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EvilPie
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« Reply #30 on: February 03, 2010, 01:28:52 PM » |
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If I borrowed money I wouldn't want the other person to lose out so I'd make sure that whatever happened it would be in their favour.
If they asked for $1000 back I would get it out of the bank and give them exactly that. If they wanted it in sterling they could have it at the rate they paid or the rate it was worth today.
They were the one doing me the favour by lending me the money so if there's anything to be gained it should be towards them.
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Motivational speeches at their best:
"Because thats what living is, the 6 inches in front of your face......" - Patrick Leonard - 10th May 2015
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sweet potata!
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« Reply #31 on: February 03, 2010, 01:31:15 PM » |
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If I borrowed money I wouldn't want the other person to lose out so I'd make sure that whatever happened it would be in their favour.
If they asked for $1000 back I would get it out of the bank and give them exactly that. If they wanted it in sterling they could have it at the rate they paid or the rate it was worth today.
They were the one doing me the favour by lending me the money so if there's anything to be gained it should be towards them.
I agree |
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ScottMGee
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« Reply #32 on: February 03, 2010, 01:32:57 PM » |
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They were the one doing me the favour by lending me the money so if there's anything to be gained it should be towards them. Definitely, unless they were going to keep the $1,000 in their safe until their next holiday, you should repay them what it cost them in £ to lend you the original $1,000. |
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Moskvich
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« Reply #33 on: February 03, 2010, 01:33:16 PM » |
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Should be the higher £ value of the two amounts, whichever that happens to be - the lender shouldn't be able to lose out. Money's not like a PS3 - you can't put a PS3 in a bank account/stock market etc. Things basically always depreciate in value while money always has the potential for appreciation, depending on what you do with it - and you don't know what the lender was going to do with it - so the lender's already doing you a favour by lending interest-free.
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thediceman
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« Reply #34 on: February 03, 2010, 01:33:21 PM » |
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if it depreciates in the time that's just tough luck.
And if it appreciates then you would pay the extra ? you wouldn't be paying extra, you're paying back what you borrowed So your looking to employ a system that means you take advantage of a saving but not employ that same system if it means you have a liability. Fact is people will use the downturn to justify saving them money and sod the person losing money who has done them a favour. So I borrow money from you but will only pay it back until when the exchange rate is in my favour. This means you lose out as it cost you more. Fair  ? |
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« Last Edit: February 03, 2010, 01:36:10 PM by thediceman »
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gatso
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« Reply #35 on: February 03, 2010, 01:33:44 PM » |
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let's say you borrowed dollars from a spaniard and then the pound strengthened a lot against the dollar
and the euro while the euro strengthened slightly against the dollar
are you going to pay him back in
a) pounds
b) euro
c) dollar
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If you get to the yeasty clunge you've gone too far
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gatso
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« Reply #36 on: February 03, 2010, 01:36:05 PM » |
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you wouldn't be paying extra, you're paying back what you borrowed
Your looking to employ a system that means you advantage of saving but not employ that same system if it means you have a liability. quite how you get that from what I've written I have no idea I'd pay back in dollars regardless of what's happened to the exchange rate |
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If you get to the yeasty clunge you've gone too far
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Karabiner
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« Reply #37 on: February 03, 2010, 01:36:39 PM » |
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let's say you borrowed dollars from a spaniard and then the pound strengthened a lot against the dollar
and the euro while the euro strengthened slightly against the dollar
are you going to pay him back in
a) pounds
b) euro
c) dollar
What if the original loan had been in pesetas |
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"Golf is deceptively simple and endlessly complicated. It satisfies the soul and frustrates the intellect. It is at the same time maddening and rewarding and it is without a doubt the greatest game that mankind has ever invented." - Arnold Palmer aka The King.
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gatso
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« Reply #38 on: February 03, 2010, 01:38:27 PM » |
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let's say you borrowed dollars from a spaniard and then the pound strengthened a lot against the dollar
and the euro while the euro strengthened slightly against the dollar
are you going to pay him back in
a) pounds
b) euro
c) dollar
What if the original loan had been in pesetas pay him in guineas |
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If you get to the yeasty clunge you've gone too far
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sovietsong
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« Reply #39 on: February 03, 2010, 01:39:39 PM » |
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when you take the $1k agree how it will be paid back, write up a contract and make sure you get witnesses to sign it, maybe get a lawyer in to make sure everything is above board.
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In the category of Funniest Poster I nominate sovietsong. - mantis 21/12/2012
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Cf
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« Reply #40 on: February 03, 2010, 01:42:24 PM » |
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Argh this is all tilting me.
At the end of the day you borrowed $1000. Assuming the loan is interest free and nothing else funky has been agreed then you owe him back $1000. So if he asks for it just say "is $ fine?". If not then he can have it in any currency of his choice, and you'll go and exchange the $1000 for him, which is obviously in today's rate.
It's a risk you both take if you're lending money in a foreign currency, no matter who benefits.
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thediceman
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« Reply #41 on: February 03, 2010, 01:42:52 PM » |
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let's say you borrowed dollars from a spaniard and then the pound strengthened a lot against the dollar
and the euro while the euro strengthened slightly against the dollar
are you going to pay him back in
a) pounds
b) euro
c) dollar
I neither borrow or loan money but if I did I would clearly set out the terms at the beginning. If the terms were not set out at the time and then the lender is willing to exceptt the money in $ then fine but as for this thread this wasn't stated as an option, it's about what exchange rate should be used, the one at the time the money was leant or the current favourable one. I would ensure that the person who had done me a favour would not suffer any financial loss. |
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« Last Edit: February 03, 2010, 01:45:27 PM by thediceman »
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EvilPie
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« Reply #42 on: February 03, 2010, 01:45:35 PM » |
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Whilst in Zimbabwe a couple of years back I was kind enough to lend a guy $1 in their local currency.
Poor fella now owes me $320 billion.
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Motivational speeches at their best:
"Because thats what living is, the 6 inches in front of your face......" - Patrick Leonard - 10th May 2015
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gatso
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« Reply #43 on: February 03, 2010, 01:50:42 PM » |
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Whilst in Zimbabwe a couple of years back I was kind enough to lend a guy $1 in their local currency.
Poor fella now owes me $320 billion.
as they no longer have their own currency and now use the us$ I'm sure he'll be delighted to give you a cheque for z$320billion as it's worth exactly 1usd less than he borrowed from you |
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If you get to the yeasty clunge you've gone too far
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Cf
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« Reply #44 on: February 03, 2010, 01:53:05 PM » |
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let's say you borrowed dollars from a spaniard and then the pound strengthened a lot against the dollar
and the euro while the euro strengthened slightly against the dollar
are you going to pay him back in
a) pounds
b) euro
c) dollar
I neither borrow or loan money but if I did I would clearly set out the terms at the beginning. If the terms were not set out at the time and then the lender is willing to exceptt the money in $ then fine but as for this thread this wasn't stated as an option, it's about what exchange rate should be used, the one at the time the money was leant or the current favourable one. I would ensure that the person who had done me a favour would not suffer any financial loss. If I use today's rate then they don't suffer any financial loss. Nor do I. If I use the rate when borrowed then they gain money, and I lose money. Or if the rate had improved then they lose money and I gain money. At the start I borrow $1000. If I use today's exchange rate I pay them back £600 = $1000. If I use the rate when borrowed then I pay them back £800 = >~$1330. They've gained $330, and I've just been hit with a daft amount of interest. What does £ have to do with anything? You didn't borrow £800, you borrowed $1000. |
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