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Finance (102)

Foreign Exchange Dealing Principles

Sunday, 17 February 2013


Principles of Foreign Exchange


Foreign exchange | Principles of forexForeign Exchange, called Forex popularly, involves exchange of currency of one nation for currency of another. If youÔÇÖre in a foreign country, you can spend money only in their currency. This is where foreign exchange conversion comes into the picture ÔÇö you would have to visit a reliable foreign money exchange center to swap your currency with the currency of the foreign nation.

Getting cash in foreign currency directly for the exchange money is one way of foreign exchange conversion. However; extensive consumer penetration into the Internet space has resulted in forex going online. People looking for foreign money exchange can get their work done in a matter of minutes by using forex online.


How Foreign Exchange Works in World Economy

  • Foreign exchange is part of business transactions occurring between nations. For example, if an Indian business wants to import technical equipment from an American company, the Indian counterpart will have to realize the purchase after converting its Indian rupees into dollars to pay the American business.
  • Businesses entering into Foreign exchange need to abide by certain rules with regard to the way they execute and record transactions involving foreign currency exchange. The business:
  • Must define its ÔÇ£functional currency,ÔÇØ which refers to the currency type that the business uses the most for executing its day-to-day business transactions.
  • Must follow dual transaction-recording foreign exchange procedure. The company has to fill in details including time and date of transaction; when providing money details, the business must provide the worth of the transaction in its functional currency and not the foreign currency.


The other record must be of the transaction where the business credits the sale amount in foreign currency to the seller. The foreign currency exchange can result in a profit or loss for the business.


For example, if the foreign exchange rate at the time of the first transaction was greater than during the period of the second transaction, the purchasing company is in for a gain. The gain or loss involved in the foreign currency exchange must be recorded.


  • The purchasing company must be knowledgeable of the prevalent foreign exchange rates. Businesses must base their foreign currency exchange rates as available in the open market (open markets are trade spaces not bound by regulations such as taxes and other, applicable to standard trade activities).


Businesses must partner with reliable banks and foreign money exchange centers to get the right foreign currency exchange rate.


  • Foreign exchange is also employed as a trading format where traders invest to profit from fluctuating currency values. Thus, for example, if on a particular day, the Euro is going pretty strong against the Indian Rupee, a trader can profit from this currency fluctuation by trading on the Euro.
  • Foreign money exchange rates are an inherent part of forex. Foreign currency exchange rate refers to the amount of currency one needs to get an equivalent worth of currency of another nation.
  • Foreign exchange rates are a mirror of a nationÔÇÖs economy. A high foreign exchange rate reflects the high cost of living in the corresponding country. As such, people visiting such countries have to spend more on their purchase.
  • High foreign money exchange rates affect business attraction capacity of such countries. Industries such as tourism can receive a blow because people visiting the country have to pay more to spend time.


How Different Factors Affect Foreign Exchange Working

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A number of factors have a say in determining how a countryÔÇÖs currency sells:

  • Low Inflation ÔÇö When a country experiences low inflation rates steadily, it translates into more buying power for the currency. As such, the currency undergoes a rise in value in comparison with other currencies. In case of high inflation rates, the strength of the currencyÔÇÖs buying capacity falls down, which means you need more currency to buy the same product/ service that was cheaper earlier.
  • Higher Currency Interest Rate ÔÇö Currencies that fetch higher interest rates attract investors from other countries. This is because investors get to profit from the money made by the difference in interest rates.
  • Favorable Economic and Political Ambience ÔÇö A country with rampant political upheavals, riots and violent activities, does not encourage foreign capital flow into the country. Such conditions weaken the countryÔÇÖs currency.


On the other hand, steady economic growth, stable government and an active business environment attract more investments and increase the value of the currency.

Conditions such as heavy government debt can also result in a depreciating currency since increased debt results in inflation. The governments may increase currency supply by printing surplus money; however this doesnÔÇÖt resolve the situation for the supply of merchandise wouldnÔÇÖt increase with the money.

