Sunday, December 30, 2018

Before Making A Money Transfer Know What The Restrictions Are

Sending money abroad is not as complicated as it was a few decades ago but you should be aware that many Governments worldwide impose restrictions on foreign exchange payments and on possession of foreign currency. These restrictions can apply to local residents or non-residents alike and knowing the local legislation will help you avoid unnecessary complications. Of course, it is hard to be acquainted with the local laws and regulations in detail; therefore, taking a good advice from an expert specializing in money transfers is more than advisable.

Various forms of foreign exchange controls exist but you do not have to know all the details of a particular foreign exchange territory. The important details related to money transfers include: whether a restriction on the amount of currency that is transacted is in force and is there a restriction on who can conduct foreign currency exchange transactions (in some countries only state or government-approved companies can be engaged in the exchange of foreign currency). A stricter form of a foreign exchange control can impose restrictions on the use of possession of foreign currency.

If your money transfer is to be processed by a state-controlled foreign exchange dealer, there is a greater chance to get an unfavourable exchange rate or to be subject to additional fees and commissions. A form of a special currency time is the currency board but the existence of such a monetary authority protects and supports the local currency so it is in advantage to a foreign currency sender in general.

At this stage you must turn to a reputable money transfer specialist who is familiar with the local specifics of the beneficiary's country. Unfortunately, the number of countries where strict exchange controls are in force is constantly changing in the process of globalization and economic liberalization.

Some major countries, which still exercise some kind of foreign exchange controls, include Argentina, Brazil, China, Egypt, India, Malaysia, Morocco, Nigeria, Tunisia and Venezuela. However, this list is large incomplete and you will need to delve into the specific type of foreign currency regime in force for that particular country. Your money transfer expert will provide you with a more populated list of countries and will be able to explain to you all the details related to a certain country.

A complicated situation can occur when a country allows only "reasonable" foreign currency transactions to be connected. "Reasonable" is a flexible term and unless explicitly specified it will be up to a government official or a designated state body to decide what amount of foreign currency money is a "reasonable" sum. Although only a few countries imposes such a restrictive foreign currency regimes, they still exist and you must consider it before sending funds to such a country. Growing number of world governments liberalise foreign currency exchange regulations but taking an expert advice will help you familiarize with all applicable regulations.












  • A Birthday Is More Than Balloons, Involving the Kids to Be a Part Of The Birthday Decor Prep Birthdays are special occasions that bring extra happiness and surprises. It's a day that captures special moments for the family members, relatives and friends. The excitation for the birthday plans starts from the very previous day. Every…
  • Get Help With Managed Debt Solutions You are in debt and are getting desperate? There are ways to get out of these toils, and it is a good idea, before you start, to think well about how you got to where you are now. This is very important. Write down the choices you made, keep…
  • Best Friendship Quotes With Explanations to Make Your Friendship Better You must have lots of friends. Let me tell you that having lots of friends does not matter but having true friends matters a lot. You often read lots of quotes on friendship but I would like to share some of the best friendship quotes ever. …
  • My Tips on Improving Your Finances for Life There is no way to avoid dealing with money and finances these days. Therefore you should try to learn as much as possible to help you make good financial decisions and to increase your confidence about money. When you make a budget, it…
  • Establishing Your Business Network The business network is one of the most valuable tools that any business can possess. While having a great business idea and or product can get you rolling, the connections you make with the business world are what keep you going. Business…