Did you know that the day of the week can affect your currency exchange rate? The way currencies fluctuate can be confusing. However, if you need to regularly send money abroad to family members or to pay bills in another country, it’s helpful to keep on top of the exchange rates. After all, they affect the value of whatever money you send or receive. Let’s break down how to decide the best day for a currency transfer.
What is a “good” exchange rate, and why does it matter?
Exchange rates affect the price of goods imported and exported — but they also influence international money transfers. Regular fluctuations in exchange rates mean that sending a specific amount may cost you more if the exchange rate is low.
That’s why tracking current market conditions could help you get the best exchange rates for both the sender and receiver. A good exchange rate means you get the most value for your money during a currency transfer. To determine what’s “good,” you must understand what’s normal by checking the mid-market rate. This term refers to the midpoint between the buy and sell prices of any two currencies across different vendors and banks. Anything that hits that range or above is considered a good rate.
Tips for getting the best exchange rate
If you regularly need to transfer money between currencies, these tips can help you get the best rate:
Stay up-to-date on geopolitical events.
Political events can directly affect exchange rates, the price of exports, and overall inflation, which then affect each other. For example, inflation tends to devalue a currency because it reflects a currency’s buying power, directly affecting its currency transfer value. Learn more about inflation’s impact on remittances.
If you regularly transfer money abroad, it’s wise to keep an eye on anything that could affect exchange rates. Check the mid-market rate when related pieces of legislation are passed or when there are big changes in the economy.
Check the mid-market rate.
The mid-market rate can give you an idea of whether an exchange rate might be considered good or bad. To find it, you can look at sites like Bloomberg. You can also do a quick Google search to get an idea of the mid-market rate, but it might not reflect the final rate you get when sending a remittance. For our latest rates and fees, check out the Ria currency calculator.
Avoid peak currency transfer times.
Certain times of the day or week are busier than others for currency transfers, which can also cause rates to soar. People are more likely to transfer currency during the working week, with Fridays being one of the busiest days. This can affect currency exchange rates.
Many international money transfers also occur during the first ten days and the last five days of the month. Consider comparing rates during these peak times to other parts of the month to see how they could be affected by market behavior.
Typically, the least busy times of the week are Mondays, mid-week and the weekend (excluding Friday). These days have the lowest number of transfers in the week, so you might expect to see less fluctuation in the mid-market rate.
Send money with Ria Money Transfer
Checking things like economic health, mid-market rates, and geopolitical events can help you get the most out of your currency transfer. If you regularly send money abroad, it’s worth keeping a close eye on the above to ensure you and your loved ones don’t lose out.
At Ria Money Transfer, we offer a simple and hassle-free way to manage currency transfers. You can find your nearest location to send money on ourlocations page or download the Ria appto set up a money transfer within minutes. Visit our website to check our latest exchange rates and send money with Ria!
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