Foreign Exchange Rate or Forex Rates are an important aspect of the world economy. It helps determine the economic valuation and health of a country and its people. It is an extremely important and critical for businesses, imports and exports, travellers, tourists, immigrants, investors and banks both domestic and international.
How is the Foreign Exchange Rate determined?
The value of every currency is different and this is determined by the economic status of the country. Does it make you wonder as to why foreign currency matters to us? Forex is extremely important for import and export without which we would have limited access to goods and services. When the trade happens across countries, it improves prospects and adds considerably to the global economic growth. This is exactly why exchange rates play an important role in the economy. As such, it will not be entirely wrong to say that the forces of demand and supply are the ones which fix the currency prices.
Who regulates Foreign Exchange Rate?
The Financial Services Authority is the one that regulates the forex. The Forex market works round the clock and is responsible for the efficient trading that happens between nations. New York, London, Hong Kong and Tokyo are hailed as the main trading centres. In India, all forex trade is done and regulated by the National Stock Exchange and the Bombay Stock Exchange.
In India, trade mainly happens in currency pairs. The Indian Rupee mainly gets paired with the US dollar, Great Britain Pound, Euro and the Japanese Yen. For a common man, understanding the finer points of Forex might come across as a task. As a traveller, they might leave you confused. So, here we are trying to decode the forex mystery in the simplest possible way.
When travelling to a foreign land, it is extremely important that you use the local currency for all transactions. You can get your forex cash through Thomas Cook Forex Services. Here you can buy forex at a locked price. Yes, the forex rates keep fluctuating but getting your forex in advance will help you save a lot of time and effort when you are on the go.
When do you sell or buy to get the best Foreign Exchange Rate?
Foreign exchange rates are determined by a number of market forces such as:
- Political Environment
- Market Forces of Supply and Demand
- Economic Conditions of the country
- Overall Socio-Political Conditions of the world
As such, it is difficult to determine the best foreign exchange rates at any given point of time. The only thing one can do is study the historical data, the above conditions and then make an educated, calculated guess in order to buy and sell foreign exchange.
Getting the Best Foreign Exchange Rate before Travelling
When you are travelling abroad you buy forex, which is mainly the local currency at an exchanged rate. You can use a forex card and cash for transactions while you travel. In case you run out of cash, you can always reload your forex card from anywhere. However, post your trip there are chances that you may still have a foreign currency that you wouldn’t really be required anymore. In a scenario like this, you can sell it. The buy and sell rates vary. Thomas Cook Forex Services can help you buy and sell forex at the best possible rates.
The exchange rates keep fluctuating so you might want to wait and check on days when you think you are getting a good value for the forex. Getting in touch with Thomas Cook executives will help you understand the process and procedures better.
Foreign currency is important especially when we travel, simply because that’s the only way to transact in a foreign land. Be it paying for a cab fare or just buying a meal. Carrying a lot of forex cash is not recommended and you can opt for forex cards which are prepaid and can be reloaded anytime. These cards are also convenient, safe and smart. Thomas Cook forex cards make sure you don’t just save money on conversion rates but also a lot of time since the prepaid cards are accepted at most places.