CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 26 April 2010
Ok, if he wants to buy GBP, he'll get 10000/2.3326 = 4287.06....
Sumi T S
(Final Student)
(55 Points)
Replied 26 April 2010
Manmohan ACA, CS
(Chartered Accountant )
(14243 Points)
Replied 26 April 2010
answer will be 10,000/2.3295 =4292.767
Sumi T S
(Final Student)
(55 Points)
Replied 26 April 2010
Manmohan ACA, CS
(Chartered Accountant )
(14243 Points)
Replied 26 April 2010
always use a simple trick
if rate is given
currency A / currency B = X / Y
then
if you want to buy currency B (i.e. sell currency A) use the ask rate(i.e the right one )Y in our case .
and if you want to buy currency A (i.e. sell currency B) use the bid rate (i.e the left one ) X in our case .
in your case rate given is GBP/CHF 2.3295 - 2.3326 and you want to buy GBP use the left rate i.e. 2.3295
this rule is applicable in all cases in entire forex chapter
Sumi T S
(Final Student)
(55 Points)
Replied 26 April 2010
Hardeep
(CA Final Student)
(61 Points)
Replied 26 April 2010
Hi Lakshmi,
If the equation is given wihout equal to sign as per ur ist query :-exchange rates are: GBP/CHF 2.3295 - 2.3326
that means 1CHF=GBP 2.3295-2.23326 i.e GBP per CHF
and here we have to buy GBP so sell CHF using rate 2.3295
If equation had been given with eual to (=) sign like GBP/CHF = 2.3295 - 2.3326
then GBP =CHF 2.3295-2.3326
As far as ur 2nd query is concerned :-the quote is $1.5455 - 1.5609 i.e that means 1GBP =$1.5455-1.5609. we have to buy $ or we can say we have to sell GBP and rate will be 1.5455
.
We uses buy/sell rates by looking whether we have to buy unit currency or sell. Here unit currency is GBP. You are using buying rate for $ which u can use only after converting $ into unit currency i.e 1$ = GBP1/1.5609-1/1.5455.
Sumi T S
(Final Student)
(55 Points)
Replied 26 April 2010
CAclubindia
