Your Guide to Getting the Best Rates
Whether you are sending remittances to your family in Africa, or working as a freelancer receiving payments in foreign currency, or traveling for business or leisure, it is essential to understand currency conversion and secure the best exchange rates. In this article, we’ll provide you with clear insights and practical tips to navigate the world of currency conversion.
The Basics of Currency Conversion
Currency conversion is the process of exchanging one currency for another. It’s driven by the foreign exchange market (FOREX) where currencies are bought and sold. By monitoring the fluctuations in exchange rates, you can strategically plan your currency conversions to take advantage of the most favorable rates. This allows you to secure the best possible conversion rate while also gaining a clear understanding of the costs involved and enabling you to budget more effectively for your transfers.
The exchange rate represents the value of one currency in terms of another, and it fluctuates constantly due to various factors such as economic data, geopolitical events, and market sentiment. For instance, an election or a change of government can have an impact on a country’s currency. According to Investopedia, a change in government can mean a change in ideology for the country’s citizens, which usually equates to a different approach to monetary or fiscal policy. This means that a new government in power can affect the citizens of the country and how they use their currency.
As a remittance company, we know that sending money to your loved ones in Africa is another way to support them and contribute to the growth of the economy. But with so many factors affecting currency conversion rates, it can be stressful to know if you’re getting the best deal.
Guidelines to Getting the Best Rates
Imagine you’re a traveler exploring a new country or an immigrant settling in a foreign land. Once you are there, you cannot spend your old currency. In your new environment, your old currency becomes obsolete; you must exchange it for the local currency to make transactions. Sometimes, the exchange process may not always offer the best rates. Thankfully, there are guidelines you can use to ensure you’re getting the most favorable exchange rate possible.
Compare Rates
Don’t settle for the first rate you find. Compare rates from multiple sources, including banks, currency exchange offices, and online platforms. This can help you map out a clear understanding of when it is best to make your transfer. At Sendsprint, we offer competitive rates and transparency for remittances
Plan Ahead
If you know you’ll need to exchange currency for an upcoming trip or remittance, monitor rates and plan your exchange when the rate is favorable. Keep an eye on global economic news and events that could impact exchange rates. This knowledge can help you make informed decisions
Avoid Airport Kiosks
Currency exchange kiosks at airports typically offer less favorable rates due to high overhead costs. It is claimed that they often charge higher fees for currency exchange at the airport. For instance,if you just got off a plane after a long flight, you’ll be very tired and you probably need money right away. Some businesses take advantage of this in areas with tourists and charge higher fees to exchange currency. To avoid this, you can go to a local bank to change your currency
Use your card, but be cautious of foreign transaction charges.
When you travel abroad and you get to your destination, you can keep using your credit or debit card for most of your expenses. However, this can lead to foreign transaction charges and it depends on your bank and your card. For instance, if you spend a total of $5,000 on a trip using your credit or debit card and get charged a foreign transaction fee of 3% on every purchase, you would have incurred about $150 in extra charges.
To avoid situations like this, ensure that you call your bank before you travel and ask about their foreign transaction fees with the type of card or account you have so you are not caught unawares. You can also apply for a credit card that doesn’t charge foreign transaction fees. See more details here
Use a currency calculator
A currency calculator can help you determine the current exchange rate and how much your transfer is worth in the recipient country. Sendsprint’s inbuilt conversion calculator makes remittance easy. You can check the current exchange rate and estimate how much your recipients will receive after the conversion. All you just need to do is to enter the amount you want to send and it is converted for you in the recipient’s currency. Our rates are fair and with no unbearable charges.
Look for services with a low fee Conversion fees can significantly impact the amount your recipient receives. That is why it’s important to use a platform like Sendsprint with no hidden charges.
Use a specialist service
Instead of using Wise or Worldremit, consider using Sendsprint. We offer competitive rates, low fees, and quick transfer times. Infact, apart from sending money, you can also send gift card vouchers to your loved ones in Africa.
Why Exchange Rates Matter
Exchange rates impact various aspects of our financial lives:
Remittances: If you’re sending money to Africa from another country, the exchange rate determines how much the recipient will receive in their local currency.
Travel: When you travel abroad, you’ll need to exchange your home currency for the local currency of the destination country. A favorable exchange rate means you get more value for your money.
International Transactions: If you’re engaged in international business or online shopping, exchange rates affect the cost of goods and services.
In conclusion, currency conversion is an essential aspect of our globalized world. By staying informed and making the right decisions, you can ensure that you get the best rates and value for your money.