How remittance affects a country’s economy

For anyone who follows global business, it should come as no surprise that the volume and frequency of international remittance in the past few years has grown tremendously. This is, of course, due in large part to the ever-increasing population of foreign born workers in countries around the world who are sending portions of their wages back to friends and family in their location of origin. The act of remittance, when analysed from a variety of perspectives, has proven itself to be immensely beneficial in a variety of ways.

For developing nations, remittance has proven itself to be a crucial lifeline through which foreign currency is routinely injected into their domestic economy. This, of course, often leads to substantive gains in overall economic health and an increased in speed of modernisation and other development projects occurring within the economic sphere. To put this in perspective, studies undertaken in 2014 revealed that nearly US $435 billion were being transferred as part of remittances on an annual basis. This number is likely to have grown significantly since then!

That being said, if a country is receiving a large amount of remittance income, it is quite likely that certain other indicators are becoming increasingly valid, such as a decline in the domestic manufacturing sector and thus, a dip in GDP and per capita income. While remittance may help slow this process, it is important to remember that remittance only cannot sustain an economy. If a country reaches a point where remittances have become a critical component of economic health, this is a sure sign that other domestic factors are in dire need of assistance.

Frequent use of remittance is also a sign that a country’s less wealthy population has become marginalised by their domestic banking system. Given the fact that remittances can occur without the use of a bank, many receivers are opting for third-party providers in order to avoid the lofty fees imposed by larger institutions. If such actions are occurring, it is most likely a sign that money transfer software in domestic banks is considered out-of-reach for many citizens.

Regardless of the positive or negative aspects of money transfer, it seems quite reasonable to assume that these services will become increasingly important over the foreseeable future! With that in mind, learning all there is to know about money transfer will quite likely pay large dividends for those who are preparing for a more globalised future economy.

How to know the reliability of the money transfer company

Money transfer is easily one of the most important and critical services for individuals working around the world. Particularly in situations where individuals are employed in a different country then their official residence, money transfer often provides a much needed ‘lifeline’ by which family members can receive critical financial resources. With demand often comes supply, and in situations of immense demand, it is not uncommon for more dubious service providers to become involved in order to reap a quick profit. The money transfer industry is not immune from these issues of credibility.

How can you properly determine whether or not you should trust a currency exchange company? This is a question that individuals all over the world have to ask themselves on a near daily basis. Perhaps surprisingly, one of the elements of a business’s “trustworthiness” which is easiest for consumers to evaluate is its reputation. Online review sites are widely available, and typically provide customers with an honest, comprehensive overview of a business as viewed by its customers.

Other parameters can also directly influence how you perceive the reliability of a money transfer company as well. These are not directly related to customer sentiment, but instead, are linked to the fine details of the operation aspects of a business. One of the most important examples is exchange rates. Although the buy/sell price for currencies fluctuates noticeably throughout the business day, customers should always do their research before entering into a transaction with a business in order to ensure that they are not losing out on funds due to manipulative exchange rates.

Yet another similar aspect of a money transfer company that should be thoroughly explored before doing business is transaction costs. One of the most common ‘tricks’ that currency exchange services play on their customers is offering highly competitive exchange rates which, unfortunately, are paired with staggeringly high transaction fees. Although customers think they are receiving a good deal, these costs dramatically eat into the sums they receive.

As a general rule, customers should always try to find as much information as is available about a money transfer business. No detail is unimportant. Whether it’s the number of years a money transfer has been in existence or the number of currencies they currently offer, this information may influence your final decision on whether or not they can be trusted. Whatever decision you make, it’s always best when that decision is informed!

Your cheapest option for money transfer

Online money transfer has quickly become one of the most important aspects of the digital economy today. For individuals around the world, money transfer provides a quick and effi-cient way of routing financial resources to families and friends in foreign countries. Particular-ly in situations where someone may be working in a different country than their current resi-dence, money transfer helps ensure that these critical financial lifelines are preserved.

Given the extremely high demand for online money transfer today, a myriad of businesses have entered this arena, making it one of the more competitive industries and over-saturated marketplaces in existence. As a customer, finding the perfect money transfer service can be difficult, particularly if you do not know which specific parameters of the industry you should be researching and comparing. With that in mind, we hope that this brief guide will provide valuable insight into the world of money transfer and help ensure that you have the best ex-perience possible.

