Brushing Up Some Basics Regarding Foreign Exchange

 

Because you have to change your money into the currency of the country you wish to make a purchase of the house or whatever, it is prudent to know something about foreign currency exchange.

 

It is also important to make sure when you are ready to exchange your currency that you chose the best quote regarding the rates of exchange, as this can make a big difference.

 

There are a number of foreign currency exchange companies that will quote you much better prices than the high street banks, so look around.

 

We often hear about a currency pair. This describes two different currencies. The first mentioned, is the base currency. The second of the two currencies is the counter or quote currency.

 

Thus, in an example quote of EUR / USD 1.59 it means that for 1 EUR you have to give 1.59 USD

 

Since currencies move up or down all the time, the position can change and a EUR / USD quote may alter to EUR / USD 1.5910 meaning that the Euro went up in value. But, if for instance EUR / USD went to 1.5890 it would mean, that the dollar went up in value.

 

There are many currencies being traded, but the most traded ones are called Majors.

These are EUR / USD, GBP / USD, USD / JPY, USD / CAD, USD / CHF, AUD / USD

 

Pairs, where the euro is involved, are known as Euro Crosses. A currency pair where the USD is not included is called Cross Rates.

 

The bid price is the one at which the broker is prepared to buy, and the offer or asking price, is the one the broker is prepared to sell at.

 

Currency deposits are usually moved from one bank to the other by the use of the electronic transfer system (Society for Worldwide Interbank Financial

Telecommunication) SWIFT for short. This is a very fast and simple way to make the transfer.

 

Foreign Exchange is often known as Forex or FX.

 

Bull Market is a period of time when prices are seen to be rising.

 

Bear Market is a period of time when prices are seen to be falling.

 

Market Rate is an up to date quote for a currency pair.

 

Cable is a slang expression for Sterling / US dollar exchange rate.

 

It is as well to remember that the foreign exchange market is basically slotted in two levels. One is the retail level and the other is the wholesale level.

 

On the retail side, the smaller agents buy and sell foreign exchange taking the reading from the reference rates. These are adjusted constantly as events unfold in the market.

 

The wholesale level is an informal network of hundreds of brokerage companies and banks, who deal between themselves as well as very large corporations. It is this trade which is the one, when the newspapers make a reference to the foreign exchange.

 

These days, people are faced with several permutations. On one hand, they are watching the position of Sterling which has been under pressure lately for many reasons. They are also watching the prices of houses in the UK, and getting nervous

noting they depreciate more and more. This of course, makes them think it may be worth to buy abroad and sell in the UK before the prices do start to fall further.

 

On the other hand, prices of property abroad in some cases are also falling, but selling now would mean that with the Sterling depreciation, they could get a good exchange rate and eventually buy a house in the UK, especially if the prices get lower and lower.

 

But then of course, there is the other way of looking at it. For instance, the Euro might depreciate in due course versus the USD, and might push Sterling higher in relation to the Euro. It needs thinking about. One way or the other, it opens up possibilities of making money especially if catching things right.

 

 

Paul Dubsky 

 

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Driving in France Looking to Buy a House

 

 

If you have decided to drive around with the idea of buying a house in France, you may wish to brush up your knowledge about how to ask in French the various things that will invariably come up.

 

You will no doubt have questions to ask the estate agent (un agent immobilier).

You will also want to know something of the French banking, since you will eventually wish to open an account there.

 

Let us start with the visit to an estate agent.

 

We are looking for a house for roughly XYZ euros (Nous cherchons une maison  pour environs XYZ euros. We have two children so we need three or four bedrooms. (nous avons deux enfants, alors une maison avec 3 ou 4 chambres a coucher).

 

We would like to see houses in this area (Nous voulons voir des maisons dans les alentours.

 

We would like to see houses not further than three kilometres from here (Nous voulons voir des maisons pas plus que trois kilometres d'ici)

 

The house is situated in lovely surroundings (La maison est situee dans un tres bon cadre).

 

It is important to have central heating (C'est important d'avoir le chauffage central).

 

We are going to look around (Nous allons faire un tour).

 

The house is in a beautiful location (La maison est dans un endroit magnifique ).

 

Is there a supermarket nearby? (Y at-il un supermarche pres d'ici? )

 

This is exactly what I was looking for (C'est exactement ce que je cherchais )

 

I really liked the first house more than the second one (J'ai encore plus aime la premiere maison que la deuxieme )

 

We have finally reached a decision (Nous avons finalement parvenus a une decision )

 

It is not far from the town centre (C'est pas loin de centre de ville )

 

The building was completely renovated (Le batiment a ete entierment renove )

 

A row of houses (La rangee de maisons ).

