Welcome to the Matrix, Temporal

[krokodilizm]

I have come up with another algorithm to remember the effect of currency movement on the parent’s profit/loss depending on whether the company has net monetary assets/liabilities. I have used the following conventions:

• A positive (+) denotes currency appreciation, an asset, and a gain
• A negative (-) denotes currency depreciation, a liability and a loss
• Negative times negative=positive, positive times negative is negative

This one is not difficult to remember, given that most companies usually have a net monetary liability. Still, the logic used is very simple and lightweight so maybe it’s worth remembering the table.

 

[Flashback]

This concept is straigforward for us who are doing business and live with assets and borrowings related to Eur and Eur isn’t still domicile currency. I ran away from borrowings in CHF just in the last minute before its brutal appreciation.

 

[krokodilizm]

Flashback wrote:
This concept is straigforward for us who are doing business and live with assets and borrowings related to Eur and Eur isn’t still domicile currency. I ran away from borrowings in CHF just in the last minute before its brutal appreciation.

Beginner’s luck!

 

[Flashback]

This is not the end of story. This was when Lehman went to bankruptcy. Short term IR on interbank market in my country were extremely high. I negotiated closing 70 % of received loan by once off payment without penalty and under favorable conditions, the rest was converted to Eur.
Anyway, I lost my money on my cyclic stock portoflio (fu..n Greek dry cargo shipping companies). Since then I don’t like the Greeks..