When you want to send money to Nigeria, rates are one of the first things that come up. Different international money transfer companies charge different exchange rates. Wondering why that happens? Here’s an explanation.
What Are International Transfer Rates?
The currency in different countries has different values. For example, at the time of writing, $1 USD is worth ₦358 Nigerian Naira, and £1 equates to ₦476 Nigeria Naira. When you send money to Nigeria, rates like this come into play.
What Determines Exchange Rates?
Exchange rates are basically determined by supply and demand. The more demand there is for a certain currency, the more it will be worth.
People exchange money when they are traveling to other countries or sending money to other countries, but on top of that, there are actually investors who specialize in exchanging currencies. They buy a currency when it’s not worth much, and they sell it when it’s worth more. The difference is their profit.
How Do You Find Exchange Rates?
To find current exchange rates, you can do a simple search online. Google in particular has a useful tool for finding exchange rates. However, you will usually find that the rate you see when doing an internet search is not the same as the rate you actually pay when doing a transfer.
Why Do Money Transfer Services Use Different Rates?
When you send money to Nigeria, rates are different than they are online. That’s because the money transfer service rolls its expenses into the exchange rate.
To explain, imagine that you are trying to send money to Nigeria from Canada, and the current rate is $1 CAD to ₦294 Nigerian Naira. However, the money transfer service charges $1.50 for ₦294 Nigeria Naira. In this case, the money transfer service is getting an extra 50 cents for the transfer.
The company uses this money to pay its bills. That includes paying staff, rent for office spaces, upkeeping the website, and related business costs.
Do All Money Transfer Services Roll Their Expenses Into the Exchange Rate?
This is an extremely common practice, and every money transfer service does it. In fact, even banks do this.
If you are in another country and you put your bank card into a foreign ATM, you can pull out the local currency. The bank will calculate the transfer rate for you and debit your account accordingly. Again, however, the bank will charge a little more than the official rate. That covers the bank’s expenses.
How Can You Find Low Rates to Send Money to Nigeria?
When you’re trying to choose a money transfer service, look closely at the rates. Again, when you send money to Nigeria, rates differ from company to company. You should look at the fees that the company charges, but you should also remember to look closely at the rates.
To enjoy low rates to send money to Nigeria, consider Ping Express. This money transfer service is committed to low rates. It maintains low overhead, and it passes those savings onto you the customer.
To get started, check out how it works, or download the app. When you send money to Nigeria, rates are equally low on the website and the app.