas Foreign Workers but the entire commerce that provides the lifeline to our world's economy as a whole from major businesses, corporations exposure to international exchange rates.