Exchange rate: How it impacts what your family receives

When you send money abroad, the exchange rate decides how much your loved ones receive. This single number can mean the difference between covering essentials or falling short.

Knowing how exchange rates shape your transfers helps you send more support home. Here’s what to keep in mind for your next transfer.

What is a foreign exchange rate?

An FX rate is the value of one currency compared to another, determining how much foreign currency your family receives when you send money abroad. When you transfer money, the exchange rate determines how much your loved ones receive in their local currency. This rate changes constantly throughout each day, making it a key factor in how far your support stretches.

Why exchange rates matter

Even small exchange rate fluctuations can significantly change what your family receives. Even a small improvement in the exchange rate can mean more money  for essentials like groceries, medicine, or school supplies.

For regular senders supporting families with monthly remittances, these differences add up quickly. The money you work hard to send should provide maximum support for those counting on you.

Factors that drive rate fluctuations

Exchange rates shift based on several economic forces that affect international money transfers:

• Economic stability: Countries with strong economies typically have stronger currencies

• Interest rates: Higher rates often attract foreign investors, strengthening a currency

• Inflation: High inflation generally weakens a currency over time

• Political events: Elections, policy changes, or unrest can cause sudden shifts

These factors create daily exchange rate fluctuations that directly impact remittance costs for families worldwide.

Fees, margins, and the final amount

Money transfer services typically make money in two ways that affect what your family receives:

1. Transfer fees: Upfront charges deducted from your send amount

2. Exchange rate margins: The difference between the mid-market rate and the rate you're offered

These combined costs determine how much of your hard-earned money actually reaches your loved ones. When sending money abroad, understanding both components helps you make better choices.

Tips to get more value in your transfer

1. Compare providers wisely

Don’t just focus on the advertised transfer fee. Look closely at the real exchange rate you’re being offered. Calculate the total amount your recipient will receive after all costs. With Sendwave, you benefit from transparent exchange rates, low fees, and many times, no fees, so your support goes further. Unlike traditional providers with higher overhead, Sendwave is designed to deliver better value and more money home, every time you send.

2. Watch for timing opportunities

If your transfer isn't urgent, monitor exchange rate trends for a few days. Currency values fluctuate daily, and sending when rates are favorable maximizes what your family receives. Some providers, like Sendwave, offer rate alerts to notify you when conditions improve.

3. Consider low-fee options

Digital money transfer services typically offer lower fees than traditional providers. Services like Sendwave offer low or no transfer fees in select countries, though exchange rate margins may still apply. These savings make a meaningful difference for families depending on your support.

Staying aware of market changes

Set up currency alerts through financial news apps or your transfer provider to stay informed about significant rate movements. Being proactive about exchange rates helps you make timely decisions about when to send money.

If you notice your usual provider's rates becoming less competitive, don't hesitate to explore alternatives. Your family's financial wellbeing depends on getting the most value from each transfer.

Where affordability and reliability connect

When choosing a money transfer service, consider both exchange rates and reliability. Your family depends on transfers arriving quickly and securely, not just affordably.

Mobile-first services streamline the sending process while maintaining competitive rates. Sendwave's app allows you to send money in just a few taps, with transfers typically arriving within minutes in many corridors.

The best services combine:

• Competitive exchange rates

• Low or no transfer fees

• Fast delivery times

• Reliable service

• Easy-to-use platforms

Keeping distance small, even when miles apart

Understanding exchange rates empowers you to make smarter decisions about supporting your loved ones financially. By monitoring rates, comparing providers, and choosing services that prioritize value, you ensure more of your hard-earned money reaches the people who matter most.

The right approach to international transfers helps maintain your financial connection to home, regardless of physical distance. Every dollar, pound, real, peso, franc, shilling, dong, taka, cedi or euro (...the list goes on) that you send, carries your care across borders.

Download the Sendwave app to start sending money to your loved ones. It’s safe, secure, and fast!