USD Payment Options When AUD Is Weak

chrismatt on 08/09/2023 - 17:40

I need to make payment in USD. Due to the weak AUD, the amount is going over the roof. Any idea, how to make it less painful? '
I have a few constraints. The payment is time bound that is by October. NAB is predicting the AUD to be strong by the end of the year. I can't wait.

Financial

Comments

  • vodamerc on 08/09/2023 - 17:52
    +11

    Why would anyone pay you more for your AUD than what it's worth?

    • HeWhoKnows on 09/09/2023 - 17:55

      And what would NAB know?
      The way any exchange rate will go is affecting by many factors.

      For the AUD its mainly but not only our interest rates and commodity prices.
      But also how strong or weak the other currency is. In this case the mighty USD.
      And then the China syndrome as well as we are so dependent on The Red Dragon
      Thats why exchange rate predictions are often wrong.

      Earlier this year when the RBA was well behind other contruies in raising interest rates and our mineral export prices where coming down, the AUD should have come tumbling down
      It did come down then went back up….go figure.

      Now that the RBA has raised rates and holding them up (just like The FED) and mineral export prices are holding up and possibly going higher, the AUD is coming down big time both against the USD and the EURO.
      Look out below!

  • dcep on 08/09/2023 - 17:53
    +4

    Nothing you could do unless you want to 'hedge' it with futures contract but that's essentially forex trading, or gambling as some calls it.

    • HeWhoKnows on 09/09/2023 - 17:59

      Only available for large sums of money

  • jv on 08/09/2023 - 18:01
    +2

    Any idea, how to make it less painful?

    Currency hedging.

  • Drakesy on 08/09/2023 - 18:10

    Just go F$@k it and buy crypto

    • Protractor on 08/09/2023 - 18:30

      Yeah because low AUD buys more crypto

  • Jimothy Wongingtons on 08/09/2023 - 18:16
    +1

    I don’t see it increasing meaningfully any time soon

  • JimmyF on 08/09/2023 - 18:17
    +7

    I need to make payment in USD. Due to the weak AUD, the amount is going over the roof. Any idea, how to make it less painful?

    Try entering promo code AUDISUSD during the checkout process for payment, this accepts AUD as USD…..

    LOL But in all seriousiness there is no magic solution to make exchange rates better than what they are.

  • spackbace on 08/09/2023 - 18:30
    -1

    Curious, 7 months later what happened about the teacher?

    • ausdday on 08/09/2023 - 22:37

      he is sending his kid to US boarding school

      • chrismatt on 10/09/2023 - 20:31

        no mate. I have to pay annual renewal fee for a license that's all

    • chrismatt on 09/09/2023 - 11:46

      Complained to the school. As usual that I see around, system protects. It takes another 100 years in Australia to bring any meaningful change IMHO

  • Malik Nasser on 08/09/2023 - 18:41
    +3

    When AUD is strong, buy some USD. So when AUD goes weak you have USD available for USD payments.

    • Protractor on 08/09/2023 - 18:52

      This is why you get the BIG jobs..

      • Malik Nasser on 08/09/2023 - 18:55
        +1

        Due to the weak AUD, the amount is going over the roof.

        Get a higher roof.

        • Protractor on 08/09/2023 - 19:00

          Build below ground?

  • freefall101 on 08/09/2023 - 19:29
    +2

    All you need to do is repair the Chinese building industry so it drives demand back up for Australian ores and metals in order to boost our currency.

    Alternatively you could trigger another round of inflation which will force the RBA to increase interest rates, but in a way that doesn't increase rates overseas. Maybe a major natural disaster? Adelaide or Brisbane would be a good bet, we don't export much from those cities but we do import, so that'd be a twofor.

    Otherwise trashing the USD is the other way to go, if you could convince them to not raise the debt ceiling and default on their debt it'd do the trick.

    • Protractor on 08/09/2023 - 22:44
      -1

      TDLR : Trump/2

  • JIMB0 on 08/09/2023 - 20:52

    Sell some of your assets that are in USD.

    • chrismatt on 10/09/2023 - 20:31

      Don't have any US assets. This is once a year fee

  • AustriaBargain on 08/09/2023 - 21:14
    +2

    It sucks but if you don't already have USD you can't really do anything about it. My server costs have gone up thousands from exchange rate alone. Kinda wish now I was more prudent with my server resources from the start. Or that unused capacity didn't just go to "waste".

  • Ocker on 09/09/2023 - 08:25
    +2

    If you truly want to speculate on the future AUD/USD, and your USD requirement are large enough then take out a USD loan and repay the borrowings when you feel the rate is suitable.
    You could gain some protection from adverse rate movements by taking out a AUD/USD currency option. Either an outright option or a cash neutral cap/collar.

  • susannetsv on 09/09/2023 - 13:03
    +3

    Use a company like Wise to exchange your cash rather than the banks, the difference is quite amazing. Price around

    • dmbminaret on 09/09/2023 - 17:06
      +1

      This. If it's small values eg. 5K, transfer AUD to your wise USD section when the rate is good. Then when it is bad, you can pay out of that and you are effectively paying USD at the rate you put it in at.

      I believe in the US they are in partnership with a bank to provide interest on funds.

      Good idea for overseas holidays with the debit card.

      • chrismatt on 10/09/2023 - 20:30

        I generally don't need this. Only once a year as part of an annual fee.

  • shaybisc on 09/09/2023 - 17:23
    +2

    "NAB is predicting the AUD to be strong by the end of the year."

    Really? Not what I've heard. The consensus seems to be that the pacific peso is headed down the gurgler.

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