In numerous countries around the globe a fixed exchange charge regime is in force, which supports not only the stability of the nearby financial program but simplifies forex transfers as well. In general, a fixed exchange charge (also a pegged exchange charge or a currency peg) means that the local currency worth is pegged to the worth of another forex or a currency basket. Most frequently this is a so-known as hard forex like the U. S. dollar or the euro. Important from a currency transfer point of view is that no foreign trade charge will be relevant in the transfer and the recipient will obtain the same quantity of money, minus charges and commissions, but converted in his/her local forex. Numerous types of forex pegs are recognized however, it is irrelevant to the average client of cash transfer solutions. As talked about above, most pegged forex regimes entail the use of a hard forex as a base currency to which the local currency is pegged. In addition, there are some countries exactly where a foreign currency is adopted as official national forex. Experts contact this process dollarisation simply because such a process at first involved the U. S. dollar as a currency changing the nearby ones. The most nicely recognized cases of dollarisation are Panama, Ecuador and El Salvador exactly where the U. S. dollar is an official currency but you would be surprised how many nations have pegged their forex to the dollar. These currencies include the Bahamian dollar, the Cayman Islands dollar, the Lebanese lira, the United Arab Emirates dirham, the Chinese Renimbi (yuan), listing only the most prominent ones. Several countries, not only in Europe, have pegged their currency to the euro. Amongst them are Bosnia and Herzegovina, Bulgaria, Estonia, Lithuania, Latvia and Morocco. For a sender or a recipient sending cash that will be transformed into a pegged currency means that both parties will steer clear of conversion, assuming that the forex transfer is denominated in the same currency as the currency to which the home currency of the recipient is pegged to. If you are sending a particular quantity of euro from Germany to a bank account in Latvia, the recipient will obtain the exact same amount transformed to his/her house currency, the Latvian lat, with out any losses due to foreign exchange rates. Nevertheless, you can't steer clear of financial institution fees related to the transfer. On the other hand, you ought to bear in thoughts that a pegged currency fluctuates in conjunction with the currency it is fixed to. For instance, if you are sending British lbs to Estonia it is a good thought to wait for a moment when the pound is extremely powerful against the euro. This will permit the recipient in Estonia to benefit from the stronger pound and obtain more euro, much more cash in the nearby forex, respectively compare exchange rates. This is a two-way procedure so wait for the British pound to weaken against the euro if you are waiting around to receive a currency transfer, which is to be converted from euro into lbs compare exchange rates. However, you will have to temporise till the pound restores its positions against the euro to benefit from the overall transfer. Dr Timothy Ross is an expert on the monetary markets. Suggestion: If you require to make a big or normal abroad payment think about the assist of a currency transfer specialist as an alternative to your financial institution.