If you are sending money abroad then you automatically play with exchange rates. Being aware of how exchange rates are actually working can help you to save money and even win money. And you would see it, is not as complicated than it seems !!
What is an Exchange rate ?
Because it is impossible to evaluate the exact value of a currency in an absolute terms, exchange rates allow to estimate them between each others. In clear, exchange rate give you the value of a foreign currency in comparison with one of your currency. Exchange rate allow to to compare any currency to another.
Why are they changing ?
Exchange rate are regulated by a foreign exchange market. Each state decide how their currency will act compare to foreign one. They have basically two options: or be fixed meaning the rate is always the same or « free-floating » meaning that the rate change depending on the market and others criteria.
Why you are losing money ?
Because exchange rate are fluctuant and can change really quickly, they impact directly international money transfers. Knowing the right moment to make a money transfer can get you save a lot of money and even win extra money. Imagine you are working in a foreign country and you change all your salary to your local currency. If you transfer your money the day where your local currency is stronger the currency which in gets pay, you can increase the amount of money you just receive.
The best way to not lose money is to know the exchange rates and wait the right time to do your international money transfer.