Perhaps the most conventional form of online money transfer available today is the bank transfer. If you have an established account with any larger banking institution, the chances are good that you will have access to a variety of online money transfer tools. That being said, do not expect these transfers to be offered at no charge. It is quite common for banks to charge between £5-15 per transfer. As you can see, these expenses will add up very quick-ly, particularly if you are expecting to complete transfers on a frequent basis.

For those seeking an alternative to online bank transfers, services such as TransferWise may be the ideal solution. Studies have shown that TransferWise typically provides a highly competi-tive exchange rate on major currencies, particularly in scenarios where larger sums are being transferred. Although customers transferring less than £400 may be forced to pay slightly high-er transfer fees, the widespread popularity of this service is a testament to its unwavering com-mitment to performance and affordability.

CurrencyFair is yet another option that may customers around the world have chosen to use. Although the base exchange rates for CurrencyFair are typically less competitive than Trans-ferWise, they also offer reduced transaction fees, helping to reduce the overall cost of the ser-vice. It is always important to remember that exchange fees and transfer fees figure prominently into the final cost of a transfer. Ignoring one of these parameters could lead to unpleasant sur-prises over time.

If you are still in doubt as to which service may be the best for your needs, we highly recom-mend that you take the time to survey customer reviews and industry insights into these prod-ucts. There is no shortage of reviews regarding the latest money transfer services. This infor-mation can prove to be invaluable for customers who may be entering this world for the first time and do not have the prior knowledge they need to evaluate the merits of a service based on more technical details. If , for example, a money transfer service has repeatedly failed to deliver funds in a timely manner or at the agreed-upon-rate, this information will likely be available. Reviewers are typically more than willing to divulge both the best and worst experiences they have had with money transfer services. This can only work to the benefit of future customers such as yourself.

If you have any additional questions about money transfer services, we would encourage you to speak directly to representatives from the service provider you are researching. A simple phone call could reveal a variety of insights that could help facilitate a smoother decision making pro-cess. Good luck!

Moving Currency Can Affect Your Investments

With the triggering of Article 50, following the Brexit referendum, the pound fell in value and is going to have many ups and downs, in the near future. A weak pound hits everyone hard, especially if they want to travel, or do business, outside of the UK. The imported goods in the stores are seeing higher prices for consumers in the UK, making their sterling stretched to maintain their lifestyle.

Of course, the weakening of the pound is going to affect purchases as well as travel plans. That might be good news for some businesses in the UK, as they see more people staying home for their vacations and, perhaps, buying locally-sourced goods in the shops.

Shopping and travelling outside of the UK, with the weakened pound, impacts people immediately. It is something that is noticed right away. When it comes to investments, people should also be aware of where their money is. Many investments have currency exposure in other countries and the movement of that currency can cost one a lot of money if they are not proactive in their investments.

Companies and people who have businesses with overseas operations can benefit when converting or moving earnings back to the UK. They will most likely see an increase in profits due to the conversion rate. However, investments that are solely in the UK will see their importing costs, along with fuel and other commodities, rise.

There are mixed views regarding the outlook for the pound and it is best to have a diversified portfolio for your investments. A diverse portfolio can spread your money across a variety of investments and goegraphies. This will help to achieve the best balance between return and risk. Reviewing your investments regularly is a good practice to have, if you do not already do so.

Finding a fund manager is a good idea if you do not have the time to research or manage your investments. A strategy called ‘hedging’ is seen in some funds and it helps to reduce the impact of currency movements. This strategy is usually best left to the professionals.

Yes, turbulent times are upon us and many of our investments are going to be influenced by Brexit and elections in France and Germany, among other things. Hedge your investments, talk to professionals and do some research. It will pay off in the end.

Strategies for Currency Hedging

The world we live in is a turbulent one. Currency is affected by shifts in government and changes within countries such as the UK and Brexit. In turbulent times, which are fairly frequent, companies have access to many ways to maintain their success. One essential part of this is strategies for currency hedging. In order to protect profit margins, there is a skillset needed that requires analysis, proper implementation and market research.

Companies need to have a good understanding of the risks. Being exposed to risks through transactions, economics and translational, means that understanding these risks is the first stage in creating and establishing a made to order currency risk management strategy. For instance, if you have recurring monthly flows, such as payroll, it is wise to be proactive and work with a currency strategist to ensure the timing of your transfers are in line with the best exchange rates you can get.

Work with a currency expert or company you trust. In this way, you can be assured that you understand your risks and the impacts on your bottom line. Making a plan with all of the key stakeholders ensures that everyone has input and everyone understands moving forward.