 

Note that in France, the land is measured in hectares. You will come across the word le demihectare  and  since an acre is 0.4 hectares, it is easy to work things out.

Let us now turn to some of the words and expressions you will come across when opening a bank account in France.

 

It is important to remember, to never issue a cheque without having sufficient funds

in the bank to meet it. If the cheque is not met, the matter will be reported, and the Banque de France can impose a ban called Interdit Bancaire. This means, that for 5 years, one is not allowed to issue cheques.

 

A savings account ( compte d'epargne ) and a long term savings account ( compte

D'epargne logement ) are popular. Having a tax exempt savings account (codevi) may be the one you will want to have. Of course, the current account is the one you will want anyway, and this one is called compte courante.

 

Should you need an overdsraft, it is called decouvert. Other names to note, are the clearance of a cheque (encaissement ), the ATM machine ( distributeur or guishet

automatique ), the balance ( solde ), the statement of account ( releve de compte ),the permission to debit your account the provider is asking ( titre inter bancaire de payment ) or ( TIP ) for short.

 

A few more things like the interest rate ( taux ), the account holder ( titulaire ),

the transfer of funds to some other account ( virement ), detailed particulars of your account and bank ( releve d'identite bancaire ) or (RIB) for short, direct debit (prelevement automatique), ,and the exhange rate ( le cours du change ) are also useful to know.

 

 

 

 

Paul Dubsky

 

 

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Useful Phrases When Driving in French Speaking Countries

 

Sometimes one wants to ask people how to get to somewhere, or where is this or that, and without knowing how to say it, life can be a little difficult.

Here are a series of likely phrases which may help in typical situations.

 

Excuse me, but can you tell me where I can find a petrol station? ( Excusez moi, mais pouvez vous me dire ou je peux trouver une station service?)

Your car may need some attention and you wish to ask:

I need a mechanic to look at the car ( J'ai besoin d'un mechanicien a regarder ma voiture)

 

It may be a Sunday and you want to ask: Is there a garage open on a Sunday here? (Y at-il un garage ouvert le dimanche ici?)

If you have a flat battery you may need to ask: I have a flat battery have you a charger? ( La batterie est a plat avez-vous un chargeur?)

 

You are on your way to Paris and you want to know how far it is: How long does it take to Paris from here? ( Combien de temps faut-il pour Paris d'ici?)

 

You may want to be sure they take a credit card: Can we pay by credit card, we have not enough cash?( Pouvons nous vous payer par la carte de credit nous n'avons pas assez d'argent?)

 

You are looking for a toilet and say: Excuse me are there any toilets near here? (Excusez moi,y at-il des toilettes pres d'ici?)

 

You see a policeman (un agent de police) and you want to ask him: Is this the right way for the motorway?( C'est bien la direction pour l'autoroute?) Or you may ask him: Is there a motel nearby? ( Y at-it un motel pres d'ici?}.

 

You have arrived late at the hotel and you want to say: There were a lot of delays on the road ( Il y avait trops de bouchons sur la route) . You may wish to add :

On top of that the car stalled several times (En plus, la voiture a cale plusieurs fois.

 

The car may be dirty so you are looking for somewhere to have it washed and you ask: Is there a place to wash the car: Y at-il une place pour laver la voiture?

 

If you see a sign that says: Impasse then it means a No Through Road. You may wish to know that (faire demi tour) means to turn back. Just in case you get a parking ticket, it is called (la contravention) and the traffic warden is called ( le contractuel).

The fog (le brouillard) can be a nuisance and the flood (l'inondation) is another hazard. You may want to know that mud is called (la boue).

 

When people tell you to keep going straight on, they say (Tout droit).When they tell you to turn left: ( Tournez a gauche, when they say turn right: (Tournez a droite) and when they say turn right at the next lights: (Tournez  a droite au prochains feux).

 

You may need to find a bank and ask, is there a bank here? (Y at-il une banque ici?)

 

You may need to know the exchange rate (Le cours du change).

 

Sometimes, one wants to confirm one is on the right road for Paris let us say: Is this the right road to Paris:  (C'est bien la route pour Paris?) If you want to say: I am sorry to trouble you: (Je suis desole de vous deranger).

In case you want to know what the rush hour is in French, it is (les heures d'affluence).

 

You will not need your medical insurance (une assurance maladie) if having the flu  (avoir la grippe), but you may, if you have a heart attack ( une crise cardiaque ).

 

In case you need to find a local pub, you will have to ask for (le bistro du coin).

