- Mar 3, 2009
How about using Cryptocurrency...?
or if you are enough of a gambler (planner?) there's an easier & much more lucrative way to do it.
THIS IS NOT PERSONAL FINANCIAL ADVICE - consultant your financial advisor
You could use a service like OFX to buy the USD.
Step 1: Set up account & ensure you are permitted to transact 'Forwards'.
Step 2: Buy the USD spot and then ask to roll it say 1 month as a forward.
Traditionally this meant you received slightly less USD in the future due to interest rate differentials (US rates below Australian). These days it is flat or US rates below (depending on the maturity). Now virtually the same as far as you're concerned.
Chances are you will be required to lodge a deposit (to cover potential losses if AUD continues to strengthen). Meanwhile you take advantage of the offers by several Australian Banks for 3 or 4 month bonus interest on 'at call' accounts - currently > 1.5%
So if you're buying a big enough amount of USD then you're earning 0.12% a month by entering into a forward contract. Your position is EXACTLY the same as if you'd bought it spot and put it into a USD bank account - if the AUD continues to strengthen then you are effectively losing money, but if you want to lock away a certain amount and are happy at a certain USD/AUD exchange rate - then this may be a good idea.
You are taking all the risks. If say you'd done this in April you could have effectively lost more than 20% compared to what you would receive now.
IF the USD/AUD heads to 0.80 then in hindsight it would be a bad decision to buy now...
Seek your own personal financial advice!