Monday 23 December 2013

FN1. GETTING USE TO CURRENCY EXCHANGE RATE



ITINERARY

It took ages to prepare the itinerary this time because the trip is a little longer than before.  It is seven-day trip, so obviously the itinerary does look longer and much more complicated.  Here is the snapshot.
The difference this time is that all the expenses during the trip is included as additional column so that nothing is overlooked at or 'ter' forget.  All things are considered such as bus fares, KTX tickets, entrance fees to theme parks, etc....


CURRENCY EXCHANGE RATE

One of the important item, especially just few days before the trip is the currency exchange.  Here I spend a little longer to juggle around on the best rate that I could get, and believe it or not, I have found a rather bizzare way to play around with this currency exchange madness.  Whether or not this method works is remain to be seen.  

Here are some tips;

Step 1.  Convert RM to US $

Example: 
Using the rate from my money master http://www.moneymaster.com.my/ 


The exchange rate is at 3.285.  This is of course in the home country's currency, which simply means, 1 US$ is priced at RM3.285.  This is the selling rate from the operator and not the buying rate, eventhough we are actually buying the dollar.  It is always from the point of view of the operator.
So if you want to buy $100 worth of US currency, you have to pay RM328.50.

Step 2. Buy Korean WON in Korea.

Instead of buying directly the WON, we are planning to buy the WON in Korea.  Here is the rational;
Using currency exchange rate at Korea Exchange Bank (KEB); http://fx.keb.co.kr/FER1301C.web

Selling rate: 1040.77
Buying rate: 1077.83
This is the amount to be paid to you in WON for every 1 US$.  This is where I start to get confuse, why on earth is the selling rate lower than buying? 
Somehow, let's follow the usual, since we are selling US$ for the exchange of WON, so from the point of view of the operator (the KEB), it should be buying rate.

The buying rate is at 1077.83 WON for every dollar. 
The  $100 you have in your hand now become 107783.00 WON

Let's now compare with directly exchanging MYR to WON in Malaysia.

Step 3. Convert using the same money exchange as beforehttp://www.moneymaster.com.my/


 Again, check the selling rate (because the operator is 'selling' WON to us).

Selling rate: 3.180RM for 1000 WON
With the same amount of money I need to spend to buy US$, i.e;
                                             US$ 100 = RM328.50
I will get  107783.00 WON (as in step 2);

If I buy WON in Malaysia, I can get only;
                                             (1000/3.18) * 328.5 = 103301 WON

The different: 4482 WON
Not much ha......but that is only for US$100 worth of currency.  You surely will convert much more than that, let's say 10 times more, which will give you an additional of :

44820 WON = RM134 (roughly)

Now you see the money's worth.  No don't thanks me, thanks the weird money exchange rate.

P/s: The real reason I am writing this is to avoid having to explain over and over again...hehe.  


Step 4.  Sell MYR in Korea.

To get even better rate, you should bring MYR to Korea and buy WON there.
Check the rate again from live exchange rate at KEB, Korea.  http://fx.keb.co.kr/FER1301C.web

 Again, look at buying rate, i.e. 339.94 WON for 1MYR.
Now, convert that 328.5MYR that you need to buy $100 into WON,
(328.5 x 339.94) = 111670.29 WON

Lastly,
Compare with other methods from step 2 to step 4;
For $100 worth of money, using:   Step 2 (US$ to WON in Korea): 107783.00 WON
                                                      Step 3 (MYR to WON in KL): 103301.00 WON
                                                      Step 4 (MYR to WON in Korea): 111670.29 WON

Nothing more to explain here, the best is to buy WON in Korea using buying rate of MYR.
But.................be careful of selling MYR in Korea??  Would they buy our money?  Yes the rate is there but do they physically want to buy our money?  They might conveniently just say sorry sir we have enough of MYR currently and we don't intend to buy anymore, and you will be stranded WONless in Korea.......
Better stick to selling US$ in Korea for a meager profit haaa.....

Whatever it is, these are all still remain to be seen.........................

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