 

 

Paul Dubsky

 

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The Evils of Inflated Credit

 

 

The questions of currency and credit are closely interlinked. The inflation of credit does not necessarily lead to inflated currency, and deflated credit does not necessarily lead to deflation of currency, provided the balancing act is done carefully. A spanner in the works can cause all sorts of problems.

 

It could be argued that the inflated credit, a phenomenon which came in handy some ten years ago, helped the wheels to go round particularly creating rising costs in house prices, notably in the UK and USA. This is the culprit, which is now causing a sharp reversal towards a deflated credit period.

 

For instance, if an inflated credit situation made for house prices to rise to start with, an unsound currency period can follow, and thus carry the evils further.

 

Is it reasonable to expect that it is safe to extend credit to someone when that someone is borrowing constantly somewhere else against mere IOU notes? If currency was to follow the same path, it would become very unsound.

 

When problems start to build up in the private and public sector, steady and determined self denial is prescribed as a medicine. However, the condition of the world today is one, which cannot allow uncontrolled severe restrictions on expansion of credit with an easy heart. What is likely to be needed is justifiable expansion of credit which sanctions the demands of the manufacturing and trading sections in particular. Such credit of course, cannot be given without careful monitoring, since the tax payers cannot be expected to bail out banks if unworthy allocation of credit is continued.

 

Mostly, people are interested in the housing front. We are getting to the point where houses are hard to sell because the lenders might have problems as well as the borrowers. Often, a house would sell and is just the one the buyer wants, but he cannot get it because he cannot sell his house, as money is not made available to his buyer. Where it was possible to find a solution in the past, today it is not all that easy.

 

In other words, it is not the price of the house that is necessarily the problem, but the difficulty of finding someone who will give approval to lend, as well as possibly someone who actually has the money to do so.

 

If everybody had their houses fully paid for, cash indeed would be king, and business would be brisk. To find a buyer and a seller who both have their houses fully paid for and have cash to spare, can and does happen, but not often. That type of buyer and seller is the dream for the real estate companies, because they know that the only hurdle needed to jump, is whether the buyer likes the house and not whether he will get the money to be able to purchase it.

 

So, is it all gloom and doom or is there a way out? In due course things will improve like they mostly do, but until that can happen maybe it is best to fasten our safety belts for a bumpy ride. Things were good for many years and now there is a price to pay for that easy credit given so freely.

The boat is in high waves with more on the way, but it will sail into calmer waters as time goes by. Everybody will be that much wiser, and any damage will be eventually repaired. After all, things do run in cycles.

 

 

Paul Dubsky

 

 

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When Adrenaline Addiction Takes Over

 

 

There are certain people born with a natural tendency for impulsiveness. Quite a number of these tend to lean towards gambling, the driving reason often being adrenaline addiction.

 

When the central nervous system needs more stimulation, it seeks to find bigger thrills to feed on.

 

It is known that forex trading can provide huge thrills, and to approach this business allowing the adrenaline addiction to dictate, can turn out to be very costly.

 

When muddy data play a part in forming an opinion, and added to this, decisions are made spurred on by adrenaline addiction, it can be a formula for disaster.

 

Adrenaline addiction can make people sacrifice quality to get instant results. This can lead them to take steps which are not properly planned, and more often than not, result in failure. In forex trading one must beware of this problem.

 

Many executives and leading political figures are prone to this kind of addiction, which explains why at times, they tend to make certain hurried regrettable decisions. Adrenaline addicts are not frowned upon like some alcoholics, but are given full marks for being constantly on the go, and praised for their relentless efforts to try and achieve their goal.

 

Bookmakers and casinos are rescued time and time again, by shrewd punters, who when thinking clearly are hard to beat, but when under pressure, allow adrenaline addiction to take over, and start making erratic decisions which costs them dearly.

 

We have all seen some very high wired tennis stars, boxers, film stars, and footballers, who thrive when constantly in the limelight, only to dwindle to serious boredom when out of it, which in turn, leads to their thrill seeking that can have serious overtones.

 

The bottom line is to stay in control and keep cool at all times. You have to slow down sometimes to win.

 

The ability to create and sustain adrenaline may be of help to propel an executive or sportsman forward, but it can backfire. Wear and tear on nerves and tissues will eventually be the result.

 

Adrenaline is what our body fabricates to give us a boost to meet a challenge. When there is a crisis, adrenaline turns up because there is a need to make a fight of it

 

There are people who just will not let go and must be buzzing non stop. They will be on the phone all the time, make notes and calculations. Even if they seem to be relaxing, they are planning their next moves. Hyperactive people are constantly in action, but can eventually start getting burnt out and become bored. At that point, they will tend to seek those higher and higher thrills, in order to get the adrenaline going,

since smaller challenges will not be good enough to get it produced. It is only a matter of time before they are in danger of getting into troubled waters.

