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Help! Cashing a Singapore dollar cheque

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Wazandy

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My wife recently sold a property in Singapore and was given a cheque for around 215,000 Singapore dollars.

I had no idea that cheques of this size take 4-6 weeks to cash - therefore removing any power we had of the exact time the currency transaction takes place to take advantage of highs and lows..

Seeing as we've already lost over 50,0000 dollars since the high recently, (and that looks like increasing soon) what the hell can I do with the cheque now on that 4-6 week journey.

UBS bank submitted the cheque on the 28th of May, so they're trying to retrieve it before it's converted.

If they can't get to it, is there ANYTHING I can do?

Unfortunately the cheque is from the Singapore Government - because I did think about cancelling it from that end and just sitting on it for a few months.

Any advice would be very helpful, this was our house deposit, and it's shrinking by the day!

Thanks all.
 
Re: Help ! Cashing a Singapore dollar cheque.

I am just thinking aloud here - and this is not advice on the Ausse Sing exchange rate in any way - but maybe if you talk to UBS or whoever has the cheque about hedging your exposure ASAP (if that is your view). Either that or talk to a broker who does DELIVERABLE (this is important) FX, like OzForex. Just watch the expenses of setting up a hedge.
 
Thanks for the speedy reply. Appreciate it.

As I said, we opened a bank account with UBS recently, and they put the cheque into the system (presumably to find its way to Singapore, get fund-checked and then slowly return in a few weeks to be converted into Aussie..)

I did get this from UBS though...

"UBS is not a deposit taking bank in Australia (our banking transactions are done through Westpac) and I cannot speak for the local banks but it seems they are not prepared to lock in a rate until the cheque has been verified.

We have hedging facilities for clients but funds need to be received to fund the hedge. The problem I appreciate is receiving the funds.."
 
An idiot question from me, but what can they do if the cheque is now in the system and doesn't look as if it'll re-surface until it's back here and converted?

(thanks mate...)
 
Couldn't you just short with any FX Broker the AUD/Singapore Dollar pair?
Doesn't need to be delivered?
 
To be honest - I don't know ... and maybe nothing. But they may be able to hedge it for you (lock in a rate), if that's what you want.
 
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