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10 reasons wealthy homeowners shouldn't receive welfare House prices surge but falls are common and coming Survey responses on pension eligibility for wealthy homeowners 100 Aussies: five charts on who earns, pays and owns Three good comments from the pension asset test article

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Citi’s guide to foreign exchange

Citi
3 October 2019

Manage and make money with foreign exchange

If you have an investment offshore, travel or send money to relatives abroad you will be accustomed to handling and exchanging currencies.

The price you pay for each transaction will be impacted by movements in the currency you are converting and most importantly, the provider you use to handle the transaction.

For investors, managing currency exposure within a portfolio is an important part of a wealth management plan. It can both protect and enhance returns while improving risk management.

While the foreign exchange market has its own lexicon of terminology for most people it can be navigated easily and transactions managed with a mobile device. It is the cost of the transaction that requires the most attention.

Whether you use foreign exchange while on holidays or as an investment tool it will help to become familiar with how currencies operate by understanding why currencies move up and down in value and how providers determine the rate to charge for a currency transaction. It’s easy to get the basics and this guide will expand on those subjects.

Most viewed in recent weeks

10 reasons wealthy homeowners shouldn't receive welfare

The RBA Governor says rising house prices are due to "the design of our taxation and social security systems". The OECD says "the prolonged boom in house prices has inflated the wealth of many pensioners without impacting their pension eligibility." What's your view?

Graham Hand
15 September 2021

House prices surge but falls are common and coming

We tend to forget that house prices often fall. Direct lending controls are more effective than rate rises because macroprudential limits affect the volume of money for housing leaving business rates untouched.

Ashley Owen
6 October 2021

Survey responses on pension eligibility for wealthy homeowners

The survey drew a fantastic 2,000 responses with over 1,000 comments and polar opposite views on what is good policy. Do most people believe the home should be in the age pension asset test, and what do they say?

Leisa Bell
22 September 2021

100 Aussies: five charts on who earns, pays and owns

Any policy decision needs to recognise who is affected by a change. It pays to check the data on who pays taxes, who owns assets and who earns the income to ensure an equitable and efficient outcome.

Graham Hand
6 October 2021

Three good comments from the pension asset test article

With articles on the pensions assets test read about 40,000 times, 3,500 survey responses and thousands of comments, there was a lot of great reader participation. A few comments added extra insights.

Graham Hand
29 September 2021

Coles no longer happy with the status quo

It used to be Down, Down for prices but the new status quo is Down Down for emissions. Until now, the realm of ESG has been mainly fund managers as 'responsible investors', but companies are now pushing credentials.

Warren Bird
15 September 2021

Latest Updates

Superannuation

The 'Contrast Principle' used by super fund test failures

Rather than compare results against APRA's benchmark, large super funds which failed the YFYS performance test are using another measure such as a CPI+ target, with more favourable results to show their members.

Graham Hand
13 October 2021
6

Property

RBA switched rate priority on house prices versus jobs

RBA Governor, Philip Lowe, says that surging house prices are not as important as full employment, but a previous Governor, Glenn Stevens, had other priorities, putting the "elevated level of house prices" first.

Gareth Aird, Kristina Clifton
13 October 2021
12

Investment strategies

Disruptive innovation and the Tesla valuation debate

Two prominent fund managers with strongly opposing views and techniques. Cathie Wood thinks Tesla is going to US$3,000, Rob Arnott says it's already a bubble at US$750. They debate valuing growth and disruption.

Emma Rapaport
13 October 2021
1

4 key materials for batteries and 9 companies that will benefit

Four key materials are required for battery production as we head towards 30X the number of electric cars. It opens exciting opportunities for Australian companies as the country aims to become a regional hub.

Dawn Kanelleas
13 October 2021
6

Why valuation multiples fail in an exponential world

Estimating the value of a company based on a multiple of earnings is a common investment analysis technique, but it is often useless. Multiples do a poor job of valuing the best growth businesses, like Microsoft.

Amit Nath
13 October 2021
4

Five value chains driving the ‘transition winners’

The ability to adapt to change makes a company more likely to sustain today’s profitability. There are five value chains plus a focus on cashflow and asset growth that the 'transition winners' are adopting.

Hendrik-Jan Boer
13 October 2021
1

Superannuation

Halving super drawdowns helps wealthy retirees most

At the start of COVID, the Government allowed early access to super, but in a strange twist, others were permitted to leave money in tax-advantaged super for another year. It helped the wealthy and should not be repeated.

Professor Kevin Davis
13 October 2021
32

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Citi’s guide to foreign exchange