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Old 29th Aug 2008, 08:48
  #2804 (permalink)  
Troglodita
 
Join Date: Apr 2008
Location: Out of Africa
Age: 70
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Payroll Clerks and the lessons of History!

Fluctuating currency exchange rates is something one has to learn to live with if one is employed by a foreign company and not paid in one's home currency.
Soggy - how right and occasionally in our favour.

Back in the old days in Bristow Kuala Trengannu we used to receive 100% of our salary and allowances paid in Malaysian Ringgit into personal accounts at Standard Chartered Bank (almost always on time)

The Pound Sterling was on a roll and every month we found more and more Malay Dollars waiting for us - wundahfull!

Some Senior Payroll Clerk (HR wasn't yet invented) thought "wait O!" - I can save the Company a few quid here so they fixed the exchange rate at 5.94 Malay to 1 pound even though the extant rate was over 6:1 and rising.
"Your salary is now going to be the same every month so stop whingeing" they told us.

Almost immediately the mighty Pound began plunging and within months was down to 1 Pound equalled less than 4 Malay Dollars.

Scenario -
1000 pounds at 5.94 arrives in Bank = 5940 ringgit
send 4000 ringgit home = 1000 pounds
Proceed to bar with 1940 "free" ringgit

Even more wundahfull!

The present Pound vs. Dollar deal looks set to head the same way albeit on a smaller scale.

Trogs
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