How to save money when you send money to Bangladesh? In order for us to understand why is it important to analyze exchange rates before sending money online to any country of the world, whether through a bank or a company dealing in online money sending services. We will also have to understand what the exchange rate is.
Exchange rate or more appropriately Foreign Exchange rate is the value of one country’s currency in comparison with that of another country’s currency. These are called the domestic currency and foreign currency or the base currency and counter currency.
An example will suffice to understand it completely. If the USD/BDT exchange rate is 100, it would mean that you will have to spend 100 Bangladeshi Taka to purchase one dollar. The first currency in these equations will always depict one single unit of that currency and what a number of the other currency’s units is required to buy that one unit is the foreign exchange rate.
There are two types of exchange rates.
Flexible:- The currency exchange rates which are determined by the foreign exchange market are flexible which is why exchange rates fluctuate quickly.
Fixed:- The exchange rates which are pegged against the USD by some of the countries such as Saudi Arabia etc., are fixed and hardly fluctuate or do only when the government or the central financial regulatory authority of the concerned country decides to that effect.
A real-time Foreign Exchange Rate (Forex rate) is determined by the rate provider and is free of any kind of profit margin and the benefit of sending your money transfer to Bangladesh with a real-time Forex rate is that your principal amount remains unchanged and also there are no additional charges applied.
Forex rate is primarily determined by the demand and supply of a currency. The simple and basic principle of demand and supply drives a Forex rate.
Forex rates are used for the purpose of trade in the foreign exchange market.
Normally, the banks or the online currency exchange service companies offer different rates than the traders because through this they make a profit and survive as a business for your online money transfer to Bangladesh or other countries.
It is not illegal to add a markup or profit in the Forex rate by a company or a bank so long as it remains within the bounds of normal and prevalent markup and profit margin in the market. And also, companies and banks cannot be sued for adding such markups or profit margins.
In order for you to verify whether the Forex rates, markups and profit margins are aligned with the real-time rates you must conduct thorough research on Google, Reuters and Bloomberg.com etc., lest you fall prey to some unscrupulous companies and end up paying more than you should and repenting.
Conclusion:- Suffice it to say at the end of this entire discussion that imagine yourself not knowing about any of this and engaging with an institution to send or transfer your hard-earned money or remittance to another country. There are high chances that you get trapped by some evil elements in the market and have to pay a hefty amount as Forex rate because the difference of a few pennies makes up for a huge amount at the end of the day. But, your engagement with ACE online money transfer services company will rid you of all of these concerns because our ever-increasing customer base and our customers’ unwavering loyalty to our company is a glaring proof and testimony to the fact that we hold our customers’ welfare, comfort and convenience at the top our priorities without having to budge the fine quality services we provide to send money to Bangladesh online – a quality which ACE has now become synonymous with!