The consequence ÔÇö more money but limited merchandise supply. This leads to an increase in cost, causing inflation, which ultimately drags down the currencyÔÇÖs value.

  • Terms of Trade or TOT ÔÇö TOT indicates the export power of a nation. TOT is expressed as a percentage of the ratio between a countryÔÇÖs exports and imports (i.e. (export value/ import value) * 100).


A TOT value below 100% indicates that expenses on imports are more than revenues on exports while a value above 100% is a positive sign. This means the demand for the countryÔÇÖs commodities is high, which places the countryÔÇÖs currency as well, in high demand.


Use Foreign Exchange Principles to Make Informed Decisions

Knowledge about foreign currency exchange rates and the amount of foreign currency your cash can buy, helps find best foreign exchange rates and save yourself from fraudulent currency exchange centers.


  • Write down the currencies involved. This includes the currency you have in hand and the foreign currency you want to exchange it with.
  • Gather information about foreign currency exchange rates. You could approach a bank or a reputed foreign exchange center, to get the details. Visit different foreign exchange centers to know who provide the best foreign exchange rates.


Ask for foreign currency exchange details from your credit card providers as well; sometimes exchange rates they offer may be less. In such cases, youÔÇÖll have the additional advantage of using a lightweight card instead of bulk cash, especially if youÔÇÖre traveling.


  • Do your calculations and analyze your buying power. If your currency is weaker against the foreign currency, youÔÇÖll have less spending power in that foreign country.
  • Avoid exchanging all your money to the destination currency. Hold back some in reserve while you exchange the remaining currency. Banks are one of the best places to get your foreign exchange done at lower exchange rates.


You can also benefit from well-known forex brands such as UAE Exchange Foreign Exchange, which can provide best foreign exchange rates; moreover UAE Exchange has a very wide network, with at least one branch in all major locations of the world.


Keeping with times, UAE Exchange has graduated to online forex services. Exchange your currency in minutes with this service.




Xpress Money, one of the most dependable global money transfer brands, on Tuesday announced a free remittance drive to Palestine from the Middle East, expressing its solidarity with the people of Palestine suffering from the Gaza  strife.

In a statement, Xpress Money said that the free remittance drive will help members of the Palestinians transfer funds to kith and kin in Palestine free of cost for a month starting from Nov.24, 2012 till Dec.20, 2012.

ÔÇ£There will be no charges or commissions at the send and receive end of the money transfer chain,ÔÇØ said Sudhesh Giriyan, Vice President & Business Head, Xpress Money.

K. R. Kamath (left), Chairman and Managing Director, PNB, and Y. Sudhir Kumar Shetty, COO-Global Operations, UAE Exchange, at the launch of a co-branded prepaid remittance card in Kochi on Friday. ÔÇô H. Vibhu
K. R. Kamath (left), Chairman and Managing Director, PNB, and Y. Sudhir Kumar Shetty, COO-Global Operations, UAE Exchange, at the launch of a co-branded prepaid remittance card in Kochi on Friday. ÔÇô H. Vibhu
Kochi, Nov 2:

Xpress Money has announced the launch of IndiaÔÇÖs first remittance card ÔÇô the PNB Xpress Money Remit Card ÔÇô in partnership with Punjab National Bank.

It is a prepaid product that offers dual benefit of ÔÇ£debit plus remitÔÇØ.

K. R. Kamath, Chairman and Managing Director, PNB, said customers anywhere in India can withdraw foreign remittances through ATMs using the card. The card will be accepted at Point of Sale (PoS) terminals for shopping needs.

The card, facilitating foreign inward remittances under Money Transfer Service Scheme (MTSS), will enable Xpress Money customers to send and receive money overseas.

Recalling the changes in the remittance business from bank drafts to cash and later cash to card, Kamath said that the new card is a cost-effective and time-saving channel for customers, eliminating the hassles of agent visits, backend charges and other related payment issues.

