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should my parents convert the money for my school fees to US dollars now?

screwitlahscrewitlah Registered User Posts: 1,980 Senior Member
edited May 2008 in International Students
I won't be attending college till Sep 2009. Should we take advantage of the USD's currently weak exchange rates vs the Singapore dollar (SGD), and convert adequate SGD to USD to pay for all 4 years of college tuition now, instead of later? I have a feeling the current exchange rate (1 USD = 1.37 SGD and rising) will be the lowest for some time. Or should I wait for it to drop again?
Post edited by screwitlah on

Replies to: should my parents convert the money for my school fees to US dollars now?

  • frankchnfrankchn Registered User Posts: 1,266 Senior Member
    If I knew the answer to that question, I'd be rich =p.
  • b@r!umb@r!um Registered User Posts: 10,171 Senior Member
    I had the same thought some time ago. I exchanged most of my savings for 1.24 USD/EUR. When I actually left the country, I would have gotten 1.36 USD/EUR and now I would get 1.55 USD/EUR. Oh well...

    Nobody can really help you with that decision. Even economics don't know what the exchange rate will do a year from now - if they did, they would all be rich by now :-)

    Edit: x-posted with frankchn
  • screwitlahscrewitlah Registered User Posts: 1,980 Senior Member
    hmmmm of course, i'm not asking you guys to make a long-term prediction of trends - just a one-time one with regard to the current pseudo-recession in the US. /i think the recession is likely to end soon. what do you guys think :D
  • frankchnfrankchn Registered User Posts: 1,266 Senior Member
    Is there a strong correlation between the strength of the dollar and the state of the US economy?
  • b@r!umb@r!um Registered User Posts: 10,171 Senior Member
    I like the word pseudo-recession :)
  • b@r!umb@r!um Registered User Posts: 10,171 Senior Member
    I think that the US is so dependent on imports right now that they cannot afford to let the value of their currency rise again. If imports of food, electronics, cards, clothing and oil suddenly were more expensive, the country would be headed for a real recession! If at all, the American government would have an interest to lower the value of their currency even more (-> better for us internationals!)
  • frankchnfrankchn Registered User Posts: 1,266 Senior Member
    Isn't a fall in value of their currency bad for imports? That is, if they want their imports to be cheaper, they should make their currency stronger.

    In 2003 (unsure about the actual time), 1 USD could buy approximately 1 EUR worth of goods from Europe, but now 1 USD can only buy 0.64 EUR worth of goods. However, I doubt the value of the USD is something that the US government could control anyway (well maybe apart from the Fed, but the Fed is too busy managing their way out of the "psuedo-recession" and the credit crisis right now).
  • frankchnfrankchn Registered User Posts: 1,266 Senior Member
    As for the original question, more things to consider are the relative interest rates you will get parking your funds in USD instead of alternative currencies like SGD or even NZD or AUD (or perhaps even parking it in dual currency deposits, which is really the bank writing then selling an currency option on deposit at the predetermined strike rate and returning some of the money from selling that option to you as "interest" - see Dual currency deposit - Wikipedia, the free encyclopedia for more information).
  • screwitlahscrewitlah Registered User Posts: 1,980 Senior Member
    whoa you guys are like some economics gods lol :)
  • clam_chowderclam_chowder Registered User Posts: 186 Junior Member
    i think it's best to start to save money for your education---start from now...
    either you save it with SGD or USD... as for my parents..they bought some USD everytime it got lower..(you'll never know when it will get that low..)
    so.. it's really like gambling.. hope youll get a good price..
  • b@r!umb@r!um Registered User Posts: 10,171 Senior Member
    frankchn, you are right. A weak currency is bad for imports but good for exports. I got that mixed up. Never mind :)
  • vicentevicente Registered User Posts: 130 Junior Member
    In some ways this is good, in some ways this is bad, but the U.S. government allows students to work off-campus if they can prove that a weakening local currency has made them unable to pay tuition.
  • b@r!umb@r!um Registered User Posts: 10,171 Senior Member
    Well yes, but it does not apply to the OP's question.
This discussion has been closed.