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foreign currencies

toshitoshi Feels At HomeRegistered Posts: 27
If you transfer funds between a Sterling Bank Account and Euro Bank Account, what rate of exchange should one use? Should there be any gain/loss in the currencies variance ?

Any help will be appreciated :001_wub:


  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    You should use the exchange rate as listed on that day.

    Any difference in the sterling conversion is posted to foreign exchange losses or gains
  • toshitoshi Feels At Home Registered Posts: 27
    foreign exchange

    thanks for the quick reply - So this means that I need to change the rate on the system every time?

    Do you use forward contact rates ? I any advice will be helpful.
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    There is a whole accounting standard dealing with those issues which you will need to get a handle on. Is there a line manager who can help you with this?
  • FeeFee New Member Registered Posts: 13
    Our company uses set rates that are updated on the 1st of each month. If we need to transfer money between currency accounts we use our own internal rate and any difference is coded to forex gains/losses.
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