This article was first published on YouTrip
In Singapore, we probably first got in touch with currency exchange rates while growing up. Our families would flock to the money changer before heading for the weekend trip in Johor Bahru, or even when the Malaysian Ringgit exchange rate dipped.
Currency exchange rates fluctuate constantly as it reflects a country’s economic performance. On top of that, the foreign exchange market never closes because when it’s 6pm in Singapore, the day’s only getting started at 5am in New York.
The market is still essentially driven by human beings like you and me, so things do tend to slow down a little over the weekends or during major public holidays like New Year’s Eve. To keep up with the pace of change, currency exchange rates sites update their rates every minute.
However, money changers cannot update that quickly and rely on a larger fixed interval depending on their preferred speed. And money changers operate within fixed hours, further restricting your ability to change currencies at an opportune time. In addition, you’ll also have to account for the travelling and queuing time (expect it to be longer especially when a popular currency dips).
All of these circumstances stacked against you can cause you to lose out on a good exchange rate.
The Real-Time Advantage
With currency exchange rates moving at such a fast pace, you want to be able to spot a good rate and lock it in as fast as you can. This is why YouTrip enables exchange rate conversion in real-time, allowing you to take full advantage of a favourable exchange rate – right at the moment it happens.
With the “Exchange” function in the app, you’ll be able to convert and lock in 10 major currencies (SGD, USD, EUR, GBP, JPY, HKD, AUD, NZD, CHF, SEK) without even leaving your seat.
The exchange rates displayed in the app are Wholesale Exchange Rates – currency exchange rates that are close to what is published on Google!
Knowing When to Exchange
Now that you wield the power to exchange currencies anytime, do you know when to get the best rates?
If you still remember, a country’s currency exchange rate reflects its economic performance. Anything that affects a country’s economy negatively can lower its exchange rate, and vice versa.
So if you see in the news that a country is experiencing political instability, increased inflation, natural disasters, recession or even excessive government debt, you can expect the currency exchange rates to drop.
On the other hand, if tourism is booming and the country is making progress in areas such as innovation and international trade, its currency should be on the climb.
To keep track, subscribe to a google news alert to observe the country you are interested in. Alternatively, there are websites that monitor currency exchange rates. Some sites even allow you to add conditions that trigger a notification.
So keep an eye on your desired currency and lock down good exchange rates when the time is right. This way, when you spend overseas, the rates will always be in your favour! Need a vacation inspiration? Here’s 5 cheap getaways for June holidays this year!