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Rates of Exchange

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    Rates of Exchange

    Can someone explain this to me please.

    1.00 GBP = 1.14688 EUR
    XE: (GBP/EUR) British Pound to Euro Rate

    BUT

    1.00 CHF = 0.905260 EUR

    1.00 CHF = 0.789146 GBP

    I thought that if the £ was worth more than the Euro, you would get more £ for the CHF not less
    Fiscal nomad it's legal.

    #2
    Originally posted by alreadypacked View Post
    Can someone explain this to me please.

    1.00 GBP = 1.14688 EUR
    XE: (GBP/EUR) British Pound to Euro Rate

    BUT

    1.00 CHF = 0.905260 EUR

    1.00 CHF = 0.789146 GBP

    I thought that if the £ was worth more than the Euro, you would get more £ for the CHF not less
    Currencies don't have to balance out.

    For example, you could make money by moving it across a range of different currencies and then back to say GBP, and make a profit. However, the spread and commission in each exchange would make it unlikely to be profitable.

    It's called arbitrage.

    Arbitrage - Wikipedia, the free encyclopedia

    Comment


      #3
      Originally posted by alreadypacked View Post
      Can someone explain this to me please.

      1.00 GBP = 1.14688 EUR
      XE: (GBP/EUR) British Pound to Euro Rate

      BUT

      1.00 CHF = 0.905260 EUR

      1.00 CHF = 0.789146 GBP

      I thought that if the £ was worth more than the Euro, you would get more £ for the CHF not less
      The £ is worth more than the Euro. Your brain is obviously not in gear yet. £0.78 or €0.90 gets you 1CHF. You get more CHF for your £ than your €. Therefore £ is worth more than €.
      Down with racism. Long live miscegenation!

      Comment


        #4
        Originally posted by DimPrawn View Post
        Currencies don't have to balance out.

        For example, you could make money by moving it across a range of different currencies and then back to say GBP, and make a profit. However, the spread and commission in each exchange would make it unlikely to be profitable.

        It's called arbitrage.

        Arbitrage - Wikipedia, the free encyclopedia
        Well done 9/10.
        When you grow up you may even practice arbitrage for real.
        Hard Brexit now!
        #prayfornodeal

        Comment


          #5
          Originally posted by sasguru View Post
          Well done 9/10.
          When you grow up you may even practice arbitrage for real.
          What do I need to do to get the full 10/10?

          Comment


            #6
            Originally posted by sasguru View Post
            Well done 9/10.
            When you grow up you may even practice arbitrage for real.
            Minus several million for not noticing that the original question has f.a. to do with arbitrage.
            Down with racism. Long live miscegenation!

            Comment


              #7
              Originally posted by alreadypacked View Post
              Can someone explain this to me please.

              1.00 GBP = 1.14688 EUR
              XE: (GBP/EUR) British Pound to Euro Rate

              BUT

              1.00 CHF = 0.905260 EUR

              1.00 CHF = 0.789146 GBP

              I thought that if the £ was worth more than the Euro, you would get more £ for the CHF not less
              No, the opposite. You get less pounds than euros for the CHF because pounds are more expensive.

              Comment


                #8
                Looks like the CHF is still climbing aganst the Euro.

                Hit a high of CHF 1 = .925 on opening, I did not expect that to happen for a few weeks. Could reach parity after all.

                XE.com - Free Currency Charts (CHF/EUR)
                Fiscal nomad it's legal.

                Comment


                  #9
                  Yikes! Not seen this before:

                  1.00 GBP = 1.25602 CHF

                  Nor this:

                  1.00 CHF = 1.29788 USD
                  Behold the warranty -- the bold print giveth and the fine print taketh away.

                  Comment


                    #10
                    Originally posted by alreadypacked View Post
                    Can someone explain this to me please.

                    1.00 GBP = 1.14688 EUR
                    XE: (GBP/EUR) British Pound to Euro Rate

                    BUT

                    1.00 CHF = 0.905260 EUR

                    1.00 CHF = 0.789146 GBP

                    I thought that if the £ was worth more than the Euro, you would get more £ for the CHF not less

                    You said:
                    chf/gbp=0.789

                    So inverting this:
                    gbp/chf = 1 / 0.789 = 1.2674

                    You also said:
                    chf/eur=0.9

                    To get gbp/eur:
                    gbp/chf * chf/eur

                    1.2674 * 0.9 = 1.14

                    So, its right isn't it?

                    Comment

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