 

It is not all that hard to become an adrenaline junkie, and although on the face of it, to be hyperactive would seem to be beneficial in some line of business but as I said, it can bring about hurried decisions and mistakes. In the business such as forex, banking, betting, bookmaking, driving etc. making even one mistake, can be catastrophic.

 

The possibility of what adrenaline addiction can cause, must never be underestimated and must be borne in mind, especially by those who are in positions where there is no room for mistakes.

 

 

Paul Dubsky

 

 

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The Probability of Negative Equity Scene

 

When a situation arises, that the market value of the owner occupier's property falls below what his mortgage is, it is a negative equity situation.

 

By making it possible in the first place to purchase the house because of easy loans, many have gone ahead and bought. They were happy, because the property was rising in value, and it was even possible to keep borrowing more money against it.

 

Naturally, business was booming, money was being spent on all sorts of things like cars, televisions, holidays, etc.

 

A general sense of well- being and confidence emerged. All governments love this kind of state of affairs, and everybody is happy.

 

When things begin to change dramatically, it brings problems of huge proportions. It likes to be seen by many, as a general problem rather than a personal one.

 

Negative equity, one of the boom and bust economy consequences, is bad news

as it  can also lead to many other problems. The feel good factor is gone, and worry sets in. Less money on the table means fewer goods are purchased, which calls for less demand to produce them, thus less jobs. Many mortgage payments are not being kept up, and repossession dangers come into the equation.                   

 

All this can lead to other far reaching repercussions, which in turn can have an effect on many who are not even in the negative equity trap.

 

There are a number of people, who believe that the shortage of money factor does not always lie in the inequality of opportunity, but often in the inequality of performance. They believe, it is vital to raise the output of personal effort to make ends meet, rather than making it a problem which everybody else must automatically pay for, apart from some cases, where hardship will set in, come what may.

 

While the remarkable ease to obtain credit was promoting plenty of business and everything was buzzing, it also sucked in an army of people who were not really ready to take on the responsibilities in paying back money borrowed.

 

Negative equity can lead to social troubles. Also, whenever personal debt starts growing with no visible way out, it causes the problem of loss of consumer confidence.

 

Recently tax payers have been forced to pay towards the propping up of one financial institution already, and who is to say there will not be repeat performances.

 

The signs are, it will be more difficult to borrow money, even for worthy customers. Businesses will find it harder to get the credit they need, and all sorts of difficulties will follow.

 

The irresponsible lending which caused so called happiness, will now result in pain to lender and borrower.

 

Now let us look at things with less gloom. Firstly, there is the group of people who bought their houses at prices which were relatively low, assuming of course that they have not been topping up their mortgage loans on the strength of the rising prices of property. They would have some way to go before getting into a negative equity territory just yet.

 

Then there is the other group who bought their houses at an already spiralled upwards price, and are in a more dangerous position.

 

It is to be noted, that albeit repossession is of course a threat if payments are not kept up, and that some companies start getting worried even after a couple of months of arrears. They can take action by going to the County Court to get a possession action so that they can sell the house and recover their money. Of course there is normally a period of writing and offer making, and solicitors start writing etc., which extends the time before anything does happen.

 

Most of all this can be avoided, if proper action is taken early. There are a number of expert companies which handle these situations remarkably well. You can argue on terms with the mortgage companies for a start. There are ways how you can rent back your own home, in other words remain in your home as a tenant, and various other ways to pursue.

 

It is always prudent to be prepared to meet problems or find a way to get out of their way. It may be better to get a smaller house or a flat while there is time. It may be better to sell and move abroad while there is time. Every individual has different problems and possibilities.

 

There are some very helpful estate agents both here and abroad with nice deals on their books which might be good to consider. To get foreign money, there are some really good foreign currency exchange companies who will give better rates of exchange than most high street banks should one wish to sell and buy abroad.

 

By being prudent in the future, by extra hard work and looking for the best bargains, things will in due course get sorted out. They will not get sorted out by borrowing to get out of trouble, without a clear reason and plan how to pay it all back.

 

 

Paul Dubsky

 

 

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Memo on Recession, Housing, and Inflation

 

When recession starts creeping in it will become noticeable. Spending on households gets smaller and smaller as incomes get smaller. Business in general gets slowed down, and when that happens, unemployment starts going up. The consumer has less money to spend and gets worried, and any major outlays will tend to be delayed as much as possible. The consumer hangs on waiting for better times.

 

It does not mean that everybody earns less, but many will. What does make an impact is the feeling of having to be more careful about spending.

