Posted by
DaHKGKid
17 yrs ago
Hello All,
I have two offers to move to either Singapore or KL. The current offers are to match my salary in HK in USD.
Being that both of these countries have own currencies NOT PEGGED to the USD like HK, they have matched my current salary even though the USD is 10% greater than late 2008.
My question is, if the bottom falls out of the USD which I believe it will by mid this year when I relocate, I will loose the difference if paid in USD?
How shall I protect the negotiated value now? Should I ask for the current USD level in equivelent local currency on the date of signing?
Any clauses? This is a tough time for currencies anywhere!
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That's a good theory but in practice and reality in my time frame I'm looking at SING Dollar or Malay Ringitt.
Can anyone shed some light on my situation today!!
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I dont see any reason why you dont stick to SING DOLLAR. Singapore is a comparately stable country and it seems ythat they are less affected by the global credit crunch. If you hv no confidence in either US$ or HKD, stick to SING DOLLAR.
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Thanks Mighty. As with the USD-HKD I believe they are at the top of the their trading range with downside risk as explained in the coming two quarters. I shall ask for the equivalent now in SING.
Is there anyone who knows a good way of having this written into the contract however if the offer is in USD?
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There were comments in today's SCMP (or possibly FT) about Singapore possibly devaluing the Sing dollar. I understand they are currently 'traded in a narrowish band against a 'secret' basket of currencies. Given how much the S$ has strengthened against the pound, I'm guessing Sterling is not in the basket.
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It probably is in the basket
Sterling is just at 7 and a half year lows against nearly every major currency, which is why the sing has strengthened against it.
It would be a little bit strange a for a managed float using a basket not to be able to reflect that kind of movement even if it is not as magnified as it ordinarily would be had they traded purely as a pair.
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Yes heard the same thing today about SING D getting a one time devaluation, will see after the budget meeting today. Offer will come formally in about 2 weeks so have some time.
I am still requesting how the offer line item should read.
Since my start date will be approx April maybe the offer is written as such where the "Equivalent of USD in SING dollars at time of employment".
Any thoughts?
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Don't you have a materially adverse clause in the contract?
If your income collapses against your home country income or the dollar say, then there should be some kind of automatic adjustment based on a formula. It happens in my industry, for guys who work in countries that are not pegged to the US dollar.
A lot of time they get paid in US dollar regardless, but it depends on how senior the person is, they get an income protection clause when guys move from just New York to London in my business.
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DG, good point! I guess its a tough call given the USD still reigns our world currency but if it devalues as suggested then better to be in some other currency.
I guess as long as the offer comes in local dollars to the country of employment the only negative is picking one you feel will hold its global value.
I can see right now how the adverse clause will work especially when the Sterling is getting battered vs. the USD.
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