The card also enables users to make partial or complete withdrawal of funds.

According to Y. Sudhir Kumar Shetty, COO ÔÇö Global Operations, UAE Exchange, the prepaid card facility will be available to the beneficiaries free of cost and with no annual fees at any of the UAE Exchange branches in India.

Speaking on the occasion, Sudhesh Giriyan, Head, Xpress Money Business, said the company is confident that Indian users will benefit immensely from the convenience, flexibility and security offered by the card.

The cardholders can withdraw up to Rs 25,000 a day through ATMs and be used for shopping across PoS machines anywhere in India, he said.

Last few months have been joyous for Indian expatriates worldwide. As Indian rupee ran down the ladder, excitement among the Indian Diaspora found a new zenith. De-regularisation of NRI interest rates in December 2011 brought much cheer to Indian expats. The status of the Indian rupee in 2012, so far, (a whopping 13 per cent low) has only widened the grin on their faces.

Around 27 million Indians live outside their motherland in across 190 countries, of which over six million expats are in the gulf. Together they ensured that $ 64 billion was sent to India as remittance in 2011, sustaining its position as the highest receiver of remittances as per the World Bank statistics. The ÔÇÿremittance to IndiaÔÇÖ graph has been steep in 2012 too. The falling rupee encouraged Indians to send more money home. Once they ran out of their money to send home, they turned to the bankers, who have happily opened their coffers for loan applicants.

The counters of remittance houses also have been quite busy helping Indians to remit money. One of the brands trusted by this enterprising community is UAE Exchange. This leading global remittance and foreign exchange brand, a favourite among the expatriates from the sub-continent, has been enabling them to send money home since over three decades. They could send it from any of the easily accessible and widely networked branches, worldwide.

Xpress Money, the instant money transfer service with over 135,000 payout locations in more than 125 countries; FLASHremit, the real-time bank account credit service;, the convenient online money transfer portal by which money can be sent to any corner of the world in just a few clicks from an internet environment anywhere; Smart Pay, the WPS-compliant leading payroll solution; gocash, the prepaid travel card; and XPay, the online bill payment service using mobile phone, are some of the popular services offered by UAE Exchange. Along with these the customers can also make payments for their utility bills, credit card bills, school fee, subscriptions and more. All these made UAE Exchange a true financial supermarket.

But the remittance major hasnÔÇÖt stopped there. It has walked extra miles to ensure that its customersÔÇÖ dear ones too could easily collect the money sent, from their nearest UAE Exchange branch in India. This was made possible with the network of branches built across the length and breadth of the country. This 280-plus strong network is the largest in a single country, among the entire global operations of UAE Exchange. So no matter where the beneficiaries are, they will find a UAE Exchange branch near them. Adding to this is the brandÔÇÖs strong correspondent relationship with over 30 banks in India, which added more convenience to the family members of the Indian expatriates.

UAE Exchange has a strong relationship with all the communities that it serves, but has a special bond with the community from the worldÔÇÖs largest democracy. It has always shared their dreams and aspirations. To bring more value to them the remittance major has lined up exciting promotions like Money Majlis, Onasowbhagyam and more, which give out high value prizes like villas, cars, gold etc. These value-laden promotions have enabled this enterprising community to realise their long standing dreams.

India has always stood up against every challenge that has raised its hood and has emerged a winner. The nation derives its true strength from the strong values that it has got in legacy from its rich culture and heritage. Similarly UAE Exchange too has strong values, from which it continues to derive its strength to succeed. The remittance major is inspired by the zeal of India and reinforces its commitment to derive quality from values at all times, emerging successful ÔÇö very much like India.