 

Naturally, consumer confidence starts to tumble, as a gloomy point of view takes over. It does not help to see reports of subprime crumple and other financial horror stories.

 

On the housing front, it is also a time to ponder, since most people are governed lately by the rising or falling value of their homes. Many have been dependent on the continuation of the increasing market price of their house and got used to this magic phenomenon which enabled them to get so many things they could not afford otherwise.

 

The financial standing of people is not always best measured by what amount they have in the bank, but their steady earning capabilities, and the competence of the control of their funds as well as their reliability. Thousands of instances occurred, when people have won fortunes or inherited them, only to wind up in a big minus. These are the most vulnerable people, because quick money came their way, and good luck to them, but they have problems to keep up their new style of living if something goes wrong. To fall into money is one thing, but to keep it, is another. Finding a way out is always hard, but at least there is a lesson to be learnt, and that is, when you get into money, do not be in a hurry to spend it all without making sure you can really afford it. Keep enough money to ride out a possible storm.

 

Of course, there are those who have been careful with their money, and to them many opportunities will unfold to purchase property at rock bottom prices. They are undoubtedly only waiting for the right moment to pounce and will gain eventually.

 

There are others, who have made investments which have lost in value. They have not spent their money recklessly, but are victims of circumstances which may change later. Mostly, these people can wait and will be back in good shape ready to fight on.

 

Looking to spot inflation is not too hard. The Retail Price Index is a good pointer to the inflation position. This is taken once a month.

 

The R.P.I. is arrived at by taking a numerous lot of prices and ascertain as to what extent there has been a price move. The items selected will generally be important such as food and other everyday necessities.

 

When you notice the phone bill, the electricity and gas bill, and various items on your shopping bill go up, you are looking at the arrival of inflation.

 

In other words, we know that your money will not go as far as it did before.

Inflation can start eating into your savings, so make sure that your invested money makes at least enough to counter this.

 

Of course, gloom comes but it also goes. At all times be sure you get the best you can for your money whether it is buying a house or currency or a car or whatever.

 

There are many foreign currency exchange companies, so find the one which gives you the best exchange rates. It is well worth the few phone calls. The same thing goes for buying a house, so do not be afraid to make an offer thinking it might be on the low side, you never know your luck. With cars or anything else, the principle is the same, look for value.

 

Paul Dubsky

 

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Useful Words to Know When Buying a Property in France

 

Often, even if one knows a foreign language well enough to understand and to be understood, there are times when certain expressions here and there might cause a certain amount of difficulty in remembering them.

In conjunction with the task of looking for a house, and subsequently finding one, it is important to be familiar with the expressions and words which are likely to be used at that time.

For this reason, set out below, are a number of words to help those who might find them useful, and thus make life that little bit easier for both the buyer and the seller.

