How to safeguard your business money transfer from volatility
It’s been a turbulent year for the Aussie dollar. Back in March, the AUD crashed to a 17-year low of 55 US cents before rebounding to 71 US cents last week.And this period of volatility isn’t expected to end any time soon, as headwinds such as escalating US-China tensions and spikes in COVID-19 infection threaten to hamper the AUD’s strong position.So as a business paying overseas suppliers or contractors, you may be wondering: what are my best international money transfer (IMT) moves in these times of volatility? TorFX’s managing director, Nigel Fox says it could partly come down to waiting for opportune moments to make your transfer.“Exchange rates are always moving, with some currency pairs fluctuating by as much as five percent in a matter of weeks,” he says.“Subsequently, timing is everything when it comes to securing the right rate for your international money transfers. Picking the wrong time to move your money could prove costly and eat into potential profit.” To illustrate this, let’s compare AUD/USD exchange rates on two different days.
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