Ukeuro75

Hi, I am currently planning to come to Qatar, and it strikes me that my salary could potentially, significantly fluctuate in line with the exchange rate, by upto a few hundred pounds (eg. if exchange rate was £1 - QR 5.9 as opposed to £1 = QR 6.9 for example). I don't really understand how exchange rates work, but I'm worried incase my salary goes down month by month. Having not worked overseas before, I was just wondering how other people managed or dealt with this, or am I worrying unecessarily? Maybe its just a risk I should take? Many thanks in anticipation.

auzdafluff

To be honest, once you're here, you'll soon stop thinking in pounds – unless you have investments/debt back in the UK.

gottheTshirt

Exchange rates are simple. if the pound drops you will get more pounds and if it rises you will get less. There is no method of dealing with this.

Johnnyboy11

Ask for half your salary in Riyals and the other half in Pounds (converted to Riyals at the prevailing exchange rate on your pay day), sorted. My last employer did this and it is fair to both parties.

Over the past two years, the Pound-Riyal exchange rate has fluctuated from about 5.5 to 6.1 with about 5.8 the average.

[J]

dubaiguy2011

How is this any fairer than just getting your salary in Riyals?

Kix

When I worked for Emirates we had exchange rate protection, that worked something like if the pound dropped below a certain point we got a subsidy to take your salary up to that figure.

Guessing that doesn't happen these days.

Meow

You would essentially be hedging your bets as whichever way the exchange wy moves you'd both win and lose.

The fact is that if you work out of the UK and want to send monies back you will be subject to exchange rate fluctuations. Sometimes you win, sometimes you lose. It's all part and parcel of expat life. You become very aware of exchange rates and the best time to move monies. (You can save on currency transfers by using an exchange house and let me know if you want info on that.)

dubaiguy2011

But there is no hedging as the OP said the exchange rate used was the one at the date of payday - i.e. changes every month. Therefore it makes no difference if he got all his dough in Riyals as essentially he is just making a conversion into sterling every month at the then prevailing rate. It would only work if salary was fixed at time of employment - i.e. x riyals and y sterling which isn't what he said (at least not the way I read it).

On another note, I have just signed up for Moneycorp only to be told I still have to make an international transfer of Riyals into their account in the UK to then have the sterling conversaion which to my mind kind of defeats the object... Smart currency have local banks (e.g. in UAE) in which you deposit funds which then they credit you in the UK (thereby avoiding bank charges and offering a better rate). May sound like penny pinching but paying 15 or 20 quid every month on bank transfers adds up over a year...

Other than moneycorp, is there any other (decent) exchange houses that do Riyals into Sterling?

MaserMan

I use an FX company who have a riyal account in London, so I can send money back with no charges and wait until the exchange rate moves in my favour. Only at that time do I incur a management charge.

dubaiguy2011

How do u get your Riyals into the a/c in London with no charges?

MaserMan

The bank sent it and they never levied a charge, different matter when I used to send riyals which where exchanged to pounds though!

Meow

Yes it is, you are betting both ways, that is essentially hedging your bets.

Yes, per my previous post, I can recommend an exchange house if you contact me. No fees and better rates as banks make their money on the exchange rate.

dubaiguy2011

Maser - pls can you ping me the deets of the FX company. I must say I'm not even practising what I preach at the moment, mainly through apathy, but I am just pinging cashola through QNB First. Rates are actually good (for a bank) and my a/c manager does the transfers so I don't pay fees.

A lot of FX companies are a pain in the ass.

Meow

So don't take the professional recommendation from someone who deals with one daily and knows what they are talking about...

UKCityGent

Too many people consider the transaction fees - that is not important (unless your sending small amounts)

When dealing with large amounts there are 2 options i use:

A much easier option to avoid all the hassles is to buy a forward rate contract - with this i know exactly what i am going to recieve from my KWD account - irrespective of what the currency is doing

If you dont need the money you can set yourself a limit to buy/sell the currency - it is a waiting game