1.  Buyer = Acheteur

2.  Deed of Sale = Acte Authentique De Vente

3.  Estate Agent = Agent Immobilier

4.  Cash = Argent Liquide

5.  Lift/Elevator = Ascenseur

6.  Proof of Ownership of the Property = Attestation De Propriete

7.  Lawyer = Avocat

8.  Bath = Bain or Baignoire

9.  Suburb = Banlieu

10.       Building = Batiment

11.       Office = Bureau

12.       Land Registry = Cadastre

13.       Country = Campagne

14.       Cellar = Cave

15.       Carpenter = Charpentier

16.       Shopping Centre = Centre Commercial

17.       To do one's shopping = Faire ses Courses

18.       Central Heating = Chauffage Central

19.       Air Conditioning = Climatisation

20.       Seaside = Bord De Mer

21.       Corridor = Couloir

22.       Courtyard = Cour

23.       Mortgage = Hypotheque

24.       Double Glazing = Double Vitrage

25.       Bus Station = Gare Routiere

26.       Train Station = Gare

27.       Renting of houses = Location des maisons

28.       Ceiling = Plafond

29.       Plumbing = Plomberie

30.       Power Socket = Prise Electrique

31.       Sitting Room = Salon

32.       The Grounds = Terrain

33.       Roof = Toit

34.       Entrance Hall = Vestibule

35.       View = Vue

36.       Town Planner = Urbaniste

37.       Basement = Sous Sol

38.       North = Nord

39.       South = Sud

40.       East = Est

41.       West = Ouest

42.       Window shutters = Volets

43.       Seller = Vendeur

44.       Attic = Grenier

45.       Sunrise = Lever du Soleil

46.       Sundown = Coucher du Soleil

47.       Place to park = Endroit pour se garer

48.       Post Office = Bureau de Poste

49.       Take possession of = Prendre Possession de

50.       Swimming pool = Piscine

51.       Mains = Canalisation

52.       Neighbour = Voisin

53.       Neglected = Mal Tenu

54.       In Good Condition = En bon Etat

55.       Wall = Mur

56.       Orchard = Verger

57.       Landlord = Baileur

58.       Right of Way = Droit de Passage

59.       Housing Estate = Lotissement

60.       Maintenance = Entretien

61.       Paving = Dallage

62.       Shower = Douche

63.       Freezer = Congelateur

64.       A Will = Testament

65.       Building Site = Chantier

66.       Deposit = Acompte

67.       Workshop = Atelier

68.       Slate Tile = Ardoise

69.       GDF = Gas de France

70.       EDF = Electricite de France

71.       Lease = Baid

72.       Heating = Chauffage

73.       Chipboard = Agglomere

74.       Planning Permission = Permis de Construire

75.       To make bigger = Agrandir

76.       Furniture = Meubles

77.       Aerial = Antenne

 

There is of course a good chance that the estate agent and the solicitor and others one has to talk to when buying a house, speak English. If their English is not all that good, it will be nice to know as many words as you can.

 

Paul Dubsky

 

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More Words and their Meaning Relevant to the Foreign Exchange Scene  

 

There are many instances when we hear or read numerous words and phrases, but are rather uncertain of their exact meaning. The foreign exchange is only one part of the financial world of many sections, each of which seems to have its own expressions and jargon, as if it was all designed only for those with professional or specialised knowledge of the subject.

 

Of course, other trades have their own language, like the legal boys for instance.

It is not too difficult to get to know what it all means, and if one can learn some of the important words and expressions, it makes life that much easier.

 

Here are a few expressions you will run into, the answers to which you may find useful:

 

World Bank: The bank consists of IMF members, and helps by making loans to member countries, particularly when money from the private sector is not offered.

 

Bank Rate: This refers to the rate at which a central bank will lend to its domestic banks.

 

Basis Point: One per cent of one per cent

 

Cable: The foreign exchange market reference for the USD/ GBP

 

Consumer Confidence: This is an indicator of economic conditions run by the Conference Board. All over the country, some 5000 consumers are surveyed monthly, the degree of confidence being associated with the volume of consumer spending.

 

Covered Call: The Foreign Exchange Market uses this name for the rate USD/GBP

 

Cross Rate: This is a rate between two currencies of which neither is the USD

 

CHIPS: Clearing House Interbank Payments System.

 

Disposable Income: Money earned after tax.

 

Eurodollars: USD on deposit in a bank outside of USA.

 

LIBOR: London Interbank Offered Rate.

 

Liquid Assets: These are various assets which can be quickly converted into cash.

 

Easing: A price decline.

 

Economic Indicator: Data indicating economic growth, taking into account for example, retail sales, employment, rates, etc.

 

Liquidity: The competence of a market to undertake sizable transactions.

Resistance Level: A summit of a price level at which point the supply is greater than the demand.

 

Bull Market: A period of time when prices are seen to be rising.

 

Bear Market: A period of time when prices are seen to be falling.

 

Market Rate: Is the up- to- date quote of a currency pair.

 

Pip: refers to the 4^th decimal point i.e.0.0001 of any foreign currency.

 

Fill Price: This is the price at which the order for buy or sell was executed.

 

Households Survey: The number of people that are employed, the labour force in general, and the rate of unemployment.

 

 

Paul Dubsky

 

 

 

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Some Knowledge On Having a Bank Account in France

If you have a bank account in France, it may be advisable to note the following:

Never issue a cheque without sufficient provision in the bank to meet it. If the cheque is not met, the matter will be reported and the Banque de France can impose a ban called Interdit Bancaire. This means that for 5 years you would not be allowed to issue cheques.

Do not write open date or post dated cheques.

When paying by card in France you are using the ( CB ) Carte Bleu payment.

The savings account = compte d' epargne.

The long term savings account = compte d' epargne logement.

The tax exempt savings account = codevi

The current account = compte courante

An overdraft = decouvert

The clearance of a cheque = encaissment

The ATM machine = distributeur or guishet automatique

The balance = solde

The statement of account = releve de compte

     The permission to debit your account the provider is asking = titre inter bancaire de payment ( TIP )

     Interest rate = taux

Account holder = titulaire

Transfer of funds to some other account = virement

Detailed particulars of your account and bank = releve d'identite bancaire ( RIB )

Direct debit = prelevement automatique

If you are repaying a mortgage in France, make sure that you keep up the payments in time. This applies also to any other loans you might have, because to get black listed does not take too long.

