Cambodia Banks

[Beachlover]

Sound advice, Dboy, particularly about factoring inflation into the interest rate.

Sound advice, Dboy, particularly about factoring inflation into the interest rate.

Hi,

Inflation,without getting into it all is relative. It depends usually on what you are factoring in.

I am interested in the comment from DBoy regards the switching currencies and long/short base which I did not fully understand.I would appreciate if you could go into that a little more.

Interestingly enough,Barclays in the UK are now offering 3% on term deposits for 1 year. This makes the Cambodian rates now not seem that ridiculous.

I have written to ANZ in Australia and await their response,as to whether it is a joint venture in Cambodia and are they following the same set of rules and regulations applied in OZ, as well as any Cambodian rules.

[Dboy]

I am interested in the comment from DBoy regards the switching currencies and long/short base which I did not fully understand.I would appreciate if you could go into that a little more.

Simple, really. If you use your "home" currency to buy another currency, then you are "short" yours and "long" the foreign. All currency transactions are like this, since you are always exchanging one currency for another. There is risk here though, if the foreign account is not denominated in your home currency. Assuming we are talking about this USD denominated Cambodian account, if the value of USD falls against GBP (assuming that to be your home currency), then you will suffer a loss in the currency translation. And of course if USD rises against GBP then that would be profit to you, in addition to the interest earned.

Dboy

Dboy,

Thank you,got it. :notworthy: