Services of Currency Exchange Houses

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Services of Exchange Houses

Money Exchange and

Remittance Services Buying and Selling of Foreign Currencies Handling and issue of Travelers checks
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Types of Remittance Services

Online or Electronic fund Transfer
Demand Drafts (DD)

Instant or Express Money Transfer

Telegraphic Transfer (TT)

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Electronic Fund Transfer

Electronic funds transfer (EFT) is the electronic

exchange or transfer of money from one account to another, through computer-based systems.
National Electronic Fund Transfer (NEFT) system is a

system whereby funds are transferred electronically to the credit account of participating banks in India, using RBI's NEFT service.

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Demand Drafts
A method used by people to make transfer payments

from one bank account to another. Demand drafts are secure method for cashing checks. The major difference between demand drafts and normal checks is that demand drafts do not require a signature in order to be cashed. A demand draft, also known as a remotely created check,is with a buyer's checking account number on it, but without the buyer's original signature.

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Demand Drafts

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Express Money Transfer

This facility enables you to transfer money to your

loved ones, within minutes, through cash payout at various agent outlets and also through account payout in select countries. The popular services include: Xpress Money, the global instant money transfer brand, is a product of UAE Exchange, which offers reliable instant money transfer service, affordably. Western Union is an instant money transfer brand with the largest agent locations across the world Moneygram: Fast and easy way to transfer money to anywhere in the world.
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Telegraphic Transfer
Telegraphic Transfer or Telex Transfer , often

called TT, is an electronic means of transferring funds overseas. A transfer charge is collected while sending money. . A banking term commonly called "T/T," meaning a cable message from one bank to another in order to effect the transfer of money.[1

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Buying and Selling of Foreign Currencies

Exchange rate An exchange rate (also known as the foreignexchange rate, forex rate or FX rate) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one countrys currency in terms of another currency . The exchange rate describes how much one currency can buy of another currency. Eg. 1 Omani Rial /OMR=2.5980 US Dollar (USD)

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Buying rate and Selling rate

In the retail currency exchange market, a

different buying rate and selling rate will be quoted by money dealers. Most trades are to or from the local currency. The buying rate is the rate at which money dealers will buy foreign currency, and the selling rate is the rate at which they will sell the currency

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Currency pair
The first currency listed in the currency pair is called

the base currency; the second currency is referred to as the quote, or sometimes counter currency When published with an exchange rate, the currency pair indicates how much of the quote currency is required to purchase one unit of the base currency.
For example, EUR / USD = 1.5467 indicates that one

euro can buy 1.5467 US dollars.

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The bid and ask price for the Currency pair

Each currency pair listed by your broker is

accompanied by an exchange rate that shows the bid and ask price for the currency pair. The bid price is the rate that your broker is willing to buy for the currency pair; in other words, this is the rate you receive if selling to the market. The ask price is the rate at which your broker is willing to sell and represents the rate you must pay to buy the currency pair.
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Currency pair
The bid price is always less than the ask price because

brokers pay less than they receive for the same currency pair. This difference known as the spread is how your broker generates much of its revenue

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Travelers check
These are checks that you buy from banks or exchange

houses and take with you when you travel. You can exchange them for the currency of the country that you are in. The most widely accepted travellers cheques are: Thomas Cook Group American Express

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Travelers check
Travelers checks are available in several currencies

such as U.S. dollars, Canadian dollars, Pounds sterling, Japanese yen, Chinese Yuan and Euro; denominations usually being 20, 50, or 100 (x100 for Yen) of whatever currency, and are usually sold in pads of five or ten cheques, e.g., 5 x 20 for 100. Travelers checks do not expire, so unused checks can be kept by the purchaser to spend at any time in the future

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