Mostly, foreigners who open a bank account in France are those who wish to buy a property there. It is imperative to have an account because there are so many things to be paid when one owns a house. Water, gas, electricity, not to mention other payments before one even moves in.

For instance, you must pay the French notary who deals with the matter of exchange of contracts as well as all the searches regarding the property. One must bear in mind that he does not work for the buyer or the seller, but works for the State. Never be late in paying him.

Still talking about money, it might be worth your while to give serious time to understand the French inheritance law. There is a big difference regarding this subject compared to other areas of the world, and before doing anything else, make sure you really study the situation.

Here is a list of some of the big banks in France: Le Credit Agricole, Banque, Populaire, BNP Paribas, Caisse d' Epargue, Credit Mutuel, Societe Generale, HSBC, Barclays.

Paul Dubsky

Foreign Currency Exchange Services Ltd. 

Using a French bank account, credit cards, useful banking terms, what to be aware of, understanding the inheritance law in France.

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Some Words and Some Knowledge Regarding the Foreign Exchange Market  

Whether you call it Forex or Fx, you are talking about the Foreign Exchange market. This is where the trading of currencies, one against the other, is done. To have an idea just how big the action is, add all the stock exchanges in the world together and the Foreign Exchange will still be bigger!

When you consider that various speculators, hedge funds, governments as well as companies, plus countless private investors who take part, it is hardly surprising that this market is so strong and that the estimated daily average turnover of the foreign exchange market is over 3 trillion US Dollars.

By far the most asked for rate is the SPOT RATE. This transaction has to be settled within two business days.

With London, New York, Tokyo, Frankfurt and Sydney as the chief trading centres, the action hardly ever closes.

When you are at an auction and you put your hand up, it means you are bidding for something at a certain price. In a similar way, the word BID refers to the price at which the buyer is prepared to buy the currency.

The OFFER means the price at which an amount of currency the seller is ready to sell.

A LIMIT ORDER is when you give instructions the buy or sell a currency at a predetermined exchange rate.

When international banks buy and sell between themselves, the bid and exchange rates are called INTER- BANK RATES.

The difference between the bid and ask price of a currency is the SPREAD.

STOP LOSS is when an order is given to purchase or sell a currency at a price level set by the client on a particular trade which if reached, will close out the particular position at the stated price.

TRANSACTION DATE is the date on which a foreign exchange trade is being done.

The date which foreign exchange contracts settle is called the SETTLEMENT DATE.

Every currency has a three letter code such as for the Euro (EUR), for the British Pound (GBP), for the US Dollar (USD), for the Japanese Yen (JPY), for the Australian Dollar (AUD), for the Swiss Franc (CHF), for the Canadian Dollar (CAD). Actually, these are the major trading currencies and all commonly traded currencies are called the MAJORS.

CABLE is a name given to the US Dollar/British Pound rate in the foreign exchange market.

EFT is the Electronic Fund Transfer which is the transfer of money between banks.

When there is a quote in currency pairs, remember that the first currency is called the BASE currency. The second currency is called the COUNTER currency. As an example when you get a quote GBP/USD at 1.96 it means that for one GBP you will get 1.96 USD. So for ten thousand pounds you will get nineteen thousand six hundred US Dollars.

The many foreign currency exchange companies which you can find on the internet will gladly give you a quote, and by phoning around you can find the best currency rates. They will be better than a high street bank is likely to offer and they will give you a very fast service. Furthermore, most of them will not charge you any commission or the cost of the electronic bank transfer.

Paul Dubsky

Paul Dubsky is director of Foreign Currency Exchange Services Ltd. The company is focused on being able to offer really friendly currency exchange rates. We believe we are the only Foreign Currency Exchange company which offers special rates to Senior Citizens.

The meaning of foreign exchange words, description of the forex market, the currency rates of the foreign currency exchange companies.

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Keeping in Touch with Some Basics How Banks Operate

There are some people who may wish to know a little about what banks are all about, especially when these financial institutions have had to swim in rather troubled waters just lately.

Banks are here to make money. It is hard to manage without them, and it is hard for them to manage without us. On the face of it, this looks like a marriage made in heaven. However, since all marriages are based on absolute trust and hate turbulent situations, and because these two features seem to be coming into play, it is not surprising that this is causing a certain amount of concern to depositors.

Basically, a client places money into his account. The bank will lend that money to other clients and make a profit on the deal. If the client banked say $10000, the bank can lend $90000 out because they must maintain a 10 per cent cash reserve ratio. In other countries, the cash reserve ratio requirement can be higher or lower. Any country can decide to alter the cash reserve ratio if needs be.

