The number of online banking users is expected to reach 3.6 billion worldwide by 2024. These are users of such large banks as JPMorgan Chase, Aflac, and Citigroup Inc. who conduct transactions with fiat currency, as well as with cryptocurrencies, such as Bitcoin or Ethereum on Binance or other exchanges. A huge advantage when conducting online transactions is the ability to evaluate the exchange rate of currencies or cryptocurrencies. If you regularly or from time to time conduct currency transactions, we recommend that you turn to Rates. In this article, you will learn more about the benefits of tracking the exchange rate.
Why It Is Important to Track Exchange Rates For Those Involved In International Trade
Tracking exchange rates is an important task for companies and people involved in international trade, and helps them make decisions about pricing, risk management, market expansion, and financial planning. Tracking currency exchange rates is an important aspect for those involved in international trade for several reasons:
Price determination.
Currency exchange rates affect the cost of goods and services in different countries. When carrying out international transactions, these differences in prices must be taken into account. Tracking rates will help determine the best prices for products, taking into account currency fluctuations and competitiveness in the market.
Currency fluctuation risk.
Currency exchange rates are subject to fluctuations caused by various factors such as economic conditions, political instability, inflation, etc. These fluctuations can affect the cost of goods and services, as well as the profitability of transactions. Rate tracking helps you identify and manage currency fluctuation risks and take appropriate action, such as using financial instruments to hedge the risk.
Budgeting and planning.
Tracking currency exchange rates helps predict international transaction costs and budgets. This allows you to more accurately estimate the costs of purchasing goods, logistics, marketing, and other costs associated with international trade. Planning based on current exchange rates allows you to more effectively manage financial resources and predict business profitability.
Competitive strategy.
Knowing and understanding currency exchange rates allows companies to develop more competitive strategies. Some companies may use changes in exchange rates to their advantage by looking for countries with lower production costs and more favorable exchange rates to export goods and services. Course tracking helps identify such opportunities and take appropriate action.
Who Needs to Track Currency Exchange Rates
In January 2023, the euro and the US dollar together accounted for more than 7 out of 10 SWIFT payments worldwide. Tracking currency exchange rates can be useful for various groups of people and organizations. Here are some examples:
- Investors and traders. People who invest in financial markets or trade currencies should keep track of currency exchange rates. This allows them to make informed investment decisions, analyze the market and predict future changes.
- Travelers. People planning to travel to another country, such as Canada or the United States, can track currency exchange rates to get the best exchange rate before leaving. This will help them save money when exchanging currency.
- International entrepreneurs and companies. Individuals and companies involved in international trade should keep a close eye on exchange rates. It helps them price goods and services, manage risk, budget and plan international operations, and create competitive strategies.
- Economists and analysts. Professionals in the field of economics and finance actively monitor exchange rates, as they reflect the state of the economy of various countries. This data helps them analyze and predict economic trends and events.
- People making international transfers. People who send or receive money from abroad can monitor exchange rates to determine the right moment to make the transfer and minimize currency conversion losses.
In general, tracking foreign exchange rates is useful for anyone who has an interest or need in foreign exchange transactions or who wants to assess their financial situation and make informed financial decisions.
Benefits of Using Online Tracking Services
Online services for tracking changes in exchange rates provide a faster, more convenient, and more informative way to get up-to-date information on exchange rates, which can be important for making financial decisions. Using online services to track changes in currency exchange rates provides several advantages:
- Availability and convenience. The online services are available over the Internet, allowing you to receive currency exchange rate information anytime, anywhere. You can use your computer, smartphone, or tablet to quickly access up-to-date exchange rate data.
- Real-time updates. Online services provide information about real-time currency exchange rates. You can receive instant updates and follow changes in exchange rates throughout the day. This allows you to keep abreast of the latest developments and make up-to-date decisions.
- Wide choice of currencies. Online services usually cover a wide range of currency pairs and provide information on exchange rates between different currencies. This allows you to keep track of not only major currencies, but also rarer or exotic currencies if that’s important to you.
- Graphs and analytics. Many online services provide charts and analytics tools that allow you to analyze and visualize changes in exchange rates. You can view charts and trends, conduct technical analysis and draw conclusions about the direction of movement of exchange rates.
- Additional features and alerts. Some online services offer additional features such as customizable alerts for desired currency exchange rate levels. You can set alerts to be informed when a course reaches a certain level, which will help you take appropriate action.
- Comparison of rates from different providers. Using online services, you can compare the exchange rates of different providers or banks and choose the most favorable exchange conditions. This allows you to save money and get the best conditions when exchanging currency.
Final Thoughts
Tracking exchange rates allows you to choose the best moment for currency exchange. If you notice that the currency you want to exchange is reaching a profitable level, you can get more local currency for your money. This is especially important for tourists and people sending money to another country. Wherever you are, in Kyiv (Ukraine), Los Angeles (California), or Houston (Texas), you can always use the Rates online service, which shows the current exchange rates in Ukrainian financial institutions.
