Exchange Rates 101: How to Get the Best Exchange Rates When Sending Money to Africa
Looking for the best exchange rates to Africa? You’re not alone. Exchange rates are constantly changing, and the recent swings in global currency have only heightened this volatility.
Moreover, with the workforce worldwide becoming increasingly mobile, international remittances have grown in prominence, and immigrants are keeping a close watch over remittance exchange rates.
Sending money back home is an essential practice for many African diaspora families. From meeting urgent needs like medical care to covering essentials such as groceries, the money sent home is a crucial source of household income. According to a report by the United Nations, one in nine people worldwide are recipients of remittances sent by their loved ones who have migrated.
If you’re looking to save money on international transfers, we’ve got you covered. In this article, we give you a detailed breakdown of exchange rates: what they are, how they work, and why they matter. We also tell you how you can get the maximum value of your hard-earned money with OAPay’s unbeatable exchange rates.
Sending money to Africa? What you should know about exchange rates
When you send money overseas, every cent counts. Even a small shift in the exchange rate can mean that your loved ones back home have to stretch every dollar further. Knowing how exchange rates affect remittances to Africa is critical for you and your loved ones to get the most out of every transfer made.
What are exchange rates, and why do they fluctuate?
Exchange rates tell you how much one currency is worth when compared to another. It is usually determined by supply and demand in the foreign exchange (forex) market.
These rates can go up or down daily owing to multiple factors like:
- Global trade
- Inflation
- Central bank policies
- Political shifts
- Market demand
For instance, when the market demand for one currency rises, so does its value. On the other hand, political developments or economic uncertainties can cause it to decline.
How exchange rates affect remittances to Africa
Exchange rates determine the real-world value of the money you send and spend across borders. Your transfers depend on the day's rate. Let's say you want to send money from the US to your loved ones in Ghana. If 1 USD = 10.55 GHS, it means one dollar can fetch you 10.55 Ghanaian cedis.
A stronger USD rate means more local currency in GHS and more bills paid in full.
For individuals sending money home regularly, the same $100 can get you 1,055 GHS one week and only 1,035 GHS the next, significantly impacting how your recipients manage cash. Similarly, businesses that pay remote workers or import from Africa might end up taking a hit to their profit margins due to exchange rate volatility.
Lock in the best exchange rates with OAPay
Sending money overseas has been an arduous task, ridden with never-ending chains of middlemen and long processing times. Not to mention hidden charges. International funds transfer continues to be costly, with currency conversions and fees amounting to about 7% of the total money transferred.
OAPay is an Africa-first app for transferring money internationally. With OAPay, you can be assured of unmatched exchange rates. We want to ensure that more of what you send reaches your loved ones miles away.
In addition to guaranteeing you the best exchange rates to Africa, OAPay takes zero cuts on the amounts transferred, which means your money reaches your recipients 100% in full.
Your money deserves more
The money you send home is a lifeline. Don’t let hidden fees and unfair markups rob your loved ones.
With the best exchange rates and zero commissions, OAPay ensures more of it arrives home to your loved ones. Whether you're an individual supporting family or a business managing global payments, OAPay delivers fast, affordable, and secure transfers, spreading love and opportunity across borders.
Never lose out on a good exchange rate with OAPay. Sign up now and send more to your family and friends in Africa.
FAQs:
1. Why do exchange rates change when sending money to Africa?
Exchange rates frequently fluctuate due to changes in trade agreements or economic events like inflation. These factors impact the supply and demand for currencies in the global markets.
2. Tips to get the best currency exchange rate for Africa
To get the best exchange rates to Africa, you must:
- Keep an eye out for hidden charges
- Avoid last-minute transfers
- Compare remittance services to Africa
- Use trusted remittance platforms like OAPay
3. How hidden exchange rate fees impact your money transfer
Watch out for any hidden markups, as they can chip away at your transfer. Compare the charges to the interbank (mid-market) rate to know if you are getting a fair deal.
