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Thanks for bringing up the currency risk - while certainly not responsible for the entire price difference, the cost for hedging risk against foreign currency i
by sailfast 14y ago
Thanks for bringing up the currency risk - while certainly not responsible for the entire price difference, the cost for hedging risk against foreign currency in Australia has increased quite a bit according to the Australian central bank (from 5-10 basis points to 30-40 - http://www.rba.gov.au/publications/fsr/2010/mar/html/box-b.html http://www.rba.gov.au/publications/fsr/2010/mar/html/box-b.h...) which will definitely put a dent in your profit margin if you start accepting Aussie dollars.
- tomsaffell 14y agoThanks for looking that up and providing some data. But 30-40 basis points = ~0.35%, which is ~1/300th of the ~100% difference in price, so it seems like it's not a significant factor.
- deleted 14y ago[deleted]