A nation’s economic strength can be determined by the exchange rate of its currency. Exchange rates, combined with interest rates and rates of inflation, directly affect the trade level of a country. Exchange rate is basically how much one currency converts into another, and there are many factors that add to the ups and downs of any country’s exchange rate.
Technology Advancements in Money Transfer
In today’s world, technology has advanced enough to make seamless transition of money from one country to another with everyday devices. The process have been simplified and made easy that anyone around the world can transfer funds to their loved ones almost instantly through Money Transfer Service providers like Jula Finance.
Factors That Affect Exchange Rates
Before getting into how to get the best deal when it comes to exchange rates, here are some factors mentioned here in no particular order that directly affect a countries exchange rate.
1. Inflation Differentials
Countries that have lower inflation rates have a higher valued currency which strengthens its purchasing power as compared to other currencies. Countries with higher inflation see a reduction in the value of their own currency along with higher interest rates. Yes, it is that simple.
2. Interest Rates Differentials
Interests rates are one of the most important aspects that directly have an effect on exchange rates. Higher interest rates allow lenders and banks to have better returns on investment.
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Impact of Currency Exchange on Everyday People
For people, lower valued currency means the price of imported goods increases. This obviously affects the buying power of people and impact their everyday lives. Those people who live in countries with higher valued currencies are a lifeline to their loved ones in lower economies of the world.
How to Find the Best Exchange Rates?
Research is the most important part when looking to find the best exchange rates. When sending money from the UK to the Africa region it is best to get in touch with a reliable MTS provider like Jula Finance which provides easy ways to send and receive money across countries.
With a dedicated mobile app that provides not only secure and safe money transfers, but also real time updated, competitive exchange rates for various currencies around the world. With just a few taps on your phone you can send money to your loved ones in Africa and make sure you get the best exchange rates so that your friends and family receive more.
