Abdel's Australian transfer
Abdel was temporarily transferred from the company he works for in Iraq to their offices in Australia six months ago. He would like to continue adding funds to his savings account back home and has decided that he will send payments to his account whenever possible. To find the best prices available, he compares two money transfer companies.
|Money transfer service 1||Money transfer service 2|
|Exchange rate||AUD$1= IQD987.356||AUD$1 = IQD985.2|
|Transfer Time||Within minutes||Within minutes|
|Transfer fee||AUD$60 is charged to the sender for sending $1,000. There should be no charge to the recipient when picking up the money.||AUD$70 is charged to the sender for sending $1,000. There should be no charge to the recipient when picking up the money.|
|Amount received for AUD$1,000||Recipients will get IQD987,356.27.||Recipients will get IQD985,119.27.|
|Hidden charge||Approximately IQD41,544 is lost in the exchange.||Approximately IQD43,781 is lost in the exchange.|
With Abdel’s first option, not only will he save AUD$10 on his end, his family will receive IQD2,237 more depending on whether they are charged to convert funds to the dinar. The frequent changes in exchange rates would make it sensible for Abdel to check these rates every time he is preparing to make a transfer.