Demystifying exchange rates: Your Guide to Money Transfers
Get one of the best exchange rates with Rebtel
Are you looking to send money back home and want to make sure you are getting the best value for your hard-earned money? One thing to keep in mind is the exchange rate that you'll be getting when you transfer your money.
At Rebtel, we firmly believe that every cent of your money should go where you want it to be when transferring money abroad. Our exchange rates are calculated in real-time, based on current market rates, and we work with reliable financial data providers to make sure we're giving you the right information.
So, whether you're sending money to your family or friends, or just need to send money to your own account in another country, we've got you covered!
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What are foreign exchange rates?
Foreign exchange rates tell you how much one currency is worth in comparison to another. They are constantly changing, so it's important to stay up-to-date on the latest rates. By keeping an eye on exchange rates, you can make sure you are getting the best offer for your money when sending money transfers back home.
Let's get a deeper understanding...
Before we get into the ins-and-out of how this affects your money transfers, there are a few important terms and definitions to understand.
Mid-market exchange rate
The mid-market rate is the midpoint between the buy and sell rates of two currencies in the foreign exchange market. This is often used as a reference point for businesses and people who want to know the "true" value of a currency before making a transaction. The mid-market rate is a great tool to use if you want to make sure you're getting a fair exchange rate when transferring money internationally.
Foreign currency
Foreign currency is basically money from a different country than the one you live in. For example, if you live in the United States and you need to send money to someone in Mexico, you'll need to use Mexican pesos instead of US dollars.
Currency exchange services
These are businesses that offer the exchange of one currency for another. These services are often used by people who are traveling to a foreign country and need to convert their home currency to the local currency, or by people who need to make international payments or transfers.
Luckily, with Rebtel, you have good visibility into the exchange rates on your transfer and you don't need to go through that whole process manually or enlist an exchange service.
Floating exchange rate
A floating exchange rate is a type of exchange rate that is determined by the supply and demand of the currencies in the global market, rather than being fixed to a specific value. This means that the exchange rate can go up and down frequently, and it can affect the amount of money you get when exchanging currencies or making international transactions.
Fixed exchange rates
A fixed exchange rate is a rate that is set and maintained by a government or central bank. It means that the value of a country's currency is fixed or pegged to the value of another currency or a basket of currencies.
Real exchange rate
The real exchange rate helps us discover how expensive or cheap things are in different countries when we take into account the value of their money. It's a way to understand which country's goods and services are more affordable compared to others.
This real exchange rate thing is important because it helps policymakers, businesses, and investors understand how different currencies affect trade, inflation, and investment.
Currency exchange rates affect your money transfers
Do you want to send money abroad? Currency conversion is important to understand so you know how much you are paying for foreign exchange rates. These rates determine the value of your money in the country where you are and where you are sending money to.
When you send money, your currency is converted into the recipient's currency, and the exchange rate affects the amount of money that they receive.
So, it's important to pay attention to exchange rates and choose a money transfer service that offers competitive rates, so that you can get the best value for your money.
At Rebtel, we offer the best exchange rates available out there
You don't have to become an expert on the exchange rate system to get the best deal. Foreign currencies can get complicated but with Rebtel, it's easy to transfer money to other currencies and to see how much you are sending home.
Between Rebtel and our partner Ria, we handle the complications of interest rates, and the interbank rate to find you the best exchange rate on every transfer! If you want to see how currency conversion rates differ, it is all available to you in the app.
See exactly how much money comes out of your bank account and into theirs (bank transfer)
Get the best rates on every transfer and avoid expensive traditional providers.
Use the app as a currency converter and view exact amounts.
At Rebtel, we’re committed to offering the lowest necessary fees, because we simply think you shouldn't pay extreme amount in fees!
How does Rebtel calculate exchange rates?
Rebtel calculates exchange rates for money transfers based on the current market rate for each currency pair. These rates are updated in real-time and sourced from a variety of reliable financial data providers.
By using these rates, Rebtel determines the amount of local currency required to send money to an international destination. The exchange rates are also used to show the current balance in your local currency and to provide estimates of the cost of future money transfers.
How can I find out the exchange rate for a specific country?
To find the exchange rate for a specific country using the Rebtel app, simply click on the "Money Transfer" button and it will take you to the calculator screen.
There, you can enter the amount you want to send and the app will automatically show you the value in the recipient's currency based on the current exchange rate. It's a quick and easy way to ensure you know exactly how much your money transfer will be worth.