Jul 22, 2008

money



Assalamualaikum wa rahmatullahi wa barakatuh

we have had stacks of money given to us at the pre-departure meeting. it seems that most of us are totally confused how we should manage it. these are some important definitions to take note.

money/ Ñ 'mVni; NAmE Ñ /
noun

1[U]what you earn by working or selling things, and
use to buy things:to borrow / save / spend / earn money

Ç How much money is there in my account?
Ç Can you lend me some money until tomorrow?
Ç Be careful with that—it cost a lot of money.

2[U] coins or paper notes:I counted the money carefully.
Ç Where can I change my money into dollars?

money can be presented by various kind of currencies. what is currency?

cur·rency / Ñ 'kVrJnsi; NAmE Ñ
'k3;r-/ noun (pl. -ies)

1[C, U] the system of money that a country uses:trading in foreign currencies
Ç a single European currency
Ç You’ll need some cash in local currency but you can also use your credit card.

in malaysia, we use ringgit. in india, rupee. the most common currency (which is accepted worldwide) is obviously US dollar. every country has its own currency.

money is one of the most essential things to live. without money, we can't afford to buy food and drinks, clothes, etc.

in case if we are short of money, than money transfer from family members (i.e. parents) is needed, which is called telegraphic transfer.

Telegraphic transfer
From Wikipedia, the free encyclopedia

The term Telegraphic Transfer or Telex Transfer, often abbreviated to 'TT', is a electronic means of transferring funds overseas. A transfer charge is collected while sending money.
A banking term commonly call "T/T," meaning a cable message from one bank to another in order to effect the transfer of money.

for transfering money between Malaysia and India, the only recognised agent is Western Union. available at all CIMB branches.

huge of the portions that we received from MARA was traveller's cheque. what is it?

A traveler's cheque

(also traveller's cheque, travellers cheque, traveler's check, or travelers check) is a preprinted, fixed-amount cheque designed to allow the person signing it to make an unconditional payment to someone else as a result of having paid the issuer for
that privilege.

As a traveler's cheque can usually be replaced if lost or stolen, they are often used by people on vacation in place of cash.
Traveler's cheques are available in several currencies, denominations usually being 20, 50, or 100 of whatever currency, and are usually sold in pads of five or ten
cheques, e.g., 5 x €20 for €100.
Traveler's cheques do not expire so unused cheques can be kept by the purchaser to spend at any time in the future.
The purchaser of a supply of traveler's cheques effectively gives an interest-free
loan to the issuer, which is why it is common for banks to sell them "commission
free" to their customers. The commission, where it is charged, is usually 1% of
the total face value sold.

to convert the T/C into cash, it is better to do it at currency changes kiosk, as there is no commission charged. because they earn profit through foreign currency exchanges. banks do charge commissions.

many has asked me, what currency should we bring along?

the answer is, ALL!

- ringgit malaysia = for emergency cases in KLIA, but just around RM100-RM200 should be fine.
- US dollar = it is accepted worldwide, so it is advisable to cash in a part of it and the other part, kept in the form of traveller's cheque.
- indian rupee = the currency that is valid throughout india. according to nugrahan, bring along rp10,000 at least. thus, rp10,000-rp20,000 is ok. the more the better.

Q : the hostel fees are in USD, but the seniors said that we need to pay in rupees???

A : in theory, if we convert USD800 to rupees immediately in malaysia, let say around rp34,000, than we might end up paying additional rupees more, because the foreign exchange in india maybe different. let say their USD800 is equivalent to rp35,000. we will accomodate a loss of rp1,000 doesn't it? or in other words, we pay USD823 instead of USD800.

thus, bring the USD800 in cash to avoid being a victim of currency fluctuations.

any vital information about our departure, JJM, bapuji, india, hostel etc. will be published in this blog insya allah.

wallahu a'lam.

useful links:

http://www.xe.com/
http://www.westernunion.com/
http://www.cimbclicks.com.my/
http://www.wikipedia.org/

1 comment:

nanaaa said...

hehe this is very useful i would say :p i would go blind pegang duit byk2 and thought of shops je. hoho