Questions about selling US dollars

Business Money
1

I’m useless with finances, living hand to mouth each month, but the wife is considerably more sensible, and has been ferreting away small amounts over the years.
She has US$6000, which currently will get her NT$180k.
Admittedly, it’s not a lot of money, but it’s a small fortune for us, considering she’s out of a job due to that pesky Covid thingie.

My questions for all the clever smart-with-money people: Is there an anticipation of a big crash in the US economy, where the money will lose a lot of its value? Should we cash in the 180k now?

2

Is there an anticipation of a big crash in the US economy, where the money will lose a lot of its value? Should we cash in the 180k now?

If anyone truly could predict these kind of developments, they would be rich already. Truth is: No one (without having access to insider information - and acting upon them would be illegal) can really know for sure.

So if you need the money now, it might be a good idea to use it. You should definitely pay attention to fees and stuff (maybe it’s cheaper exchanging in bulk?).

If you feel more comfortable doing so, you can also exchange small amounts every week or month if you feel the exchange rate is really “good” right now. Or just exchange as much as you need when you need it.

But keeping the money or exchanging it all just because anticipating a big crash or not? That’s just speculation.

Maybe just to put it in a different way: If you had NT$180k now - would you run to the closest bank and exchange it for USD? If not, just sell the USD and don’t worry about the exchange rate anymore.

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3

The USD is on a 1 year trend of losing value against the TWD.

Hard to predict US economy, but Trump and the others will do crazy stuff to pump up the USD and most countries want the USD to be stable.

Can expect the USD to start gaining value against the TWD eventually but hard to predict when under virus situation and how much. Could be awhile.

Can see 10 months ago, would of got around 32 TWD for every USD. Now, will get around 29 TWD for every USD.

It will eventually change to be advantageous.

Good idea to look at 5 year or 10 year trends and decide if/when to buy TWD.

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4

Invest in long term bonds and high yield CDs. If you’re freaked about about paper money convert it into gold or diamonds.

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5

There has already been a big crash of the US economy, but the USD has held up well despite all predictions otherwise. Same things were being said in 2008-09 and the USD was fine. If it ever loses its reserve currency status, things may change but I doubt that happens anytime soon because of TINA (there is no alternative).

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6

Well said!

7

US FED said labor market bad for next several years

8

In business we need USD to purchase and payment always in USD though we are always worried about the ups and down.

In personal matters - I still keep some of $ and NTD

9

If it’s in US$ than keep it if not needed.