(June 28, 2016 at 7:39 am)Aractus Wrote:(June 27, 2016 at 10:30 pm)Tiberius Wrote: I currently stand to lose $8,400 a year because the exchange rate tanked. If it goes down much further it'll easily be over $10k.
Not going to see that money again.
You're not losing any money, it's just that your money is not worth as much as it was before. The Forex market is the most liquid market there is, the values of individual currencies are always responding to the market.
I don't care to get into a stupid semantics argument with you, but whether I'm losing money or losing value, the effect is the same. I get paid in GBP, and I live in America, so I have to convert it to USD every month. The same amount of money I earn in GBP now isn't worth as much in USD, so next month I'm getting less than I was this month. That lost value is gone, it's not coming back, because even if the pound recovers, the exchange already happened at the lower rate.
So yeah, I don't really care about the semantics, because effectively what has happened is my paycheck has decreased by 10% in the currency that I actually use on a day to day basis, and whilst I understand that the pound rises and falls against the dollar due to the market, it doesn't usually fall this much (this was it's lowest point in 30 years), and it doesn't usually stay down.
At the moment, the pound isn't looking like it will recover quickly. Some economists are predicting it could reach $1.20 by the end of the year.
