Updated: May 22
Transferring money to Mauritius – how to maximise your transfers
If you’re buying a property in Mauritius, or you have incomes and outgoings from overseas, it’s likely that you’ll need to exchange currencies.
But the currency market has grown increasingly volatile in recent years, with the Covid pandemic, surging inflation and the Russia-Ukraine war all creating instability.
Fortunately, there are ways to protect against this volatility. With a little understanding of the forex market and plenty of support from currency experts, it’s much easier to time your transfers and get the most out of your money.
Simply put, foreign exchange – or forex – is when you swap one currency for another. The amount you get from the transfer depends on the exchange rate. If the pound to Mauritian rupee (GBP/MUR) exchange rate is 55.00, you’ll get Rs55.00 for every pound.
Of course, exchange rates are always changing. Various factors affect a currency’s value, from domestic economic data and central bank policy to global geopolitics and investors’ appetite for risk.
As a result, a currency’s value is constantly changing, making the forex market one of the most volatile trading platforms in the world. And at times of uncertainty – such as over the last few years – these movements can become even more pronounced and unpredictable.
In May 2022 alone, GBP/MUR fell to a 17-month low of Rs52.51 before recovering to Rs55.32. That’s a change of over 5%, or Rs560,000 (around £10,000) on a £200,000 transfer.
Meanwhile, not all exchange rates are equal. Different banks and currency brokers will offer different exchange rates, and some will attach transfer fees on top of the agreed quote. Just a small discrepancy can translate to a significant amount when you’re transferring larger funds.
Clearly, it pays to be informed when it comes to forex. So, here are some things you need to consider.
Transferring with a currency broker or a bank?
The two main options when transferring money are to use a bank or a currency broker, and the latter is most often the best choice.
Banks are not currency exchange specialists. As such, they tend to offer a more limited range of transfer options, less tailored support and less competitive exchange rates.
As large financial institutions, banks work on higher margins. This means they’re likely to charge more for your transfers than other specialist providers, leaving you with less of your exchanged currency.
They also may apply additional transfer fees, which you can avoid with some currency brokers. If you’re making regular transactions, such as moving a monthly income or paying overseas expenses, these fees can quickly add up.
So, by going with a specialist broker, you could get a much better deal.
Timing your transfers, check the link below
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