A few days ago, my friend discussed which currency gives a higher exchange rate for us seafarers.
Since we are paid in Dollars and our cash advances are always given in Euros, he became curious. He wants to share how much he’s getting if cashing out on dollar, euro, or the allotment.
This made him think after the USD-Php exchange rate reached the 51 mark.
We all know that our allotment rate is significantly lower than the market rate. This leaves us with only two options- Dollars versus euros.
Here is what we found out:
Now, let us try to give an example of how those figures work in our income.
For an easier conversion rate, we will assume a salary of USD 1,000.00 converted to the categories above.
The above table gives us a clear view of the exchange rates of the two currencies in Peso.
Our 1,000.00 Euros would be equivalent to USD 1,192.56. Meanwhile, USD 1,000.00 is equal to EUR 838.532.
Next, let’s convert our new rate- the EUR 838.532 against the original rate of USD 1,000.00 into PHP.
Let’s see which currency gives us a better rate.
Based on our table, our USD 1,000.00 when coverted to Peso would give us PHP 51,138.10.
On the second currency, our thousand dollars gave us EUR 838.532 which is equivalent to PHP 51,138.12558. This is only a few cent difference between the two which is too small to be felt.
But if we compare it against the allotment rate, we can have an extra PHP 1,638.10 every month! Huge difference.
What This Means for Us
At the end of the month, we always try to count how much money we received on our allotment. We specifically want to know the corresponding exchange rate for our cash advance. Since our cash advance is in Euro, we want to know the difference.
We try to argue within ourselves if the exchange rate the company used is justifiable. Is it within the amount reflected in our wage scale?
Some crew even think that taking cash advances in Euro gives us more peso than in dollars. Others on the other hand believe otherwise.
But the table says it all. It’s almost the same.
The Best Compromise
We can agree that whatever exchange rate they used for our cash advances, it’s still better than our allotment rate.
The difference might look small, say 1.5 Pesos for every dollar. But when large amounts of money are involved, it could reach thousands.
Those extra bucks will pay a great deal for our training certificates and COPs.
May the winds be on your favor.