Unless you are one of the many people who work outside of their birth countries and regularly send money home, then you probably don’t have much of a reason to think about the ins and outs foreign exchange transfers of currency. However, for a good number of people, this is an issue that comes up at least once or twice in their lives. Billions of US dollars are changed into foreign currency every year, in every country in the world and in every imaginable amount. Here are three types of people who are likely to need to make use of foreign exchange transfers. Travelers Once a traveler crosses a country’s borders, they will most likely have to exchange some of the money they have on hand into the local currency if they want to make any purchases. The one exception to this rule is travelers within the European Union who are carrying Euros. However, if the Euro has a high exchange rate against the local currency, they might still want to trade it in and try to come out ahead in the bargain. Outside of airports and other transportation hubs, very few places in any country will accept outside currency, so if you are traveling be sure to conduct all necessary foreign exchange transfers early and exchange enough money to last the trip. Foreign workers According to the World Bank, nearly three percent of the world’s population in employed outside their countries of birth. Many of these workers have family members and dependants back home to whom they regularly send money. All of this cash has to undergo foreign exchange transfers before it can be used in the home country. In these cases, exchanges generally take place when the money is transferred via wire service. For a small fee, wire services will deposit money directly into a foreign account, making all the necessary exchanges at the same time. Students and temporary residents Students studying abroad and other people who live abroad temporarily but without the intention of making their stay permanent also frequently make use of money conversion services. A student may calculate his or her semester budget wrong, or a temporary resident may run into an unexpected emergency that requires money from home. In these cases, they have the option of making use of wire transfer services. Alternately, a party back home can put money into a bank account and that money can then be withdrawn via an ATM using a debit card. This is often one of the best ways to get a good exchange rate on funds.
