As we know, every country has its own standard currency. When we send money internationally, from one state to another, the banks or money transfer companies automatically transfer that, according to the currency of the recipient’s state. But, every state currency doesn’t have the same value. The exchange rates depend on currency devaluation of different states. The advanced states such as the UK and the USA have highly valued currencies. Whereas, underdeveloped countries such as Pakistan, Nepal, and Bangladesh have relatively devalued currencies. We can define the exchange rate as;
“Exchange Rates are the standard currency conversion rates, provided by Reuters in the open stock market”
Hence, whenever you change the currency of your cash, some exchange rates are applied. People may need to exchange currencies for two prominent reasons.
Traveling or Migration to any other Country: Before traveling or migrating to any other country, it is necessary for people to keep some cash in their pockets according to the standard currency of another state. For this purpose, they may have to get their payments transferred into other currencies. For Instance, if you are thinking to go on a vacation to Europe, then you must have some dollars with you for spending there.
How can we change currencies? Many banks such as Central Bank, ICICI and money transfer companies such as Western Union and Ace money transfers are providing currency exchange services, around the globe.
Sending Money to other states: A lot of people send money online to their families or loved ones, living in different states. For the customer’s ease, every bank and IMT provider transfers the money after changing it into the currency of the recipient’s state. For Instance, if you want to send money to Pakistan then your payments will be transferred in PKR. If you want to send money to Nepal online, your payments will be transferred to NBP.
But, the thing that requires most of our attention is the independent exchange rate. Many people may charge marked-up exchange rates from their customers, which compels the customers to pay unnecessary bucks to transfer money online.
What is the Solution? The solution to this problem is very simple. You just need to act smart and use your intellect carefully before selecting any International Money transfer portal. Every person has access to the internet. Search for “Open Market Forex Rates” and look at the independent rates provided by Reuters. When a specific IMT provider gives you their exchange rates, compare them with the Forex Market and if they are the same or if the margins seem appropriate to you then go for it. But if some company or bank is charging a very extra rate, then avoid using that.