Every year, millions of people in India make international money transfers abroad. From managing education to property, and more, there may be many reasons to transfer money from India to the UK.
With the UK-India remittance corridor being one of the largest ones globally, it is extremely crucial to be mindful of it. The worst part? A lot of the money sent often doesn’t arrive on time because of fees and exchange rates.
This article explores how exchange rates affect international money transfer from India.
Why Do Exchange Rates Matter for International Money Transfers?
When you are making an international money transfer from India to the UK, it is crucial to be aware of exchange rates. You have to be mindful of what the exchange rate is at the time of the transaction. When the Pound is strong, it means that you will receive more value in GBP for your INR.
On the other hand, when the Pound is weak, you will receive less value for the same amount transferred. Small fluctuations in the exchange rate for GBP to INR can have a significant impact. Therefore, if you transfer large amounts of money regularly, even minor fluctuations can create noticeable differences.
Do Exchange Rates Impact When You Send Money to India?
Yes, GBP to INR exchange rates have a significant impact when you’re making an international money transfer from India. For example, because of exchange rate fluctuations, the final amount received in GBP may vary.
The difference in exchange rates also leads to spreads and fees. Some providers may include a margin, which is usually the difference between the rate offered and the mid-market rate. To ensure that you get the best rates, you have to monitor trends closely.
Forex rates can vary depending on geopolitical conditions, on a daily and even hourly basis. You can turn on notifications for Thomas Cook to stay updated on real-time market rates. This will help you transact at the most favourable time and get the best value.
What Factors Influence the GBP to INR Exchange Rate?
For international money transfer from India, it is important to understand the factors that affect exchange rates. This can help you assess market conditions and lock in better rates.
The key factors affecting exchange rates are as follows:
Inflation rates: When the inflation in the UK is low, the currency tends to grow over time. The inflation in India being higher than that in the UK will see the rupee being weaker than the pound. Therefore, for the money transfer, it may not be a favourable time.
Interest Rate Differentials: The central banks of respective countries set their benchmark interest rates. In India, it is the Reserve Bank of India, whereas for the UK, it is the Bank of England. The UK interest rates may rise, while those of India may remain stable or fall. In this case, the Pound will strengthen, and the remittance value will increase.
Market Conditions and Global Events: The GBP rate today will likely be influenced by market conditions and global events. Economic slowdown, geopolitical tensions, and war-like situations can create a shift due to volatility. As a result, exchange rates will significantly vary even in a short period of time.
Political and Economic Stability: There are different political events that can impact the exchange rates. These usually include elections, fiscal policies, and government-implemented changes. It impacts the investor sentiment and eventually the exchange rates.
Trade Balance: Countries where imports are higher than exports will have currency depreciation. In this case, different aspects like oil prices, bilateral agreements, and trade relations between the UK and India can impact the pricing.
As an NRI, it may be slightly challenging to plan transfers if the market is highly volatile. Thus, when making an international money transfer from India, the amount received in GBP may vary for the same INR amount.
How to Get the Best Exchange Rates for Online Money Transfer?
If you want the best exchange rates, you should buy forex from a reliable platform like Thomas Cook. While it may be difficult to control the exchange rate movements, it’s crucial to monitor the strategies to understand the impact.
Here’s how to get the best exchange rates:
- You should track the rates regularly. Turning on the notifications on Thomas Cook for the GBP rate today can help you track real-time rate fluctuations.
- Never opt for last-minute transfers, as you may not get favourable rates. Plan so that you have flexibility for better rates.
- Lock in the rates before completing the transaction. Doing so will protect against unwanted rate fluctuations.
Conclusion
If you are planning an international money transfer from India, staying updated on real-time exchange rates is essential. Thomas Cook offers a reliable platform with features like rate lock-in and real-time notifications, ensuring convenience and transparency. As an RBI-authorised platform, it provides a secure and trustworthy way to transfer money abroad.