Automating your currency purchasing is a first good step in any strategy. Work with a reputable company, implement your strategy and be reactive to the small and large turbulence you’re going to encounter. Reviewing your strategic plan, quarterly or semi-annually, will ensure that you are on the right track, and are staying on that track.

The growth in FinTech platforms allows you to automate most of your currency exchange program and keep control of your profitability. Linking yourself with such a platform gives you immediate control and success, using experts in the field to help guide you and keep you on the right path.

The world we live in is a turbulent one, ever changing with ups and downs in the currency exchange market. Finding a company that can help you stay the course with the least amount of harm to your bottom line is the key to success.

VinIt Solutions is Your Solution

Sending money nationally or internationally, exchanging money, trading online, or starting a money transfer business or Bureau de Change, all need the support of a well-known and well-versed company to help you on your way. Trying to figure out what the best way to transfer money can be like trying to figure your way out of a maze. Even Consumers International, an international watchdog, has stated that: “The current industry standard allows for opaque pricing, which obscures unfavourable currency conversion rates, hides the real cost to the consumer and makes it almost impossible for the consumer to ‘comparison-shop’.”

Dealing with exchange rates while exchanging money can be also be tricky, especially if banks are involved. The Australian consumer watchdog, Choice, says: “There’s no way to know how much might go missing in the course of an international money transfer. Unexpected fees and a laughably bad exchange rate could cost you hundreds of dollars along the way – especially if banks are involved.”

They say it’s easy to open a money transfer or exchange office but running it smoothly and cost-effectively is another thing. Knowledge is power and, in these businesses, knowledge comes from experience and constant exploration into the money market world. If you don’t have the experience and knowledge, you can find it at VinIt Solutions.

VinIt Solutions is here to give you support in your endeavours. We have high quality, innovative products that are based on years of experience to deliver easy to use products and services. Our services are second to none. We work closely with our customers, whether they are a small start-up or a large corporation. Operating in full transparency, VinIt connects with customers on a personal level. This allows for professional relationships to grow, so that VinIT can be your solution.

The Swiss Franc scraps cap on Euro

In a move that is bound to have vast repercussions throughout both the domestic and international economy, the Swiss National Bank has determined that the mandated cap on the national currency’s value is no longer justified. Following this decree, the value of the Swiss franc immediately soared almost 30%, setting off one of the most chaotic days of currency trading in the past few years. In additional to the removal of the currency cap, the Swiss National Bank reduced a key interest rate from -.25% to -.75%, a move which has increased the amount of wealth required by investors to hold on to Swiss deposits.mon

Legarde also expressed her confusion as to why the head of the Swiss National Bank did not provide her with advance notice of this move. It is also important to note that the Swiss National Bank refrained from communicating their intentions to fellow central bank governors across the continent.

Although a strong national currency may bolster sentiment within the country, some financial ex-perts argue that the current strength of the franc will make it difficult for Switzerland to maintain their current level of export activity. The chief executive of Swatch, one of the most iconic Swiss watchmaking companies in the country, also remarked on the relative dangers posed by the removal of the currency cap, claiming that the decision would prove to be a “tsunami” for the domestic economy. The price of Swatch’s shares dipped 15% following the cap removal.

Defending their position, the Swiss National Bank stated that their moves were completely justified, due in large part to the fact that recent divergence among major international economies, including the weakening of the euro dollar, have resulted in an economic climate where the Swiss franc is no longer experiencing overvaluation. These evaluations are reinforced by current data gained from cutting edge money transfer software.

It will be interesting to observe the long-term effects of the SNB’s recent moves. Whether or not the Swiss economy will be able to maintain its current health with a dramatically appreciated currency has yet to be seen.

Can You Make Lots of Money Using Forex With No Experience?

For many investors, the Forex marketplace is a topic of fascination and mystery, due in large part to the fact that this particular world of trading is exponentially larger and more volatile than more traditional exchanges. Individuals who have yet to explore the Forex market often ask themselves, “is this worth my time?” Although there definitely is money to be made here, it’s worth taking the time to learn the basics of the Forex markets before embarking down this path.

One of the most crucial elements of Forex trading is leverage. Essentially, Forex traders earn large profits by temporarily borrowing large sums of money for their trades. In some ways, this is a necessity due to the fact that the amount of money earned per unit of currency traded is typically quite miniscule! Only through these larger trades do Forex brokers reap the rewards they desire. That being said, this type of trading does carry with it an inherent set of risks. Fortunately, recent advancements and development in software technology have allowed investors to gain instant access into a powerful catalogue of information relevant to both their trading pairs as well as the larger Forex climate as a whole. These software packages are an integral element of the successful Forex traders arsenal!

