International money transfers aren’t always as simple as they should be, with so many rules, regulations and rates; it can all be a bit confusing. That’s why we aim to make currency transfers simple, with better rates than the big 4 banks and accompanied with friendly service.
Here we’ve answered some of our most frequently asked questions on how currency transfers works. If you have any further questions that aren’t answered here, then please feel free to contact us and we’ll be happy to help.
Does an international money transfer work on public holidays?
Although we offer an alternative to using a bank’s rates for currency transfers, we do still have to rely on banks to complete payments. Because of this, we can only offer transfers on public holidays if both your bank, and the recipient’s bank, do too. The likelihood of this being the case is very low, so public holidays do generally tend to delay transfers until the next working day.
Do money transfers work over a weekend?
As we have to rely on banks to complete payments, we can’t guarantee that money transfers will be as quick over the weekend as they will be on a weekday. For a transfer to go through on a Saturday or Sunday, both your bank and the recipient’s bank will offer this service, so you will have to check their terms and conditions. You can make a payment over the weekend, but you will unfortunately often have to wait until the next working day for the money to be received.
In many circumstances we do achieve same-day transfers for our customers. For example, a weekday AUD to USD transfer for an existing client who has traded before often is completed in one day.
That said, our best tip here is, when possible, make your transfers during the week.
Why are currency rates different?
Currency exchange rates fluctuate from day to day, but also differ from bank to bank to exchange service. There is a base rate, called the interbank rate, which guides currency exchange rates, but different organisations are free to set their own rates below this mark.
This is generally how banks and exchange services make money from a currency exchange – they keep the difference between what they charge and the interbank rate, and often add on fees as well. We offer better exchanges than the big 4 banks, often 4-5% superior, and lower fees*. This is how we differentiate ourselves and give our customers a better deal.
As an example, say the interbank rate for exchanging Australian and US dollars was 76 cents to one Australian dollar. A bank may set its rate at 72 cents, while we set ours at 75 cents. Exchanging $20,000 AUD will see you receive USD $14,400 from the banks, while exchanging with us will give you a return of USD$15,000. So you are better off by $600 in this example if you choose World First over your bank, even without taking into account fees.
How are exchange rates determined, and what makes them fluctuate?
The exchange rate is essentially the value of one currency in terms of another – so how many Australian dollars equate to how many euros, or sterling, and so on. They’re determined by the strength of one currency in relation to another.
Rates fluctuate daily through a large range of factors, including inflation, interest rates and public debt in each country, as well as trade prices, investment, and political stability. Just to name a few.
Some examples of the key drivers of fluctuation on the Australian dollar includes:
• Interest rate decisions by the Reserve Bank of Australia. These take place on the first Tuesday of every month.
• Demand for our commodities from other countries, in particular from China.
• Economic data – For example employment figures, CPI figures or industry data.
• The performance of other major currencies such as the USD, GBP and EUR.
The best sources of information
We always advise to speak with a currency specialist for any query, not matter how big or small. That’s why you can speak with a World First currency specialist 24 hours a day through our global network! Our website is also a rich source of information, there you can even sign up to rate alerts and our daily currency update, find FAQs or chat with us.
1800 744 777 | worldfirst.com.au
THESE COMMENTS ARE THE VIEWS AND OPINIONS OF THE AUTHOR AND SHOULD NOT BE CONSTRUED AS ADVICE. YOU SHOULD ACT USING YOUR OWN INFORMATION AND JUDGMENT.
WHILST INFORMATION HAS BEEN OBTAINED FROM AND IS BASED UPON MULTIPLE SOURCES THE AUTHOR BELIEVES TO BE RELIABLE, WE DO NOT GUARANTEE ITS ACCURACY AND IT MAY BE INCOMPLETE OR CONDENSED.
ALL OPINIONS AND ESTIMATES CONSTITUTE THE AUTHOR’S OWN JUDGMENT AS OF THE DATE OF THE BRIEFING AND ARE SUBJECT TO CHANGE WITHOUT NOTICE.
PLEASE CONSIDER FX DERIVATIVES ARE HIGH RISK, PROVIDE VOLATILE RETURNS AND DO NOT GUARANTEE PROFITS.
* Based on a comparison of World First currency rates & fees versus the rates & fees published online by the Commonwealth Bank, ANZ, Westpac and NAB in the period 20/08/15 – 08/07/16 for transfers of amounts of AU$3,000, $10,000, $100,000 and $200,000 to EUR, GBD, USD, NZD and CAD. World First Pty Ltd is regulated in Australia by ASIC (AFS Licence number 331945). ACN 132 368 971. Member of Financial Ombudsman Service (membership number 13405)