One of the biggest factors to consider when sending money to a foreign country is the exchange rate. Knowing the exchange rate between two currencies will allow you to calculate the value of your local currency in the country you’re sending to. However, currencies are traded on global markets, which causes them to fluctuate almost constantly. Here’s what can you do to make sure you are always getting the best rate.
1. Know what you’re looking for
It would be great if there was only one exchange rate, but unfortunately if you look online you’ll probably be confronted with a number of different terms such as; mid-market rate, money rate, forex rate or buy/sell rate. All of these terms represent different types of exchanges, but the mid-market rate or “interbank rate” is the one that will impact your money transfer. This rate is easy to find online…
Check out WU.com to find out the current exchange rate* with Western Union.
2. Be aware of the market
Understanding how financial markets work is extremely complicated and there are a number of factors that cause exchange rates to move up and down. Luckily, you don’t need to be an expert to be an observer. Checking the exchange rate once a day and paying attention to the news in your country and the country you’re planning on sending money to will keep you informed and make sure that you find the best time to capitalize on favorable exchange rates.
Tip: Major political events or announcements generally cause the exchange rates to move more than they would on a normal day. These are the days where it is very important to pay attention to how the market reacts.
3. Send more to save
Exchange rates are not the only factor that can affect the cost of your money transfer as banks and transfer service companies will often charge you a fee. If you regularly send smaller money transfers, you could actually save money by making one larger transfer as opposed to two or three smaller ones.
Take the hassle out of transferring money. Western Union makes it easy to know the exchange rate* and any transfer fees before you send. With WU.com or the Western Union app you can send money to bank accounts or for cash pick up in over 200 countries and territories around the world 24/7.
*Western Union also makes money from currency exchange. When choosing a money transmitter, carefully compare both transfer fees and exchange rates. Fees, foreign exchange rates and taxes may vary by brand, channel, and location based on a number of factors. Fees and rates subject to change without notice.