For more information please visit our nearest Branch Location or log on to UAE Exchange corporate website


@Daily tribune Bahrain

A ceremony was held at the Bahrain Keraleeya Samajam to announce the rehearsals of a drama, Tipuvinte Aarcha, directed by Prakash Vadakara. UAE Exchange Country Head was the chief guest. The lead roles of Tipu Sultan and Unniyarcha will be performed by Mr Prakash and Jaya Menon. Right, Mr Nair inaugurating the event by lighting the traditional lamp. Below, the cast of drama.



For more information please visit our nearest Branch Location or log on to UAE Exchange corporate website


UAE Exchange inaugurates its Head Office in new premises. It is yet another step by the brand to bring better quality service to its customers. The new head office will monitor quality and ensure that the best reaches the family members of its expatriate customers, across the country, who trust the remittance major to transfer their hard-earned money.


For more information please visit our nearest Branch Location or log on to UAE Exchange corporate website

  • Customers can make their payments at any UAE Exchange counter in the UAE



  • Customers can make their payments at any UAE Exchange counter in the UAE


UAE Exchange, the leading global remittance and foreign exchange brand, joins hands with Cozmo Travel, a leading travel company in the UAE, to provide a new payment option for their online bookings. Now, Cozmo Travel customers can make their payments and confirm their online bookings at any UAE Exchange counter in the UAE.

ÔÇ£It is a priority for us to partner with those brands, who strive to achieve customer delightÔÇØ, said Mr. Y. Sudhir Kumar Shetty, COO ÔÇö Global Operations, UAE Exchange. ÔÇ£We are glad to join hands with Cozmo Travel. This new payment option would certainly benefit the customers of Cozmo Travel, as UAE Exchange has a wide network of branches in the UAE, which can be accessed easily from any point in the country. Our extended branch timings would also add more convenience.ÔÇØ, he added.

Jamal Abdul Nazar, General Manager, Cozmo Travel, said, ÔÇ£We are happy to partner with a reputable remittance brand like UAE Exchange. We are sure that this partnership will turn out to be a real value addition for our customers, considering the strong branch network and service quality that UAE Exchange is known for.ÔÇØ

UAE Exchange offers a wide range of services, which meets most of the financial needs of its over 3.5 million customers, worldwide. The range includes Xpress Money, the instant money transfer service with over 135,000 agent locations in more than 125 countries; FLASHremit, the facility for real time account credit;, the convenient online money transfer portal by which money can be sent to any corner of the world in just a few clicks; Smart Pay, the WPS-compliant leading payroll solution; and XPay, the online bill payment service using mobile phone. These popular services and other bill payment facilities have made UAE Exchange a true financial supermarket.

UAE Exchange has more than 570 direct offices across 29 countries, which makes it the worldÔÇÖs largest networked, among remittance brands. Its correspondent banking relationship with over 150 global banks adds to it.

Cozmo Travel, under the wings of Air Arabia, was launched in 2010. With an year-on-year growth of over 150%, in the past two years, its services are now available in Abu Dhabi, Sharjah, Ajman and Ras Al Khaimah. Cozmo Travel answers various travel needs with services including airline tickets, holiday packages, corporate travel management, visa processing, travel insurance etc. Their services are set to expand in the near furture, covering all the seven emirates of the UAE and the rest of the countries in the GCC.

The event, which announced the partnership, was attended by senior officials of UAE Exchange and Cozmo Travel, along with special invitees and the Media.

Published Date: April 04, 2012

For more information please visit our nearest Branch Location or log on to UAE Exchange corporate website

Dealing With Foreign Exchange

Tuesday, 03 April 2012


foreign exchange

Foreign Exchange aka Forex is the conversion of one country's currency for another. Forex Market is a volatile and complicated space, where the traders need to be alert, while making a deal. Forex market is never an easy space, because of its complexity, when compared to the stock market. It is better to know the rules of the game, before gathering the courage to break them.

The first and the foremost thing we need to be aware of is that Forex trading is not done with an aim to earn income. Though Foreign exchange trade allows you to enjoy a good ROI annually, still you should always be prepared to face ups and downs in your dealings. So it is always advised that you have another source of income, which offers you a breathing space in the difficult times of your dealings.


