The Advantages of Foreign Currency
It’s time to shatter the myth that it’s easier to send your own domestic currency abroad than it is to send foreign currency.
The truth of the matter is sending foreign currency can be simple and less expensive than sending domestic currency to a foreign account. How can this be? Funds can travel a more direct route when you send foreign currency. When you send USD abroad, you must initiate a USD wire transfer that then passes through a correspondent bank. The correspondent bank can take a fee, determine the current exchange rate and then transfer the funds to the ultimate destination.
It’s works, of course – but there’s complexity. And you don’t know ahead of time what exchange rate you’ll pay. If it’s higher than you expected, your recipient will receive less than you thought, potentially resulting in all kinds of inconveniences.
When you send foreign currency, it can be simpler. Your client knows the exchange rate up front. You initiate an international transfer for the exact amount and debit your client in their own domestic currency. In many cases, funds travel directly to their destination with no pit stop at a correspondent bank. They arrive in full to the recipient in their local currency. No exchange rate surprises.
The story to share with your clients is: sending foreign currency is simple, direct and can be far more predictable than sending domestic currency.
Here’s some more info about the advantages of foreign currency.Info sheet