19 May 2023
According to a communique issued by the Senate of Pakistan in November 2021, around 150,000 Pakistani migrants are residing in Italy for jobs to earn a higher income to support their families financially. These migrants, the same communique revealed, send money to Pakistan from Italy as remittances, amounting to about $600 million.
Do you know what is the most challenging part of their money transfers back home?
Well, it is to find the best currency exchange rates as they are the most tricky thing in any online money transfer, regardless of your chosen service provider.
It gains more importance if you belong to a developing country like Pakistan because a fair understanding of currency exchange rates, or lack thereof, can either add to the money you send back or slash it substantially.
Let’s delve deeper into the discussion to understand the exchange rates and learn how you get the best deal.
Pakistan is one of the developing countries with a nominal Gross Domestic Product (GDP) of $348.26 billion in 2021, according to a World Bank report. It had a nominal GDP per capita income of $1,505 in the same year, the same report states.
These statistics mean that the economic condition of the country is not in an inspiring shape. It further means that the country's people suffer economically due to unemployment leading to deepening poverty levels.
In such a scenario, it becomes difficult for people to put food on the table, let alone fulfilling other needs of life.
They, therefore, travel to developed countries like Italy to find better work opportunities to support their families.
Since they come from humble backgrounds, they try to ensure every penny earned abroad is not wasted. For this purpose, understanding the currency exchange rates becomes critically important.
You earn a living in a foreign land, in its local currency, not in yours. For example, you earn money in Italy in its currency, or at best, in an international currency. In either case, your family, to whom you send money to Pakistan online, cannot spend it unless converted into the local currency.
This conversion is based on the exchange rates.
A currency exchange rate is a rate at which you can purchase one unit of another currency.
For example, the rupees you will need to purchase, one USD or one GBP, will be the exchange rate between the currencies.
You will require more local currency units if your currency’s value is low.
These exchange rates are divided into two categories. One is static, and the other is flexible.
Several service providers, especially banks, use this type of rate. These are kept fixed for one business day at least. The challenge for you, in these rates, is that you get low rates if the rates being offered are lower than in the international market, where these fluctuate.
Some of the service providers offer these rates. They are called flexible because they are linked with the ever-fluctuating international market. These rates allow you to initiate a transaction when you think the rates are most in your favour.
Before understanding how to get the best exchange rates, let’s take a quick look at Italy’s economy and a few reasons for going there.
Here is why Pakistani migrants prefer to work in Italy.
Italy has no minimum wage rate. Your wages largely depend on which sector you work in. But, wages in Italy, coupled with other incentives, are relatively higher than in other countries. For example, you could get around 875 euros per month if you work in the agriculture industry.
Italy has one of the strongest social security systems in the world. Once you get the right to live in the country, you become entitled to employment, family, disability, old age, healthcare, unemployment, and many more benefits. You contribute to the national social security through your social security number. Your contributions will be returned to you in the form of other amenities.
Skilled workers are in high demand in Italy. For example, in the healthcare sector, you can find jobs as a nurse, doctor, physiotherapist, etc. But in Italy, it is essential to complete a special course of qualifications from Italy to understand the job requirements.
Furthermore, there is immense work potential in Italy’s travel and tourism sector as it offers hundreds of jobs in different categories.
The work-life balance in the country is one of the best worldwide. You get paid holidays and flexible work hours with many opportunities to choose from.
Let’s now understand how you can get the best currency exchange rates.
These are some of the advantages of working in Italy.
Following the steps explained below will help you get the best currency exchange rates.
Learn more about currency exchange rates here: Calculating Currency Exchange Rates.
Your online money transfer to Pakistan with ACE Money Transfer can not only get you live exchange rates, but it also gives you just 7 seconds to deliver funds in Pakistan from anywhere, with safety and worldwide service availability from one stop.