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Every Money Transfer And Remittance Term You Need To Know: Letter V

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V


Last updated: October 05, 2022


Variable Exchange Rate

A variable exchange rate is a type of exchange rate that is not fixed at the time of transaction initiation when sending money overseas. The actual exchange rate applied is the one from the time the transaction clears.

On the contrary, a fixed or locked-in exchange rate is a guaranteed rate that stays the same from the time the transaction is initiated to the time it completes.

Also known as: Floating Exchange Rate, Indicative Exchange Rate
Also see: Exchange Rate, Fixed Exchange Rate, Guaranteed Exchange Rate, Locked-in Exchange Rate
Further reading: Currency Exchange Rates: What Are They, How They Change, and More
What Is a Remittance and How Does It Work?
How To Make The Most Of Your Remittance