There is nothing to stop a bank to set aside more than the required minimum, meaning having excess reserves. It is not particularly rewarding for banks to do this, since they get no interest on that money, albeit they can channel it out on short and overnight terms to banks which need to maintain their minimum reserve ratio.

Getting back to that $90000 the bank can lend out, and let us say grant overdrafts but creating of course a liability factor, as the bank has to pay out whenever the various borrowers issue their cheques.

The position of the bank is that it has a total cash sum of $10000 received.

However, it has lent out deposits of totalling $90000. Add this together and you get a figure of $100000 representing total assets which are the $90000 in overdrafts plus the original $10000 cash received, which of course includes the required 10% reserve.

What took place is that the bank granted loans worth $90000 giving birth to money which did not exist before, based on the $10000 received in cash and locked in the safe.

People do not put in all the money on the same day, and they do not take out all the money on the same day. Cash in form of bank reserves is there to meet some withdrawals that may possibly be required. Banks have been managing quite well with small cash reserves in their safe, because they hold a number of liquid assets which they can sell for instant money. It is better for them to earn more money out of these liquid assets than having cash. Bankers are clever enough to know what kind of mixture of investments they should hold not to be caught with their pants down.

As well as lending money both short and long term, banks place investments in other areas. For instance, apart from the liquid assets, they can purchase long term government bonds and other securities. However, without cash reserves it is not possible to give birth to additional money unless breaking the rules.

Of course banking is far more intricate than that, but at least one can grasp some basics, and understand why, when a spanner is thrown into the works due to whatever reason, hiccups can follow.

Paul Dubsky

Paul Dubsky is director of Foreign Currency Exchange Services Ltd. The company is focused on being able to offer really friendly currency exchange rates. We believe we are the only Foreign Currency Exchange company which offers special rates to Senior Citizens.

Bank investments, the meaning of cash reserve ratio, concern for depositors, excess reserves, birth of money, liquid assets, government bonds.

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Let Us Not Forget the Pendulum Factor of the Foreign Currency Exchange

Last year is gone and buried. Many have seen better years and are anxious to see what will develop now.

A big percentage of investors in the foreign currency exchange game will be focused on two runners only, namely the US dollar and the euro. Of course, there plenty of other runners to select from, but those two are bound to be in the spotlight.

While the pendulum might still have a little room to go against the dollar, it is getting uncomfortably near the point of return when it starts on the swing back journey.

It is now, that it would be prudent to find the best foreign currency exchange company to select from. Quite a number are available on the internet. Find out who gives the best currency rates and get acquainted so that you can be ready to spring into action as the time is coming when things will start popping.

One thing you must remember about the foreign currency exchange companies, they are only too happy to see you make right decisions. They are not there in the role of a guesser, but as a tool for getting you the best currency rates as quickly as possible. If they were not good at it they could not survive.

To know the exact point of the pendulum return, it is necessary to be a clairvoyant. There is no clairvoyant who can give results before the event takes place, because there would not be any bookmakers left. I can confidently report, that there are plenty of rich bookmakers in the world.

So it boils down to taking a calculated risk as to when the pendulum will swing back.

Before taking such a risk, especially in the foreign currency exchange, it is prudent to have some odds in your favour.

Granted that the pendulum might have a little room left to keep going against the dollar, but at this stage of the game it takes a bold person to purchase euros at such a high price even if there could still be some room left for a profit. On the other hand, the dollar is cheap and when it comes to life, not if, there will be room for substantial gain.

Since the odds favour the fact that a pendulum has to swing back sooner or later, the answer is plain to see. Of course it takes nerve and courage, but those are necessary ingredients which point to big money.

Incidentally, the pendulum swings also when it comes to the property market. Make sure you are ready and in touch with a realtor you feel happy with. There are many good ones who have fantastic properties on their books right now.

It is worth mentioning that an analysis as to how most millionaires have amassed their fortunes in the past, shows that property was always the main factor.

The formula we are all aware of says buy cheap and sell high. It does not say buy cheapest and sell highest because there is no way to really know the cheapest and highest points.

I would say the important thing is to make the decision when the time looks good enough to spot a winner, and go for it.  

I remember a friend of mine who, in his prayers, used to ask God to guide him to a winner and also asked him to make sure for it to be a big priced one!

Greed can often spoil the best of chances.

Paul Dubsky

Foreign Currency Exchange Services Ltd.

Foreign currency exchange, the swinging pendulum factor, the US dollar and the euro, foreign currency exchange companies, odds in favour, nerve and courage, realtors and  fantastic property, purchasing at the right time, being greedy can be detrimental.

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