USD vs EURO

[windycorner]

USD in Africa has been the backbone for contracts since the year dot.
Nothing like getting some of those good ol greenbacks in your pocket.

But are times changing, the Euro has been introduced and accepted in many parts of Africa. And its a whole lot more stable than the Dollar.

Example: In feb 2002 the Dollar gave you around 11 Rand (weren't we happy)....dropping to its present plus minus R6-7 to a dollar...40% down.
As for the Euro 2002 was also around R10-1......dropping to R9-EU1 today.
A 10% loss.......

Certainly we who live on this continent would be better off with the Euro....
Question is - when will all the contract/charter companies take the jump...
Should we push for it....Would we be better off.....etc etc.

Tourism - point of fact in many African states - Now start only asking for Euros.
Are we in aviation a bit slow to get the point ????
Are we still at the terminal, when we should be flying high ?
After all, whether it be $$$ or Euros....Its makes the world go round for us all.
But maybe we have the "Choice"......:confused:

[Rude Boy]

If not a currency change then at least an incremental increase in the present currency from time to time. A lot of contract salaries have remained unchanged in their USD amount for years.

[B Sousa]

Life is all about choices and as a Pilot, money is certainly a big headache. You either dont get enough or get slammed by taxes.
You should have the choice as to how your paid, either way in todays world what should be important is where will it be stored safely. As to the Rand/ Dollar, remember it was one/one some years back.
Make sure you have a plan that keeps your money out of Africa and in a place that is not going away anytime soon. Also maybe not all the eggs in one basket.
Remember the point of the exercise is to have some around when you are no longer flying and still wish to eat.

[topoftheloop]

Basically this sounds right and definitely is a reason for a
salary inrease, however main reason is the weakness of the
dollar. Today the USD stands 1.27 against the Euro,
in January 2002 it was 0.9 Euro. But of course, keep your fingers crossed, that will worsening if the Rand continues to climb.

[bear11]

There is a "Eurodollar" market, ie; huge amounts of USD floating around outside of the US that is a powerful argument for expat contracts in that currency, especially in African countries that have oil. There isn't the same amount of Euro floating around, which mitigates against payments in that currency. Any airline or agency paying you will want to either a) pay you in the same currency they're paid in to minimise their currency exposure, or b) if they're paying you in a different currency, they want to pay everyone in that different currency to manage their currency exposure.

So, yeah, I take your point, but you don't have much choice as companies want to limit their exposure - which frequently means that you have to carry the exposure instead! Unfortunately, because the value to you has dropped 40% does not mean that someone else has made money and should compensate you. Don't get obsessed with todays rate, because companies don't work that way - they work out their forward exposure to a currency (usually on a 6 monthly or annual basis) and lock a percentage in at fixed rates to cover themselves and their profits. Don't expect to be able to ask for your pay in Euro one month and USD the next, depending on rates, because it won't happen. B Sousa's comments are sensible, also to add that you're probably better off keeping a Dollar hold account rather than changing it constantly and spend as much as you can in Dollars, and when you change it do it in large amounts and haggle like mad with your bank - it does work, otherwise you get the same crappy rate that anyone walking in off the street with a bottle of suntan lotion in one hand and 10 bucks in the other gets.

[windycorner]

Life indeed is full of changes and choice..
There are huge amounts of dollars in aviation, especially north of the Limpopo..
And I understand the 6mth forward thinking from the company point of view..

However,
Question remains:
Will the dollar weaken as the trend suggests to a point that we will turn around and say "why didnt we enforce change years ago when we saw it coming"

Fact is:
The Euro is gaining a good foothold in Africa, example tourism ....
The dollar is weakening around the globe.......

Another scenario to question....lets say a contract company based in South Africa obtains a UN contract in Serbia/Croatia for example and gets paid in USD as per normal conditions,
Should the crews be paid in Euros as that is what they will live off....

[bear11]

If I knew what the Dollar was going to do, I'd be composing this from a yacht in the Bahamas!

Interesting comment on the possible switch of petrodollars to petroeuro -

http://www.pprune.org/forums/showthread.php?t=243559

typically on contracts, the theory is that you get paid your salary in a convertible currency, plus living allowances or per diems paid in local money.

on balance, I wouldn't fancy having my future in USD - having said that, it's a convertible currency accepted everywhere. The euro looks far more stable now after a dodgy start, and my gut says it will take over, especially if the US continues to fanny around in the Middle East. The key as far as aviators is concerned is what the companies they are working for get paid in, as opposed to what you'd like to be paid in.