Unlike the more conventional stock exchanges, the Forex markets are unregulated. Typically, deregulation translates into larger growth and potential. It’s interesting to note that, due to the nature of Forex trading, investors can earn profits during periods of both growth and decline! Forex trading provides traders with a new set of “rules” that they can use to build a profitable trading system!

If you’re ready to start earning money in the Forex market, your first step should be to ensure that you have the resources you need to succeed! Education, experience and technology are the three key ingredients of successful Forex trading. Although experience can only be earned on the front lines of the Forex markets, you can easily find the analytic software you need to deliver the information necessary for responsible and educated trading .

CIA Gathers Money Transfer Data using the Patriot Act

Recent revelations have brought to light that the CIA are now monitoring and collecting data surrounding money transfers. The United States Counter Intelligence Agency is permitted to gather any relevant information under the Patriot Act which was initiated in the wake of the September 11th attacks back in 2001.

The Act has caused much controversy in the US as it grants authorities the ability to indefinitely detain immigrants suspected of being involved in acts of terrorism with the FBI also being allowed to search telephone, financial and email records without the requirement of a court order.

The CIA are therefore able to gather intelligence from wireless transfer funds through organisations such as MoneyGram and Western Union. This information will only relate to individual suspects who are already being investigated by the Agency in connection to certain acts and they will first have been granted permission prior to obtaining any money transfer records.

The majority of the intelligence obtained by the CIA through this method will relate to transfers between non-US Citizens. However, in cases where an American is involved in a case then the CIA will then need to obtain all relevant personal data through the FBI. It has also recently been confirmed that the CIA is also paying the AT&T (the American Multinational telecommunication corporation) a staggering $10 million a year to access call records. Most logs relate to calls made outside of the US and help to identify individual associates.

Information passed over from AT&T will not contain any personal information or even a phone number, if the CIA requests more information they then have to ask the FBI to subpoena them to hand over further data.

A spokesman for the CIA, Dean Boyd said, ”the CIA protects the nation and upholds the privacy rights of Americans by ensuring that it’s intelligence collection activities are focused on acquiring foreign intelligence and counterintelligence in accordance with US laws”.

In accordance with the Patriot Act, all data gathered must be destroyed within a certain time frame. Suggestions have also been made that CIA currently uses other means to gather data, but as of yet we are unsure as to what this might be. The Agency ultimately aims to acquire all of their intelligence in order to protect its citizens.

African Money Transfer Service wins Court battle against Barclays

TA High Court in the United Kingdom has recently granted an injunction to a remittance provider in Africa over Barclays’ attempt to close the company.

Dahabshiil focuses its remittance work in Africa but mainly in Somalian area. This type of money transfer which enables those who have left their home countries to send money back for their families, accounts for the second largest inflow of money into many developing countries. It is also a very important means of getting aid money into countries like Somalia, with organisations such as the UN, Oxfam and the Mo Farah Foundation all using the money transfer service.

With the country finally trying to get back on its feet after two decades of political unrest, 41% of the natives rely heavily on their remittance income. Somalians use this money for the all important aspects of daily life that developed countries take for granted; such as education, healthcare, clothes and most importantly for putting food on the table in order to feed their families.

Back in May, Barclays made the decision to review their money laundering policy. This resulted in the bank deciding to close a massive 250 companies claiming that they no longer met the relevant criteria. Unfortunately for Dahabshiil they were one of approximately 80 organisations within the remittance sector to be shut down by the bank.

Barclays has come forwarded and stated that they had concerns over money laundering through remittance transfers. The bank also didn’t want to be responsible for unknowingly facilitating any acts of terrorism. Despite this, Dahabshiil do advertise their company as a money transfer service that can be trusted who also clearly state that their customers must comply with their anti-money laundering service in order to combat the financing of terrorism.

This decision, if allowed to happen in the future would massively impact on the country of Somalia. Remittance transfers account for one-third of their GDP totalling $1.2 billion each year. By taking away the means to fund charitable organisations the country would no longer benefit from the help to build new schools, hospitals and wells for clean water – all of which are necessary in Somalia.

Upon hearing of Barclays plans to close down Dahabshiil, many local businesses had concerns. These were then raised with their MPs and has led to the recent battle in a High Court. For now though, Somalia’s remittance transfers will continue as usual despite Barclays’ efforts to put an end to them. They have however said that they will be appealing the Court’s recent decision.

Category: Exchange & Remmitance