Economic crises, wars and pandemics don't just impact governments and financial markets. They also directly affect the exchange rate and the real value of your international money transfers.
When the world is going through periods of instability, small variations in the exchange rate can represent significant differences in the amount your family member or recipient receives.
In this guide, we analyze what happens in these scenarios and how to send money more strategically.
Index of contents
- Why do crises affect the exchange rate?
- What happens to money transfers in an economic crisis
- How international wars and conflicts influence
- Pandemics and financial volatility
- How to protect your money transfers in unstable environments
- The role of digital platforms in times of crisis
- Conclusion
Why do crises affect the exchange rate?
The exchange rate is directly linked to economic stability and confidence in markets.
When a crisis occurs:
- Investors are looking for currencies considered to be safer.
- Governments can enforce financial controls.
- Uncertainty is increasing in international markets.
- There are sudden movements in currencies.
These changes can happen in a matter of hours and affect the final value of a money transfer.
What happens to money transfers in an economic crisis
During an economic crisis, there are usually three main effects.
1. Higher volatility
The exchange rate may vary several times a day. This directly impacts the final amount the recipient receives.
2. Increase in commissions
Some financial institutions adjust their costs in the face of increased operational risk.
3. Regulatory restrictions
In certain countries, temporary limits or controls may be established on capital movements.
Organizations such as the World Bank analyze these scenarios and their impact on global economies:
How international wars and conflicts influence
Geopolitical conflicts generate immediate instability.
Among the most common effects are:
- Economic sanctions
- Bank blockages
- Interruptions in international payment networks
- Falls in financial markets
This can result in delays or higher costs in international money transfers.
The International Monetary Fund publishes studies on these impacts:
Pandemics and financial volatility
Health emergencies also alter the global financial system.
During these periods, the following may occur:
- Closure of physical offices
- Increase in the use of digital platforms
- Massive economic stimulus
- Temporary changes in financial regulations
This demonstrated the importance of having digital solutions that allow you to send money without relying on physical branches.
How to protect your money transfers in unstable environments
If you send money regularly, these strategies can help:
- Check the exchange rate before confirming the transaction.
- Avoid shipping at times of important economic announcements.
- Use platforms that display commissions and rates with complete transparency.
- Stay informed about the economic situation of the destination country.
- Save receipts and track each shipment.
Information and planning reduce the impact of volatility.
The role of digital platforms in times of crisis
In scenarios of global instability, digital money-sending platforms play a key role.
Unlike traditional models, digital solutions allow:
- Check the exchange rate in real time.
- View the total cost before confirming.
- Ship without physical travel.
- Immediately track the status of the transfer.
This is where tools like Return are becoming relevant.
Retorna is a money transfer app that allows you to make international transfers with clarity on the exchange rate and commissions before confirming the transaction.
In volatile contexts, having visible and transparent information can make a difference in the final amount received.
If you want to know more about how the platform works, you can visit its official site:
Conclusion
International crises directly affect the exchange rate and, consequently, the real value of your international money transfers.
While we can't control global events, we can make informed decisions about when and how to send money.
Using transparent digital platforms, monitoring the market and planning shipments can help you minimize the impact of volatility.
In times of uncertainty, information and technology become your best allies.
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