little legs wrote:just got 1,865 euros for £1,500 with the above rate from crown deliverd 1st september thats around 124 euros better off then what i can get today at around 1.17
Crown is an ok option but you need to remember that part of the reason that the forward contract rate is higher is because you pay now for delivery in X months and therefore they have your money in their bank earning them a return. In theory you need to discount the effect of the lost return you could have made over the 3 months if you'd held onto your £.
However, the above rate is pretty good.. if you'd held onto the £1,500 until Sept you could have had about £1,530 and therefore you've got an effective exchange rate of 1.219 which is ok
I am now happy to order some euros.....Caz
