In numerous countries around the world a hard and fast exchange rate regime is force, which supports not simply the stability of the local economic system but simplifies currency transfers as well. In general, a fixed exchange rate (also a pegged exchange rate or a currency peg) means that the neighborhood currency value is pegged towards the value of another currency or even a currency basket. Frequently this is a so-called "hard currency" like the U.S. dollar or euro. Important from the currency transfer standpoint is that no forex trading rate will be applicable in the transfer and the recipient gets the same amount of money, minus fees and commissions, but converted in his/her local currency.
Various currency pegs are known; however, it's irrelevant to the average client of income transfer services. As pointed out, most pegged currency regimes involve the use of a hard currency as being a "base" currency to which the neighborhood currency is pegged. In addition, there are some countries where a foreign currency is adopted as official national currency. Experts refer to this as process dollarisation because this type of process initially involved the U.S. dollar as a currency replacing a nearby ones.
The most popular cases of dollarisation are Panama, Ecuador and El Salvador the location where the U.S. dollar can be an official currency but you would be surprised the amount of countries have pegged their currency for the dollar. Those currencies include the Bahamian dollar, the Caymans dollar, the Lebanese lira, the Uae Dirham, the Chinese Renimbi (yuan), listing exactly the most prominent ones. Several countries, with Europe, have pegged their currency for the euro. Among them are Bosnia and Herzegovina, Bulgaria, Estonia, Lithuania, Latvia and Morocco.
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For a sender or a recipient sending money that will be converted into a pegged currency implies that both parties will avoid conversion, if the currency transfer is denominated from the same currency since the currency to which the house currency of the recipient is pegged to. If you are sending a certain amount of euro from Germany into a bank account in Latvia, the recipient will get the same amount converted to his/her home currency, the Latvian lat, without losses due to foreign exchange rates. However, you can not avoid bank fees in connection with the transfer.
Alternatively, you should bear in mind that a pegged currency fluctuates with the currency it is fixed to. By way of example, if you are sending British pounds to Estonia this is a good idea to wait if you'll when the pound is incredibly strong against the euro. This will allow the recipient in Estonia to benefit from the stronger pound and receive more euro, more money in the local currency, respectively. This is the two-way process so wait for the British pound to weaken from the euro if you are waiting to get a currency transfer, which is converted from euro into pounds. However, you'll need to temporise until the pound restores its positions contrary to the euro to benefit in the overall transfer.