Various social, economic and political factors, from across the world, influence the forex trading. This makes the market dynamic and keeps even the seasoned players guessing about the next course which it might take.


Profiting from foreign exchange trade depends on the timing of the deal. Ultimately, the trade is about understanding and mastering the skill of making the deal at the right time. Patience at the game is very essential and we should wait for the market to take a turn in
our favour.

Being conventionally innovative

The safest way to manage forex trade is to go the conventional way, which has always yielded good results. We need to experiment while staying within the realms of time-tested paths. Therefore we need to have a well-written script for your dealings and reduce the negative impacts of risk-taking through a calculated approach.


For more information please visit our nearest Branch Location or log on to UAE Exchange Forex website


Pakistan is one of the strongly developing nations with a promising future. This sacred land had to rise against a variety of challenges to conquer its destiny. How it achieved this amazing feat is an inspiring saga. One brand that imbibed this inspiring spirit is UAE Exchange, the leading global remitance and foreign exchange brand.

As the Pakistani community, across the world, rejoices on the 72nd Pakistan Day, UAE Exchange joins in to share the joy with them. The favourite remittance partner of Pakistani expatriates, UAE Exchange enjoys a special relationship with them. The brand has been helping these hardworking people to stay connected to their loved ones, back home, with its close to 600 direct offices across 30 countries spanning five continents. Adding to its might is the strong correspondent banking relationship with over 150 global banks, of which more than 10 banks are from Pakistan including Allied Bank Limited, Askari Bank Limited, Bank Alfalah Limited, Habib Bank Limited, MCB Bank Limited, National Bank of Pakistan, Standard Chartered Bank, United Bank Limited, Bank of Punjab, Dubai Islamic Bank Pakistan Limited, NIB Bank Limited, Bank Al Habib Limited and Summit Bank Limited, to name a few.

UAE Exchange offers the widest range of services, among exchange houses, below a single roof. For this conenience, customers consider it as a financial supermarket. Of all the services, a special mention should be made of Xpress Money, its instant money transfer service, which is a vavourite among Pakistanis living outside the country, to send money to their loved ones back home. Supporting this transfer process, effectively, is the instant money transfer brand's against network of over 135,000 agent locations in 125 contries.

The quality financial services, excellent customer service and value from UAE Exchange have made the Pakistani customers, give the brand, a special place in their hearts. As a token of appreciation for this exceptional community, UAE Exchange offers them value-laden promotions like Money Majlis, which offer exciting prizes. The brand also offer free remitance facility to its beloved Pakistani community.

UAE Exchange has fostered a strong association with all the communities, but enjoys a special bonding with its Pakistani customers. On the occasion of Pakistan Day, the world's trusted money transferrer salutes this great nation for its resolve to pursue its vision, courageously.


"Also Visit - UAE Exchange launches Jashan-e-Bahara 2012" :

UAE Exchange launches the 2012 version of Jashan-e-Bahara promotion, which will give away a total cash prizes worth PKR 1,500,000 and 60 mobile phones.



For more information please visit our nearest Branch Location or log on to UAE Exchange corporate website


UAE Exchange launches the 2012 version of Jashan-e-Bahara promotion, which will give away a total cash prizes worth PKR 1,500,000 and 60 mobile phones. All you need to do is to make a remittance transaction to Pakistan at any of the UAE Exchange branches in the UAE between March 1 and April 29, 2012 to get qualified for the corresponding monthly draw and the mega draw.

In the two monthly draws, which happen on April 2 and May 2, 2012, respectively, a total of 40 lucky winners will bag PKR 25,000 each and 60 winners will take home Magnus mobile phones. The mega draw on April 29, 2012 will have a lucky customer winning a mega prize of PKR 500,000.


For more information please visit our nearest Branch Location or log on to UAE Exchange corporate website


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