Hooloovoo Posted March 4, 2009 Share Posted March 4, 2009 With the current global financial crisis, we have a tough time in Sweden when it comes to national economy. :( The swedish currency SEK is now very weak, for many years the exchange rate has been around 7 SEK/USD. Last summer it dropped to 6, but from august it has drifted to 9. Today's rate is 9.22 SEK/USD. Since the 1970's the SEK/USD rate has never been higher than 10-11, so i fully expect it to maybe drift further to say 10, then eventually drop back to the "normal" 7. The question is if i should "cash out" my current poker bankroll (which by now is only USD) to SEK, essentially buying cheap SEK. Example: Cashing out $1000 at a rate of 9 SEK/USD gives 9000 SEK. Then play at any site that accepts SEK as a currency (e.g. Unibet, Expekt). Then when the rate drops to 7 SEK/USD, buy $1000 back for 7000 SEK, thus making a net profit of 2000 SEK (=£153). Any thoughts about this? :unsure (Feel free to move this thread if any mod thinks it does not belong here) Quote Link to comment Share on other sites More sharing options...
Hooloovoo Posted March 5, 2009 Author Share Posted March 5, 2009 Re: Converting the bankroll? 50 views and not a single reply? :unsure Quote Link to comment Share on other sites More sharing options...
happyhornet Posted March 5, 2009 Share Posted March 5, 2009 Re: Converting the bankroll? I guess if you are sure that the exchange rate will move in the direction you assume and you are happy to withdraw your bankroll, it is reasonable. I'm not sure I could be either bothered to do it or sure that it would work out.:unsure Quote Link to comment Share on other sites More sharing options...
Guppie Posted March 5, 2009 Share Posted March 5, 2009 Re: Converting the bankroll? I guess if you wont miss the sites it might be worth a try particularily if they have reload bonuses you can take advantage of in the future:unsure Quote Link to comment Share on other sites More sharing options...
GaF Posted March 5, 2009 Share Posted March 5, 2009 Re: Converting the bankroll? I think it's wrong to assume that values will return to what seems like historical norms - currency values are entirely nominal - they're a function of many things such as interest rates, inflation, etc and so it's normal and correct that real currency exchange rates will shift over time - sure short term movements may be over exagerated by speculators - but if you're not an economist your chances of predicting future rates better than the market must be virtually nil - the best estimate of tomorrows exchange rate is probably the current exchange rate (or maybe some futures rates) - but basically what the market is at now. Trading in currency (i.e. selling now with the intention of buying back later at a better rate) is unlikely to be profitable (over enough trades - but effectively random over few trades) - I think your best option is to minimise your exposure to foreign currency - keep in USD what you NEED in USD and keep everything else in SEK. Quote Link to comment Share on other sites More sharing options...
AJ Posted March 5, 2009 Share Posted March 5, 2009 Re: Converting the bankroll? Your situation is pretty close to mine. My poker bankroll is in USD, and my local currencey the NZD is very weak just now, buying $0.50 US, compared to US$0.70 last year. I just take the view that I keep my entire poker bankroll in USD, as it's a long term project for me; but whenever I withdraw to pay for something like a holiday or a new bike it costs me less than it did before. Quote Link to comment Share on other sites More sharing options...
slapdash Posted March 5, 2009 Share Posted March 5, 2009 Re: Converting the bankroll? 50 views and not a single reply? :unsure To be fair, I doubt many (any?) of us have an informed opinion on how the Swedish currency is likely to change against other currencies in the future, which is basically what your question is about. Quote Link to comment Share on other sites More sharing options...
Hooloovoo Posted March 5, 2009 Author Share Posted March 5, 2009 Re: Converting the bankroll? To be fair' date=' I doubt many (any?) of us have an informed opinion on how the Swedish currency is likely to change against other currencies in the future, which is basically what your question is about.[/quote'] In fact that's not what my question was about. I don't expect anyone here to have an opinion about the Swedish currency. I was curious as to whether anyone had done anything similar really. Quote Link to comment Share on other sites More sharing options...
mattywallace121 Posted March 6, 2009 Share Posted March 6, 2009 Re: Converting the bankroll? If you believe the rate will return to the 'norm' then go for it, not many people can predict the market. If you dont mind changing from a site that you are familiar with to a different one then yes, as advised take advantage of deposit bonuses and the like, just could be a while before your currency hits its old rate, if you dont mind, what have you got to lose? Quote Link to comment Share on other sites More sharing options...
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