The world we live in today enables us to exchange products
and services for money, where the value of currency differs depending on
various factors like money supply, interest rates, capital flow, and inflation.
This difference in the value of currencies resulted in the requirement for
foreign exchange.
Foreign currency facilitates global trade and international
investments. Without it, it would be practically not easy to determine the
value of products and services that a country trades with another country.
Furthermore, international tourists would have difficulty buying anything while
overseas, emphasising the need for foreign exchange.
You may need to move funds between your overseas bank
accounts or another person's foreign account. Wiring cash to family members
overseas or paying bills on foreign property are just a few of the reasons to
convert currencies.
Various currencies exist throughout the world. That is,
foreign currency exchange rates are required to ensure that the money transmitted in one
currency is the same in terms of the value received in another.
Know How Foreign Exchange Works
Foreign currency exchange is the conversion of a country's
currency into the one you prefer. Exchange rates fluctuate regularly in
response to the volatility of global trade markets.
When performing an international money transfer between
accounts, the rate determines the difference, depending on the current market
conditions. The money sent by someone is subsequently converted to the currency
you prefer using this rate.
Understanding Currency Exchange Rates
When it comes to determining the exchange rate of a currency
with another, the interest rates, unemployment rate, gross domestic product,
and economic activity of a country are considered. They are sometimes referred
to as market exchange rates and are determined in the international financial marketplace,
where various financial institutions, including banks trade currencies,
depending on these variables.
Major incremental swings and small changes lead to
fluctuations in exchange rates every day or every hour.
Exchanging a currency with another at a rate between
economic zones or countries is called an exchange rate. It is used to calculate
the value of different currencies with respect to one another and is critical
in calculating trade patterns and capital flows. An exchange rate is typically
given with an abbreviation for the currency of a country it represents. For
example, SGD symbolises the Singapore dollar, while USD represents the United
States dollar.
About International Money Transfers
Wire transfer is the most sought-after electronic transfer
method for swiftly moving large quantities of cash. Singapore offers
money-transfer services through banks and other financial institutions to help
you make domestic and international money transactions.
However, this ease comes with a cost. To send money online,
you must pay transfer fees. It makes it essential to know the importance and
cost connected with money transfers, either internationally or domestically.
Online Money Transfers through DBS Remit
DBS Remit helps you initiate quick and hassle-free
international fund transfers. You can send money to over 50 destinations from
Singapore at competitive rates. Some benefits of using DBS Remit include:
No Fee
DBS Bank does not charge any fee for its international money
transfer service. This helps you to have effective fund transfers at no cost.
Same-Day Delivery
DBS Bank clears money transfers to beneficiary accounts in
the quickest possible time. Your recipient will get fund credits in their
accounts on the same day if you commence the transfer procedure before the
deadline.
Competitive Forex Rates
You can have the most out of your foreign currency transfers
into international bank accounts. You can select your currency conversion rate
with the bank's competitive forex rates on remittance.
When it comes to time and cost, using a money transfer
service through a leading bank is the best option for international money
transfers. They help make foreign currency exchanges quicker and cheaper using
real-time currency exchange rates.
