USD INR ₹ 83.50
GBP INR ₹ 105.93
CAD INR ₹ 61.04
News

US Markets Crashing Amidst Coronavirus Fear and Oil Price War

Updated on March 11, 2020 12:00 am
US economy hit by coronavirus

Within moments of the United States stock market opening on March 9, 2020, the stock market crashed so rapidly that trading was paused to prevent stocks from dipping further. Cited as the worst day in the global stock market, the immediate triggers can be attributed to two anchors:

First, the actual impact and the fear of coronavirus outbreak has crippled the economy.

Second, Saudi Arabia's decision to launch an oil price war against its one time ally, Russia.
 

Impact of Coronavirus on the US Economy 

With several industries being affected by the Coronavirus spread, the global economy is taking a big hit.

  • The economic fallout caused by COVID-19 could trigger recessions in the U.S., euro-area and Japan.
  • Automobile sales have already plunged to 80%
  • Air travel is down by 85% from normal levels
  • Several Fortune 500 companies within the US have temporarily shut businesses in-house and have their employees working from home.
  • Uncertainty of the future containment of the Coronavirus is negatively impacting business, both at the local and national levels.
  • Lower valuations and increased volatility in the financial markets will have long standing repercussions which a correction will not fix immediately.
  • Supply-side shock: COVID-19 has brought factories to a complete halt, impacting supply chain and delaying delivery. Global brands including Apple are taking a major hit.
  • Supply chain disruptions are delaying product completions for many US firms.
  • With China as the epicenter of the Coronavirus, productions are delayed for all products coming out of China.
  • Bloomberg predicts a total loss of $2.7 trillion in the global economy - equivalent to the entire GDP of the U.K in lost output.

Impact of the Oil Price War

Global oil prices took a major hit and succumbed to a historic collapse on Monday after Saudi Arabia shocked the market by launching a price war against Russia. The price of crude oil was down more than 24% to hit an all time low since 1991. It has threatened the viability of small oil companies and the corporate bond market aided by the significant collapse in oil demand due to the coronavirus.

How Does the Financial Market Crisis Impact Remittances?  

Remittances are an important source of external finance for many developing countries. Learning from the 2008-09 global financial crisis, Remittances tend to be stable and even rise in times of crisis because families living and working abroad send more money to assist their loved ones back home. For example, in  the case of Mexico in 1995, to the Philippines and Thailand after the Asian crash in 1997. According to a report by the RBI, Global financial crisis has so far failed to significantly slow down inflow of remittances in India, citing that the uncertainties in oil prices might have "induced the workers to remit their money to India as a hedging mechanism due to its relatively better growth prospects".

In a study titled, The Impact of the Global Financial Crisis on Migration and Remittances by Sanket Mohapatra and Dilip Ratha, there are several reasons for the resilience of remittances in the face of economic downturns.

  • Remittances are sent by the cumulated flows of migrants over the years and it is not limited to the new influx of migrants or the lack thereof in the past year
  • Remittances are a small part of migrants' incomes
  • If migrants do return to their home countries, they are likely to take accumulated savings with them.
  • Migrants may send higher remittances for investment purposes to diversify the risk of an economic downturn.

Is it a good time to send money? 

The primary factors to consider before sending money online are - exchange rates, transfer fees, and transfer speed.

Exchange rate: With a bear market, the exchange rates are at the highest. For example, 1 USD is nearing 74 INR. Which means the remitter in the US gets more INR for USD.Subscribe to our exchange rate alerts for real time updates.

Transfer fees: The transfer fees vary depending on the money transfer service providers, types of payment and receiving method.
Transfer Speed: Transfer speed also varies depending on the type of service, amount of money, and the money transfer companies.Compare them before sending money online.

Stay tuned to CompareRemit's news section as we continue to monitor the markets and analyze its effects on global remittances specifically and the economy as a whole.

 6489 views
Rate article:
(5.0)
 
 
Money Transfer FAQ's
Related News
Father son reunion
How To Find A Travel Insurance Policy That Covers Covid-19?

