Fossils Posted February 16, 2009 Share Posted February 16, 2009 Why am I not surprised? http://www.manxradio.com/newsread.aspx?id=33112 Link to comment Share on other sites More sharing options...
thebees Posted February 16, 2009 Share Posted February 16, 2009 So, they didn't buy Euros last year? Imagine if they had bought them and the FX rate had gone the other way, this is a bit of a 'Why didn't you use your crystal ball?' problem. I would more be asking why they agreed to pay for it in a currency that is not the local tender, that seems to be the root of the shambles. Pah £2,000,000.00 loss on an FX deal, its laughable, how valueless is money going to get? I have to say I would rather be in the Isle of Man than the UK atm, and if the noises about the poorer members of the EUC (or whatever it is) are right, if the govt hold off buying the Euros then the pound may well strengthen, if I ruled the IOM I would suggest PAYG euro buying. Link to comment Share on other sites More sharing options...
%age Posted February 16, 2009 Share Posted February 16, 2009 I'll give the youngfella Watterson his due for raising this. It is a great pity he wasn't around for the Hospital contract. Oh, and the IRIS contract...... . . . and as for the MEA. Well fuck me rigid, the last thing the Government needed was someone who could add up or use a fucken simple calculator. From the Manx Radio report, this made me laugh though: I think someone ought to be really embarrassed about this, whether it's down at the Department of Transport, or in the Treasury. This is why I asked the question. Embarassed or admit to being a tw@t and a fuckwit? No fucken chance. There is more likely to have been a nice little pay rise and a promotion. In Japan they would do that Hari Kiri or whatever it is called, if a job went over budget. On the Isle of Man it's a case of doubles all round. Roll on the next big multi-million pound financial fuck-up. Link to comment Share on other sites More sharing options...
Lost Login Posted February 16, 2009 Share Posted February 16, 2009 I would not have expected them to have bought a fixed rate last year as the FX rate might have as you say could have gone the other way. What I would have expected them to do would have been to "hedge" their position where for a much smaller amount of money they could have guaranteed the maximum they would have paid in sterling for Euros but also taken advantage of any currency move in their favour. So, they didn't buy Euros last year? Imagine if they had bought them and the FX rate had gone the other way, this is a bit of a 'Why didn't you use your crystal ball?' problem. I would more be asking why they agreed to pay for it in a currency that is not the local tender, that seems to be the root of the shambles. Pah £2,000,000.00 loss on an FX deal, its laughable, how valueless is money going to get? I have to say I would rather be in the Isle of Man than the UK atm, and if the noises about the poorer members of the EUC (or whatever it is) are right, if the govt hold off buying the Euros then the pound may well strengthen, if I ruled the IOM I would suggest PAYG euro buying. Link to comment Share on other sites More sharing options...
When Skies Are Grey Posted February 16, 2009 Share Posted February 16, 2009 this is a bit of a 'Why didn't you use your crystal ball?' problem. Paging Sebrof....... Link to comment Share on other sites More sharing options...
Tempus Fugit Posted February 16, 2009 Share Posted February 16, 2009 do keep up ! http://www.manxforums.com/forums/index.php...st&p=395569 Link to comment Share on other sites More sharing options...
Sebrof Posted February 16, 2009 Share Posted February 16, 2009 this is a bit of a 'Why didn't you use your crystal ball?' problem. Paging Sebrof....... No need for crystal balls, or me. As Lost Login says, you hedge against currency fluctuations, or better still, use your own currency. That transfers the exchange risk to the supplier, so he will charge a bit more, but nothing like as much as it has actually cost. Young Watty has asked the right question, but he doesn't seem to know exactly what should have been done. Buying Euros would not have been good, as the rate might have gone the other way. The fact that no hedging was done might be down to one of two things: 1 They tried, but the markets were so volatile that the cost, which is usually quite small, might have appeared (without the benefit of hindsight) to have been too great. 2 They just didn't think about it. S Link to comment Share on other sites More sharing options...
Lee54 Posted February 16, 2009 Share Posted February 16, 2009 The Government done well on the NSC when paying in euros,swings and roundabouts Link to comment Share on other sites More sharing options...
Pragmatopian Posted February 16, 2009 Share Posted February 16, 2009 The fact that no hedging was done might be down to one of two things: 1 They tried, but the markets were so volatile that the cost, which is usually quite small, might have appeared (without the benefit of hindsight) to have been too great. 2 They just didn't think about it. S I'm putting my money on Option 2! Link to comment Share on other sites More sharing options...
Fossils Posted February 19, 2009 Author Share Posted February 19, 2009 The fact that no hedging was done might be down to one of two things: 1 They tried, but the markets were so volatile that the cost, which is usually quite small, might have appeared (without the benefit of hindsight) to have been too great. 2 They just didn't think about it. S I'm putting my money on Option 2! You win. Link to comment Share on other sites More sharing options...
Albert Tatlock Posted February 19, 2009 Share Posted February 19, 2009 Like the DTL the DOTs only function is to spend our money on stuff and its fulfilled its role fully in this respect. Its about time Allan Bell put his foot down with all these departments and tell them to function like proper businesses or ship out as when money is tight and were all felling the pinch this just looks like crass stupidity. I think that's happened in a roundabout way this time around. Link to comment Share on other sites More sharing options...
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