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Mind the exchange rate Euro - US $
Thread poster: Anjo Sterringa

Anjo Sterringa  Identity Verified
Spain
Local time: 21:12
Member (2003)
English to Dutch
+ ...
May 11, 2004

Dear colleagues,
It is not the fist time someone says this, but it seems to be a practice that is catching on:
European based job posters with European language jobs, offer jobs in US$ rates, just so the rates do not seem as poor as they are.
At the moment you are getting EUR 0.85 to the dollar....
So your $0.05 will turn out to be a meager EUR 0.042. Not to mention your US$0.03 will almost disappear.

It is a pity we cannot pay the rent in US dollars and I wonder what happens if parity is going to be reached once again.

In the meantime, keep an eye on the exchange rate:
www.x-rates.com/d/EUR/USD/graph120.html
and ask such European outsourcers if they buy their daily bread in 'cheap' currency as well, and what exchange rate the cornershop can offer them.

Maybe they are Euro sceptics - could they offer their rates in GB pounds please?

It is a pity there is no Blue Board for doubtful business practices....


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xxxLia Fail  Identity Verified
Spain
Local time: 21:12
Spanish to English
+ ...
Too right Anjo May 11, 2004

A British company was advertising today in ProZ, they referred at one point to EUROS, but they actually offered a rate in US dollars....

Thanks for the reminder:-)

Just to add to the above: a job advertised direct to Platinum members, payment to be in Euros by cheque, but rate quoted in dollars!



[Edited at 2004-05-11 17:19]


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Graciela Carlyle  Identity Verified
United Kingdom
Local time: 20:12
English to Spanish
+ ...
I couldn't agree more!!! May 11, 2004

Anjo Sterringa wrote:
Maybe they are Euro sceptics - could they offer their rates in GB pounds please?
It is a pity there is no Blue Board for doubtful business practices....


Imagine when I'm offered USD 0.04 ... GBP 0.02 !!!!!! and then when I need to replace my computer I don't pay USD 1500-2000, I have to fork out *GBP* 1500-2000...
Sigh...
Grace.


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huntr

Local time: 22:12
English to Hungarian
And again... May 11, 2004

The same here: an Irish company is looking for editors – they indicate the rate in US dollars, while the payment details are as follows:

“Payment is 60 days after invoice, by cheque (in Euro from Ireland), Paypal, or bank transfer. Please note that if your bank account is not in the Euro zone you will be charged bank transfer fees.
Please note that the sum payable is the *gross sum* after VAT or other taxes on your side. “


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Ralf Lemster  Identity Verified
Germany
Local time: 21:12
English to German
+ ...
Transparency May 12, 2004

Hi all,
I agree with the general point made, i.e. the necessity to be aware of, and pay attention to foreign exchange rates: this is a common issue in running an international business (which is what most of us are doing). The currency a job is quoted in is often determined by the invoicing currency vis-à-vis the end customer. As long as the terms are clear from the outset, I cannot see a currency problem per se: USD 0.10 is as bad (or as good, depending on your perspective) as EUR 0.085.

The same here: an Irish company is looking for editors – they indicate the rate in US dollars, while the payment details are as follows:

“Payment is 60 days after invoice, by cheque (in Euro from Ireland), Paypal, or bank transfer. Please note that if your bank account is not in the Euro zone you will be charged bank transfer fees.
Please note that the sum payable is the *gross sum* after VAT or other taxes on your side. “

Personally, I welcome any outsourcer who's so open about things, detailing their terms upfront, rather than keeping quiet about them or just saying that "fees will be deducted" without specifying what these fees will be. Pointing out that you're responsible for any tax liabilities on your side is also ok (although I would have used "excluding" rather than "after").

Best regards, Ralf


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Graciela Carlyle  Identity Verified
United Kingdom
Local time: 20:12
English to Spanish
+ ...
now I have an idea... May 12, 2004

Would it be possible that when someone posts a job, their country of origin is taken as reference to input the rate offered?
It's logical to think that whenever you make a payment abroad, you'll make it in your own currency, and then the bank will be in charge of the conversions.
So the information should be in the poster's own currency and as an option, add the equivalents in other currencies.

My 2 pennies...
Grace.


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Rosa Maria Duenas Rios  Identity Verified
Local time: 15:12
Another two pennies.... May 12, 2004

And what would happen if the price is settled in US dollars, the cheque will be issued in Euros (as in the Irish case mentioned before), and between the time the contract was agreed upon, and the work is delivered, the currency devaluates?

Being used to this type of situation (I have gone through several devaluations in Mexico), my suggestion to anyone who is dealing with two currencies in a contract would be to be very careful in the wording, and to include provisions such as: "quoted price in US Dollars will be paid in EUROS, at the exchange rate of the day in which the contract was signed", or something of the sort, to cover for possible contingencies.


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Anjo Sterringa  Identity Verified
Spain
Local time: 21:12
Member (2003)
English to Dutch
+ ...
TOPIC STARTER
Fix the rate and think again May 13, 2004

When I worked in a business that sold American marine equipment in Europe I used to quote (in Euro of course, that was compulsory) under the condition that the exchange rate would not change more than 2%.

In the examples we have seen I have the feeling it is not necessarily the end client that pays in US$ (and even then, a European outsourcer looking for European translators should work with the Euro currency), but a way of making the rates sound at least a little better. As payment is then in Euro anyway, what is the point?
I would in those cases (rate in dollar, payment in your own currency) establish the rate before starting the work, that is a good idea. It may even make you think you do not want to do a job for that rate....
I don't think you can make it compulsory to quote the rates in the currency the outsourcer is based (I worked for a Chinese agency and was glad they offered a rate in US$!), but alarm bells should start ringing if a European based agency starts offering (low) rates in US$ while paying in Euro. May they be based in Spain, Ireland or the Netherlands. And I do not think the word is 'transparency' here, it is more like a 'smokescreen' in my humble opinion.


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