Have you made preparations for studying abroad?
Because of the different methods of payment used at home and abroad, natural money is different.
And to study abroad, it is necessary to use the local currency, so the exchange rate should be converted.
Here are some tips for exchanging money.
1. Foreign Exchange Rate We generally refer to the Bank of China foreign exchange rate, which is divided into spot buying rate, cash buying rate, spot selling rate and cash selling rate.
2. Difference between Cash and cash Cash refers to bank deposits obtained and formed by means of international settlement such as checks and remittances.
Cash is money in foreign currency or in the form of bank notes.
To put it bluntly, cash is an invisible number. Cash is money or deposits made of money.
3. Bid Price and Ask price The bid price refers to the price at which the bank buys foreign exchange and, accordingly, the ask price refers to the price at which the bank sells foreign exchange.
Notice that the buyer and seller here is the bank.
If you go to the bank and buy pounds, the bank will use the asking price, because for the bank, when you buy, it is selling.
After the partners know the cash, cash, buy, sell, then the above prices are very easy to explain.
Spot EXCHANGE BUYING PRICE: THE SPOT EXCHANGE THAT THE MEANS SUCH AS CHECK, REMITTANCE GETS HAS IN YOUR ACCOUNT, NEED TO CHANGE RMB WITH THE BANK, REFERENCE SPOT EXCHANGE BUYING PRICE.
Note purchase price: If you have foreign currency cash on hand or cash deposit in your card, you need to exchange RMB with the bank and refer to the note purchase price.
Spot SELLING RATE: YOU NEED TO TRANSFER MONEY TO FOREIGN UNIVERSITIES, REMIT MONEY TO PAY TUITION FEES, NEED TO CHANGE FOREIGN CURRENCY WITH RENMINBI, REFERENCE SPOT SELLING RATE.
Note selling rate: You need to exchange RMB for foreign currency cash and take it with you. Please refer to the note selling rate.
For international students, the selling rate and the selling rate of cash are used more, that is, we use our RMB to buy foreign currency in the bank.
Generally speaking, the selling price of foreign exchange is: cash selling price > spot selling price > spot buying price > Cash buying price. It is not difficult to see the following laws: 1) whether in cash or cash, the selling price is higher than the buying price, that is, the bank always has the difference in the process of foreign exchange transactions, buying at a low price and selling at a high price;
2) The difference between the buying price and the selling price is smaller than the difference between the buying price and the selling price of notes, that is, for us, the spot exchange transaction is more cost-effective than the cash transaction;
3) The selling price of cash is the highest and the buying price of cash is the lowest. That is to say, it is the most expensive to buy cash from the bank and the cheapest to change it into RMB.
Please pay at the cashier’s office at the cashier’s office with cash when possible. Please pay at the cashier’s office at the cashier’s office.
2) Don’t change all the living expenses and tuition fees into cash, go abroad to spend cash, the correct way is to go abroad with only enough cash for the first few weeks, other tuition fees and living expenses, etc. After opening a foreign bank account, let your parents remit to you;
3) Minimize transactions with the school as much as possible. For example, when you return the fee, the school will return the cash (return the original payment account), and when you exchange the cash for RMB, there is a big difference between them.
Student A has to pay a tuition fee of 10,000 pounds to the University of Edinburgh, which is 87,824 yuan if the selling rate is in spot exchange, and 88,017 yuan if it is in cash.
Student B has paid the tuition fee of 10000 Australian dollars to the University of New South Wales. Now he plans to change his study to the University of Melbourne for various reasons, so he will apply for refund of the tuition fee from the University of New South Wales.
Not to mention the new South will not give a full refund, even if not a penny deduction, when the payment of 10,000 Australian dollars according to the spot selling price converted to 50591 yuan, refund at the cash buying price converted to 48,661 yuan, the difference reached 1930 yuan.
As can be seen, foreign exchange rates are not static!
Foreign exchange rates can change from day to day or even from moment to moment. For example, here is the rise and fall (in 100 pounds) of the pound over a seven-day period, a month and a year.
It can be seen that the difference between the highest and lowest exchange rates of the pound is 0.04 / pound within a week. In other words, if student C wants to pay the tuition fee of 10,000 pounds to Durham University, he will have to pay 400 yuan more at the high exchange rate than at the low exchange rate in a week!
Therefore, it is especially reminded that there are many factors that determine the rise and fall of the exchange rate. Even professionals can hardly accurately judge the highest point and the lowest point. As long as you grasp the overall situation, you can expect the exchange rate to fall to the bottom of the payment or exchange, which is not to be met!