Going into 2024, we learned many lessons from COVID. While borders have reopened and life has gone back to practically how it was before, the desire to reconnect with loved ones and explore new destinations grows stronger. However, amidst the excitement of travel, it's crucial not to overlook the importance of securing adequate travel insurance, especially in the context of COVID-19. In this comprehensive guide, we'll explore the significance of travel insurance, highlight key considerations for finding policies that cover COVID-19, and provide actionable tips for selecting the right coverage to suit your needs.   The Importance of Travel Insurance in the Post-COVID-19 EraDespite the easing of travel restrictions and the gradual return to normalcy, the lessons learned during the COVID-19 pandemic have highlighted the necessity of travel insurance. While the threat of the virus may be diminishing, unexpected medical emergencies, trip cancellations, and disruptions remain a strong possibility. Travel insurance serves as a safety net, offering financial protection and peace of mind for travelers facing unforeseen circumstances, including those related to COVID-19.Understanding COVID-19 Coverage OptionsIn response to the pandemic, many travel insurance providers have adapted their policies to include coverage for COVID-19-related risks.There are two types of travel insurance you can opt for when looking for travel insurance, both covering different situations: travel medical insurance and trip insurance.  Travel Insurance: Provides comprehensive coverage for a range of travel-related emergencies, including medical expenses such as for hospitalization or medication for new injuries or illnesses that occur during one’s travels. It also typically includes benefits such as emergency medical evacuation and lost luggage reimbursement.In response to the pandemic, many travel insurance providers have modified their policies to address COVID-19-related risks. That is why some travel medical policies now include coverage of medical treatment expenses incurred due to COVID-19 during travel (if COVID was contracted during travel). Trip Insurance: Focuses specifically on protecting the financial investment made in a single trip. It typically covers expenses such as trip cancellations, interruptions, or delays, offering reimbursement for non-refundable expenses in case of unforeseen events.Similar to travel medical insurance policies, in response to the pandemic, many trip insurance providers have modified their policies to address COVID-19-related risks.  That is why some trip insurance policies now include coverage for cancellations or interruptions due to contracting COVID-19 prior to travel.Additionally, some policies offer "Cancel For Any Reason" (CFAR) coverage, providing flexibility for travelers to cancel their trip for any reason, albeit with eligibility requirements and time-sensitive limitations.There is no one-size-fits-all when it comes to Travel Insurance: some people travel regularly for work, some work for months and years to save up for a single trip, and some may have to travel urgently for a family emergency.Traditionally most travel insurance policies and plans cover expenses on account of medical emergencies, trip cancellation, interruption or delays, medical evacuation, and lost, damaged, or stolen luggage. However, given the current times, you must look for specific policies covering COVID19.Finding the Best Travel Insurance for COVID-19When selecting a travel insurance policy that covers COVID-19, here are some key features to look for in your travel insurance plan:Comprehensive Coverage: Look for policies that offer comprehensive coverage for COVID-19-related expenses, including medical treatment, quarantine accommodation, and trip interruption or cancellation due to the virus.COVID-19 Testing Coverage: Verify whether the policy includes coverage for COVID-19 testing required for travel purposes. Some insurers may cover the cost of testing as part of their COVID-19-related benefits.Quarantine Expenses: Ensure that the policy provides coverage for quarantine-related expenses, such as accommodation and meals, in the event that you're required to quarantine while traveling due to COVID-19 exposure.Trip Cancellation/Interruption: Opt for policies that offer robust coverage for trip cancellation or interruption caused by COVID-19-related issues, such as illness or travel advisories.Emergency Medical Coverage: Verify that the policy provides adequate coverage for emergency medical expenses related to COVID-19, including hospitalization, doctor visits, and medication.Pre-Existing Conditions: If you have pre-existing medical conditions, most comprehensive coverage plans will not include pre-existing medical conditions, but there are still some that do. Read up on whether or not the policy covers COVID-19 treatment for these conditions, as some insurers may have specific exclusions.Finding the Right Travel Insurance PolicyNavigating the plethora of travel insurance options can be overwhelming, but utilizing online travel insurance marketplaces simplifies the process. Platforms like VisitorsCoverage empower travelers to compare different policies, generate quotes, and access award-winning customer service representatives for assistance. By leveraging these resources, travelers can confidently select a policy tailored to their needs and providing comprehensive coverage for COVID-19-related risks.As travel has resumed in full swing, it is easy to feel like you don’t need to worry about COVID-19 anymore, but it is always good to prioritize your safety and financial protection. COVID-19 may have reshaped the travel landscape, but with the right travel insurance policy, travelers can navigate uncertainties with confidence. Whether embarking on a leisurely vacation, business trip, or family visit, investing in travel insurance offers peace of mind and ensures preparedness for any travel-related emergencies, pandemic or otherwise. Safe travels!

online money transfer mobile application
Taptap Send and CompareRemit Form Strategic Partnership

New York, 27/05/2023 – Taptap Send, the innovative mobile money transfer application, is proud to announce its partnership with leading remittance solution provider CompareRemit.com. With a focus on empowering immigrants, Taptap Send simplifies the process of sending money back home to India, Pakistan, Philippines, