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Navigating Currency Fluctuations: Protecting Your Remittances from France to India

25 Mar 2024

According to a report by the Ministry of External Affairs, Government of India, about 109000 Indians are living in France. They have gone there primarily to earn a living, and they send money to India from France to offer financial aid to their families back home. 

Online money transfers are a convenient way to transfer funds from one place to another or across borders. These come with several challenges and threats against which you must protect your funds and transactions.         

One of the threats and challenges is the fluctuating currency exchange rates, which can throw your financials into disequilibrium if you need to learn about them.  

Let’s navigate currency fluctuations and learn the simple tips to keep your hard-earned money from their impact.   

Knowing Currency Fluctuations and the Steps to Staying Safe from Their Impact  

It has two main dimensions, already depicted: currency fluctuations and how to protect your transactions from the adverse impacts of currency fluctuations.  

So, protection stems from understanding currency fluctuations.

Let’s now see what currency fluctuation is and the factors causing it before understanding the tips to ensure protection against it.

Understanding Currency Fluctuations in Detail

A currency exchange rate is the rate at which one currency is exchanged for another currency. This rate affects the trade and exchange of currencies between two currencies. The factors that affect exchange rates are addressed in the next section. 

Generally, it is not the currencies that fluctuate. Rather, it is the rate at which currencies are exchanged that fluctuates. These changes occur when the value of a currency moves upwards or downwards due to the factors explained below.

When you work in France, you earn in the local currency, but then you have to send money online to India from France, which must be converted to the local Indian currency before it can be used.   

Or can the recipient in India use French currency in the local market for normal purposes?

Well, does the answer merit mentioning?

Let’s now walk briefly through the factors causing currencies to fluctuate.

What are the Factors that Cause Currencies to Fluctuate?

Remember that currencies fluctuate due to the upward or downward shifts in a country’s macro economy. Individual factors also play an important role, such as the quantum of inward remittances to a country, but the following factors primarily influence rates.  

Economic Performance

A country’s economic performance is the key factor that impacts the value of a currency either way. A country with a strong economy will have an increased demand for its currency, driving its value up.  

Interest Rates and Inflation

If a country's inflation rate is low, it would mean that the currency’s value is high. Countries with higher inflation rates have a devalued currency. Similarly, high-interest rates also mean that the currency’s value is strong.

Political Stability of a Country

A politically stable country has a strong economy. As mentioned earlier, a robust economy drives up the currency's value. In addition, politically strong economies also attract investments – local and foreign alike.  

Quantum of Foreign Remittances

If a country is receiving large amounts of foreign remittances like India in 2022 to the tune of $111.22 billion, it stabilizes the economy of the country and drives the value of the currency upwards. Because foreign currencies are converted into local currencies, their value is driven up.    

Before knowing the steps to protect your remittances from the impact of fluctuations, understand the role of currency exchange rates in international money transfers.

Steps to Protect Your Remittances to India from the Impact of Currency Fluctuations    

All the factors stated above impact the value of a currency and either drive it upwards or downwards. Considering these dimensions, you must be aware of how to protect yourself and your hard-earned money from the negative impacts that drive a currency’s value down.      

Plan a Budget  

The first step to staying protected from the adverse impacts of currency fluctuations is to take a realistic look at your income and expenses in the currency you earn in France. After its conversion into Indian currency, plan a budget according to it. It will help you avoid overestimating or underestimating your income and offer the necessary fiscal space for protection. 

Diversify Your Income

If you are earning in one currency, you are most vulnerable to the impacts of currency fluctuations. So, try to earn in different currencies in France. It will keep you away from the impacts.

Oh… Don’t worry!

Several service providers help you send multiple currencies back home in every money transfer from France to India.

Choose Your Online Money Transfer Service Provider Wisely

How you send money back home is a critical factor you must consider. Therefore, choose a service provider that offers live and market-competitive currency exchange rates and charges a low fee. It will minimize the negative impacts of currency fluctuations.

Because the drop in the value of the currency around the time of initiating a transaction will be compensated for by the low fee and live and competitive currency exchange rates you will get in the transaction – one or many. 

Review Your Insurance Policies

Once you get an insurance policy, you will keep it for a long time in the future. Right? But this can expose you to currency fluctuations. The better way is to keep reviewing your insurance policies and make amends as and when you feel the need.  

In other words, do not simply rely on one insurance policy for a long time after getting one.

Seek Professional Advice

One of the most important steps to protect your remittances from the adverse impacts of currency fluctuations is to seek professional advice. In foreign countries such as France, you will find several financial experts and institutions offering you expert financial advice in different financial areas, including mitigating the risks of currency fluctuations.

Hedge Your Exposure

Another way to stay protected from the impacts of currency fluctuations is hedging. Hedging is a financial strategy that involves the usage of financial contracts and instruments to reduce the negative impacts of a sudden fall in a currency’s value.  

Currency Fluctuations is a Tough Terrain; Step in it Carefully!

Every penny that you earn in France is precious for you and those you make online money transfers from France to India. Right?

That currencies perpetually fluctuate and make your money and transactions vulnerable to them, coupled with the fact that sending money back home is a recurring process. Therefore, while choosing your online money transfer service provider, exercise extreme caution and carefully search for one.   

The best option would be to find a service provider that charges a low fee and offers live and market-competitive currency exchange rates.  

You may wish to consider ACE Money Transfer in this regard, as the firm will offer you competitive currency exchange rates and will charge fees only if your amount reaches a certain threshold, below which you will enjoy as many fee-free transfers as possible!


What is currency fluctuation?

Currency fluctuation refers to the increase or decrease in the value of a currency due to different factors. It is important to know the details of currency fluctuations as migrants earn a living abroad in a different currency. So, being unaware of currency fluctuations can be financially troublesome.  

What factors cause currency fluctuations?

A few factors that cause the currencies to fluctuate are the economic performance of the country, political stability, rate of inflation and interest rates, market expectations, quantum of inward remittances, and balance of trade.   

How do currency fluctuations impact online money transfers?

Every currency keeps fluctuating in the international market, with its value going up one minute and down the next. Therefore, when you transfer funds when the value of a particular currency is low, it can throw your financials into disequilibrium against when its value is up at that time.

How do I protect my remittances from currency fluctuations?

You can protect your remittances from currency fluctuations by choosing your service provider wisely, planning a budget and diversifying your income. You can also seek professional advice, hedge against exposure, and review your insurance policies regularly. 

Can ACE Money Transfer help me with the impacts of currency fluctuations?  

Yes, ACE Money Transfer can help you with the impacts of currency fluctuations by offering live and market-competitive currency exchange rates that allow you to wait for the rates to spike before initiating a transfer or initiate a transfer immediately if you find the rates already high.


·      Indians in France

(Population of Overseas Indians (

·      Inward remittances to India

(Personal remittances, received (current US$) - India | Data (

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