Foreign exchange service

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Foreign Exchange Services

Not all currency services are equal. Let us help you save money on your foreign exchange transactions.

Most expatriates have their finances arranged in two, three or even more currencies. Bank accounts, assets, liabilities and responsibilities in different countries mean that most of us soon become very proficient at switching and knowing the exchange rates between the various currencies we use.

For small purchases and transactions, we don’t really notice a difference in rates or charges, but for large transfers, these can have a significant impact on overall costs. Typically banks will charge a 2% to 4% foreign exchange charge on currency transfers. With more ‘exotic’ currencies, this can be significantly higher.

We review the available companies offering FX services and select what we believe to be the most suitable and well-regulated offerings in the market and ensure they align with your needs and requirements.

What is Foreign Exchange?

Foreign Exchange, also referred to as forex or FX, is a term used to describe the act of trading a foreign currency for foreign money. For example, a person can swap out U.S. dollar (USD) for Hong Kong dollar (HKD). This also applies to other foreign currencies.

The foreign exchange market (forex market) is the largest financial market worldwide. It’s even bigger than the stock market. The foreign exchange market has a trading volume of approximately $6.6 trillion daily, according to a 2019 survey.

While Forex markets are the global platform for exchanging national currencies with another, it has no centralized location. Having said that, a country’s central bank is responsible for fixing the price of the currency in its home country.

How Do Foreign Exchange Markets Work?

The foreign exchange market is where people can do currency conversion based on the current exchange rate, a process also known as foreign exchange services.

Foreign currency is incredibly important to a country’s economy because it allows people to purchase goods and services locally and internationally. However, buyers need to do currency exchange to conduct foreign trade and business.

For example, a person living in Curacao wanted to buy a shirt from Malaysia. This means either the buyer or the seller would have to buy the product from Malaysia in Malaysian Ringgit (MYR) before importing the order.

The same rule applies to travelling. A tourist in Curacao can’t use credit cards that are not Visa or Mastercard in other countries. Foreign currency payments are likely not acceptable. This means the traveller would have to get a Curacao currency exchange through foreign exchange services to be able to purchase items in the foreign country they are travelling in.

How Do National Interest Rates Affect Currency Value and Exchange Rate?

A country with higher interest rates likely has a higher currency value than a nation with lower interest rates.

While interest rate can be a major factor in influencing the exchange rates, the final determination of a currency exchange rate with a foreign currency is the result of a number of elements reflecting the country’s current financial situation, such as political and economical stability.

How To Save Money In Foreign Currency?

There are four ways you can save money when using foreign currency or when you are in different time zones.

Use a credit card

The easiest way to spend money in other countries if you don’t want to go through currency exchange services is by using a credit card. Be sure to get one that doesn’t charge you an extra fee for foreign transactions.

Order cash in advance

Before landing in the country of your destination, be sure to order cash ahead of time. That’s because foreign currency services at airports tend to have lower rates than a foreign exchange service found in other establishments.

Visit the ATM upon arrival

Before beginning your vacation or road trip in a foreign country, be sure to visit an ATM at the airport terminal. This is a favourable option as ATMs provide you with the same real-time currency exchange rates that credit cards do.

Hold foreign currencies in your bank account

Having foreign currencies in your bank account would be the easiest option. You may be able to convert your local currency to foreign currency digitally and then hold those funds in your account. This way, you can use a debit card for your spending without needed to avail of money exchange services.

Contact us today at vietnam@infinitysolutions.com and make sure your family are protected, no matter what life throws your way.

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