Getting paid in USD

[aussielong]

I might be getting paid in USD soon. I can see a few downsides - no interest in USD denominated accounts for instance.

What would you add on to compensate for getting paid in USD? 10%?

Are there any upsides to getting paid in USD as opposed to stronger currencies?

[AtW]

no interest in USD denominated accounts for instance.

And who is paying meaningful interest without locking in for long time in any decent currency?

USD seems to be on the up again - euro bail outs and all that.

[HairyArsedBloke]

I might be getting paid in USD soon. I can see a few downsides - no interest in USD denominated accounts for instance.

What would you add on to compensate for getting paid in USD? 10%?

Are there any upsides to getting paid in USD as opposed to stronger currencies?

The septics are incapable of understanding the concept of paying anyone in anything other than USD; don't even try.

You might have to swallow the costs too, but even paypal will only cost you about 5% so 10% is chancing it; try it anyway.

As the fury friend botherer said, what account pays interest these days. As for USD getting stronger; I can say no more.

[aussielong]

You might have to swallow the costs too, but even paypal will only cost you about 5% so 10% is chancing it; try it anyway.

What do you mean by costs? Do you mean i'd have to cross the spread often? I wouldn't do that - I expect the dollar will strengthen eventually and I don't need the cash right now.

You're right about other ccy's not giving interest either so maybe there is no issue.

[Freamon]

What do you mean by costs? Do you mean i'd have to cross the spread often? I wouldn't do that - I expect the dollar will strengthen eventually and I don't need the cash right now.

You're right about other ccy's not giving interest either so maybe there is no issue.

If you don't want to bet on exchange rate fluctuations, then perhaps you should convert half your earnings into GBP (or whatever your local currency is) as you receive them. Then if the USD goes up or down before you need access to the money, you are hedged either way.

[aussielong]

If you don't want to bet on exchange rate fluctuations, then perhaps you should convert half your earnings into GBP (or whatever your local currency is) as you receive them. Then if the USD goes up or down before you need access to the money, you are hedged either way.

How am I hedged if I do that? To hedge my FX risk i'd have to lock in a rate with a forward contract or something like that.

If I do as you say, i've just got half the dollar exposure don't I? If the dollar tanks, I won't necessarily offset my loss by what i've got in GBP.

Not sure I want to hedge my FX risk because surely the dollar must strengthen eventually and I don't need the cash for a few years. I'd want to get rid of inflation risk I suppose.

Sorry if I misunderstood you.

[d000hg]

You might have to swallow the costs too, but even paypal will only cost you about 5% so 10% is chancing it; try it anyway

I'd love to see a corporation when I ask them to pay my $700/day into my Paypal account.

Also you can have USD paid directly into a sterling account through regular wire transfer, one bank or the other (probably receiving one) will do a conversion automatically. Of course they will use a rate that is not optimal but last time I checked this was something like 3%. Also you can have a USD and a GBP account, and move money between the two as you see fit.
Since GBP/USD can fluctuate that much over a week I don't really see you have cause for asking more. Just set your rate as high as you can as you would normally. If that doesn't give you enough back, don't accept.

You should be more worried about VAT, I'd say.

[aussielong]

I'd love to see a corporation when I ask them to pay my $700/day into my Paypal account.

Also you can have USD paid directly into a sterling account through regular wire transfer, one bank or the other (probably receiving one) will do a conversion automatically. Of course they will use a rate that is not optimal but last time I checked this was something like 3%. Also you can have a USD and a GBP account, and move money between the two as you see fit.
Since GBP/USD can fluctuate that much over a week I don't really see you have cause for asking more. Just set your rate as high as you can as you would normally. If that doesn't give you enough back, don't accept.

You should be more worried about VAT, I'd say.

VAT..? I'm not dealing in GBP. If you are holding USD and you intend on converting back to a stronger ccy you want compensation for the cost of carry. That will be factored into the rate you ask for. Otherwise you lose out.

[d000hg]

VAT..? I'm not dealing in GBP.

I was warned that recent/future changes might mean that if you're on the FRS, this might not matter. I never looked into it in detail so that may not be the case but simply saying "it's USD" doesn't automatically mean you escape... check with your accountant.

If you are holding USD and you intend on converting back to a stronger ccy you want compensation for the cost of carry. That will be factored into the rate you ask for. Otherwise you lose out.

Factor it in sure but coming with your rate and adding 3-5%... why not just figure out what rate you want and stop quibbling over small change. This is part of business.

[aussielong]

I was warned that recent/future changes might mean that if you're on the FRS, this might not matter. I never looked into it in detail so that may not be the case but simply saying "it's USD" doesn't automatically mean you escape... check with your accountant.

What is FRS? I am not living in the UK and have not done for 10 years, I will not be converting into GBP. Why would I pay VAT?

Factor it in sure but coming with your rate and adding 3-5%... why not just figure out what rate you want and stop quibbling over small change. This is part of business.

I could do that. But i've found putting a quote in that is broken down into a bit of detail has seemed to work better for me in the past. You can quite easily go in too high and price yourself out of the market, and if you don't know the local market how do you know where to go in at.