Exchange rates suck.
We’ll be honest with you: when sending money abroad, they REALLY suck.
This matters because real families are on the other side of your transactions. Families who rely on your money to survive. Families who lose out when your exchange rate is inflated or poorly timed.
Here’s the deal…
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Nobody likes thinking about them, but exchange rates are the single biggest factor when sending money overseas. Most people don’t understand how they work, they choose a service, hit send and pray.
Guess what happens every time you do that?
You overpay.
If you know how exchange rates work, you understand how markets move, and you time your transfer correctly — your loved ones in the Philippines get more bang for their buck. If you ignore the exchange rate? They lose.
Here’s what we’ll cover…
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Why exchange rates matter MORE than the transfer fee
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What is the mid-market rate?
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What causes exchange rates to fluctuate?
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How to get the best rate when sending money overseas
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How to time your transfer SMARTER
Ready to dive in?
Why Exchange Rates Matter More Than You Realize
Every year, billions upon billions of dollars are sent from migrant workers in the United States to their families back home in the Philippines.
Remittances to the Philippines reached a record high USD 38.34 billion in 2024, making it the 5th largest remittance market globally, according to the country’s central bank. Nearly half of those remittances flow from the United States.
That’s a lot of cash crossing borders every year.
And for every single dollar, the exchange rate you get determines how much money your family member or friend actually receives.
When sending money overseas to the Philippines, your exchange rate is by far the most important factor that determines how much money your recipient actually gets. Not the transfer fee. Not how fast it arrives.
The rate.
Period.
That’s why choosing the right platform to send money to the Philippines matters so much — because if that platform charges a hidden markup on the USD to PHP rate, then your recipient gets less money.
Who cares about a few bucks?
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Well your recipient does.
What Is the Mid-Market Rate?
Did you know there are actually two exchange rates?
There’s the rate you see online… And the rate you actually receive.
The mid-market rate (AKA the interbank rate) is the real exchange rate. It’s what financial institutions use when exchanging currencies with each other. You’ll see this rate displayed on Google, XE.com, and Bloomberg.
But here’s the kicker: That is never the rate you’ll actually get as a consumer. Money services add a markup on top of this mid-price before passing it along to you. And most people never notice.
Let’s use an example. Say you see the mid-market rate is PHP 57.00 to $1 USD. But the platform you’re looking to send with only offers PHP 55.50.
That .50 difference on a $500 transaction means $8.47 less in the recipient’s pocket — BEFORE any transfer fees are added on top. THAT is money down the drain.
See how knowing the mid-market rate can make all the difference?
That’s why it should be step number one in comparing services before you send.
What Causes Exchange Rates to Fluctuate?
Exchange rates move. Often.
As recently as December 2024, the USD to PHP rate fluctuated over 2 pesos in just ONE MONTH. If you send money to the Philippines regularly, those changes add up — especially if you’re not paying attention.
Several factors influence exchange rates including:
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Inflation: Countries with lower inflation rates see their currencies appreciate against others.
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Interest rates: Rising interest rates attract foreign investment and increase currency value.
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Trade deficits/surpluses: Imports greater than exports decrease demand for a currency.
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Current events: Wars, elections, etc. can create uncertainty and cause investors to seek safe haven currencies like USD (triggering peso weakness).
None of these things are guaranteed or predictable. But by knowing WHY exchange rates move, you can prepare yourself to send at the RIGHT time.
How to Get the Best Rate When Sending Money Overseas
Picking the right service and getting a great exchange rate is SIMPLE. Here’s what you need to do:
Compare what you’re ACTUALLY getting.
I cannot stress this enough. Services will advertise 0% fees. But if their exchange rate provides you half of what you should be receiving — you’ll end up paying MORE money.
You want the recipient to get as much PHP to your dollar as possible. That’s the number you should compare across services.
Don’t bank on your bank.
Want terrible exchange rates? Send money through your bank.
It’s that easy.
Major banks are some of the worst when it comes to exchange rates. Specialist services always offer better rates — and tend to be faster too.
Set up rate alerts.
Most services allow you to set alerts that will notify you when USD to PHP hits your desired rate. If you’re looking to send a large amount, setting this up will pay for itself.
Watch out for invisible markups.
Some services advertise 0% fees but then markup the exchange rate so customers don’t realize they’re paying hidden costs. Always double-check how much PHP your recipient will get before hitting send.
Timing Your Transfer (The Smart Way)
Speaking of… when should you actually send?
Timing really is everything. There’s a trend among new guys to think you need to perfectly time the market when sending money abroad. News flash: nobody has perfect foresight.
That being said, you CAN transfer smarter by following a few simple rules:
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Transfers made during weekdays are more favourable. Currency exchanges happen during business hours, so transferring on weekends won’t get you the best rate.
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Avoid political and global events. Elections, global news, etc. can trigger wild swings in currency rates. You never know if that movement will be in your favour.
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Don’t try to time the market. Rates go up, they go down. Waiting around indefinitely for that “perfect” time is a gamble.
By now you should realize that timing your transfer doesn’t have to be about perfection. It’s about being informed enough to know when NOT to send.
Beyond the Numbers
Sending remittances may just be a transaction on your bank account. But for Filipinos living at home without access to high-paying jobs…
Remittances are EVERYTHING.
Remittances from the US account for 8.3% of Philippines GDP. That’s how significant they are to the financial livelihood of families across the country.
They help pay for food on the table. School fees. Medical bills. Everything.
That’s why it sucks when families lose out on a poor exchange rate.
Great news? You have the power to change that.
Armed with knowledge about how exchange rates work, you can minimize losses and keep more pesos in your family member or friends pocket.
Remember…
Exchange Rates are EVERYTHING
The exchange rate you get is the most important factor to consider when sending money overseas. Not how fast the money gets there. Not how much it costs to send.
Here’s a quick recap…
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Know the difference between the mid-market rate and the rate providers offer.
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Compare your total received (USD to PHP) amount, not fees.
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Know what causes exchange rates to fluctuate (inflation, rates, etc.)
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Set rate alerts and avoid sending through traditional bank transfers if possible.
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Send on weekdays during business hours for more favourable rates.
Follow these tips every time you send. More money will go to the families that need it most.
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