Exchange price and exchange rates are those terms that are used commonly in our daily lives. While sending money to Ghana, it is important to understand factors that cause changes in exchange rates. Exchange rates are always being changed because of multiple factors. Here we will analyze these factors and also the best time to make international transactions while saving money.
Understanding Exchange Rates
Exchange Rate means:
“Value of one currency for the purpose of conversion to another currency”
For example, when you send money online to another country or exchange currency you will get a fixed amount in the replacement of your currency. If 1 US dollar (USD) is worth 16.22 GHS, then the exchange rate between USD and GHS is 1 USD = 16.22 GHS.
Factors affecting exchange rates
A variety of factors affect the value of a currency when compared to others. Here are some of the most common reasons for the fluctuation of exchange rates.
1.The political condition of a country
This factor must be addressed before investing. Any country that has a stable political and strong economic condition leaves no room for any uncertainty regarding the value of its currency. A country prone to unstable political conditions might face depreciation in the exchange rate of its currency.
2.Inflation Rate
Any change in the inflation rate directly affects the currency exchange rate. Inflation can be rated as the value of a currency in the market. The higher the inflation the lower the value of a currency in the country and the higher the exchange rate. And if a country’s value is good in the international market then it means no inflation and lower exchange rates.
3.Interest Rates
The change in the Interest Rate directly affects currency value and exchange rate. An increase in interest rates attracts a larger number of investors and foreign capital, which causes the exchange rate to fluctuate higher and vice versa.
4. A Country’s Current Account
The country’s current account consists of several transactions related to imports, exports, and debt. A deficit in the balance of payment has a negative rating on the value of a currency and eventually on the exchange rate. While a surplus boosts the economy and exchange rates.
Speculations
Investors in the international market always monitor the situation of different countries and currencies. If there is any speculations circle in the market about the increase in the value of a country. The business giants want to buy the currency of a specific country and eventually, demand will increase. And with this increase in the demand for a currency, its value gets stronger, and then the exchange rate too.
How to secure the best rates when sending money to Ghana?
For better exchange rates you can check the real currency value on our website’s or app’s calculator. Remit Choice always offers high rates to give you good value for your hard-earned money. You can also compare the exchange rates from other platforms before sending money to Ghana. On comparing you will get a clear idea that some companies have lower rates and some high. You should choose the one that offers high rates.
For exchange rate comparison, you need to follow this guide.
- You need to compare rates from different platforms before sending money to Ghana like banks, online money transfer companies, or currency exchange websites. These rates can vary between service providers.
- You can also compare the rates with mid-market rates. This is the same as you see in the news and also offered by Interbank. Using this approach for comparison is really a good idea.
- Some providers will charge you some fees or hidden charges for offering the best exchange rates while sending money to Ghana. Here you have to be clever and understand the real value of the currency exchange.
- As you know exchange rates fluctuate all the time so when you get a good rate transfer money to Ghana instantly. Maybe you act later the rates go down and you lose some amount of your money.
- Last but not least point is that if some providers like Remit Choice are offering special rates due to any offer, avail it before it expires. These offers are not regular so save your extra money while sending money to Ghana. Save more and send more with these special offers by some service providers. During these offers, you will also get a relaxation of the transfer fee. We charge a minimum fee to transfer any amount.
Conclusion
Now you have a better idea of how you get the best exchange rates while sending money to Ghana. You also know which time is best to make international transactions. You know how exchange rates work and why it changes continually after reading this blog. If you have further queries related to your transaction or exchange rates you can contact us through our support email.
We are always ready to provide you with assistance because we know your and your family’s needs are important. We transfer your money instantly without any hassle or extra charges. So what are you waiting for? Send Money Now.
