Money transactions are going on between countries all the time. Millions of people are looking for the best, cheapest, and safest ways to send money to people or a business in another country. The remittances are any of the following types.
People making money transfers from one country to another look out for the following four important factors
Conventional ways of sending money Money transfer has come a long way since the age-old practice of being sent from the bank to the other country, provided the beneficiary or recipient had an account in the bank. The other way was and still is to transfer money through an agency with branches in the country where the money is to be remitted. The sender pays the equivalent amount to the office of the agency in the currency of the country he or she is located in after the total amount is calculated. This amount includes the exchange rate and transaction charges. The details of the beneficiary or recipient are given. The beneficiary will need to visit the agency's nearest office or service center in person and prove identification and mention the amount he or she is to receive. The agency then proceeds to pay the amount in cash in the local currency of the country. There are a few important points currency investors need to be aware of
Making the comparison The important question is whether it is cheaper to send money to another country from India or from any other country. The way to do it is to compare exchange rates to India. This can be done by computing the different exchange rates in tabular form. Currency calculators would be required for this purpose. The table should show the exchange rates of currencies of various countries with that of India. The table will reveal that it works out cheaper in terms of exchange rates to send money to a country from India than from any other country. The table will also reveal that the exchange rates will be better with the currencies of countries that India has good trade relations and diplomatic relations with. The table, if elaborated further, will reveal which countries have the best currency exchange rates with each other. Tricks of the trade This means that currency can be converted from the currency of a country with whom the country has good economic relations via a third or fourth country and finally end up getting the best exchange rate. Such interrelations between currency exchange rates are revealed during the exercise to compare exchange rates in India. This essentially means that if someone in India wishes to send money to someone in a country A where the exchange rate with the Indian Rupee is not competitive, the sender needs to find a country B where the exchange rate is good with both India as well as that of the country A. Hence, the sender can find a way to remit money to Country B and from there to country A and get an overall good exchange rate. These are some of the benefits people get from comparing exchange rates to India. These are some of the ways currency investors operate as they use the currency of different countries as stock and trade them regularly. Other advantages The making of the suggested table to compare exchange rates to India will reveal there are more than 10 countries whose currency rate is lower than the Indian rupee. It would make great sense to invest in ventures in these countries, go on a holiday, and buy merchandise from these countries at cheaper rates. Investing in foreign currency at cheaper exchange rates opens a world of opportunities.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
September 2021
Categories |