Currency conversion or currency exchange is one of the most important parts of your study abroad plan. If you know about currency exchange properly then you will be able to get more money on exchanging. When you study in a foreign country like the USA or the UK, you may have to exchange your currency to manage expenses. There may be some hidden charges in currency exchange that can cause loss. If you will try to maximise the amount on exchanging currency through strategic investments then it will help you to make the most of your funds while studying abroad. Continue reading further to know the important factors of currency conversion.
Table of contents
1. Exchange Rates and Timing
Exchange rates fluctuate frequently based on global economic conditions. It’s very important to monitor these rates and exchange your money when the rate is favourable and the currency is cheaper. Forex tips for international students must be understood properly. You can use Forex apps and tools to track rates in real time. If you notice a dip in the currency of the country where you are studying, it might be a good time for currency conversion.
2. Multi Currency Forex Cards
Forex cards are prepaid cards that you can load with foreign currency before you leave India. These cards offer better exchange rates compared to currency conversion at airports or foreign exchange bureaus. Multi-currency travel cards offer a lot of benefits such as security, easy loading, multiple currency options, zero markup fee etc. Forex card has a wide acceptance at most locations abroad. Some banks offer student forex cards with special benefits like no transaction fees and discounted rates.
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3. Invest in High-Interest Savings Accounts
There are a lot of banks that offer dedicated schemes for student bank accounts. You can open a high-interest savings account in the country where you are studying. These accounts usually offer better interest rates compared to domestic savings accounts. By depositing certain amounts in these accounts, you can earn interest.
4. Hedge Against Currency Risk
Currency hedging refers to setting up regular international transfers through services that allow you to lock in exchange rates. Some banks and forex services offer forward contracts which let you fix an exchange rate for a future date. Currency hedging is one of the best ways to exchange your money in a foreign country.
5. Diversify Your Investments
Investing in a mix of assets can help spread risk and potentially increase returns. You can invest money in multiple options such as mutual funds, ETFs (Exchange-Traded Funds), and stocks in both your home country and abroad. Some platforms allow international students to invest in global markets. Conduct thorough research and seek advice from a financial advisor to understand the risks and benefits. Forex trading is also a good option to invest. However, learn before you invest.
6. Avoid High-Cost Transactions
The transaction fee and the commissions charged by service providers can be high. You should always check the transaction fees and foreign exchange charges before initiating the transaction. You can use international student bank accounts that offer zero or low transaction fees as well as offer exchange facilities. Compare different services to find the best rates and lowest fees while transferring money.
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7. Stay Informed and Educated
The financial world is extremely volatile, especially the forex rates and trading. Before exchanging the currency, you should understand the exchange rate history also. Staying informed can help you make better decisions. You can subscribe to financial news and follow market trends. Also, taking online courses on forex trading and investment strategies can help to understand better.
Currency conversion requires a combination of strategic planning, smart investments, and continuous learning so that you can utilise your funds in the best way and exchange it at a cheaper rate. Always understand all the details before initiating any kind of currency exchange. Check some of the FAQs based on the same below.
FAQs
Exchange rates fluctuate frequently due to global economic conditions. Hence, it is necessary to monitor these rates to maximise your money on Currency Conversion.
Forex cards are prepaid cards loaded with foreign currency. They offer better exchange rates compared to cash exchanges at airports or foreign exchange bureaus. These cards provide benefits such as security, easy loading, multiple currency options, and zero markup fees.
Opening a high-interest savings account in the country where you are studying can help maximise your return. These accounts usually offer better interest rates than domestic savings accounts which allows you to earn more on your deposited funds.
Currency hedging involves setting up regular international transfers through services that allow you to lock in exchange rates. This can be done through forward contracts offered by some banks and forex services.
The financial world, especially forex rates and trading, is highly volatile. Staying informed about exchange rate history and market trends can help you make better decisions when exchanging currency.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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