Dollar Value Up
Despite the economic crisis, or perhaps because of it, the US dollar is going up in value affecting the price of goods and services everywhere. For Americans traveling overseas the strong dollar has meant cheaper hotels, meals, and a wise traveler would have a Forex converter as part of their traveling gear.
Entertainers Need Forex Converters Too
American entertainers performing overseas find themselves in a unique position due to the dollar's strength. Depending on how and when they were contracted to appear overseas some entertainers could end up taking home less than they would have months ago. Entertainers can protect themselves by negotiating their contracts in dollars instead of the local currency. This is a situation where a forex converter would come in very handy. If a percentage of their tour profits is calculated in local currency artists without access to an accurate forex converter could easily lose money.
Currency Fluctuations and Risk
For tour promoters and artists currency fluctuations add additional uncertainty to an already risky business. The following currency quotes should give a general idea of just how much money is a stake. On June 1 100 euros was worth about $155. As of Friday (Nov. 14, 2008), it came to about $127. Similarly, 100 pounds was worth $198 on June 1 and $148 on Friday. Multiplied by tens or hundreds of thousands of dollars, the losses due to currency fluctuations can be astounding and artists and promoters who do not consult a forex currency converter are bound to suffer great financial losses.
Entertainers Lose 20% Due to Currency Fluctuations
Tour promoters can raise ticket prices to compensate for currency fluctuations but as one promoter said, "That's a very dangerous game to play. We're in an economic downturn and if we push ticket prices too far, we're going to find ourselves losing out." Entertainers Celine Dion and Tom Petty both experienced losses of up to 20% on recent Canadian tours because of unfavorable exchange rates. On June 1, the US dollar and the Canadian dollar were near parity; now, one U.S. dollar buys about $1.22 Canadian dollars.
The example of the entertainment industry illustrates the need for a reliable forex converter for anyone traveling, or doing business in, any foreign country. Exchange rates can change rapidly and those without a forex converter may be in for some very unpleasant surprises.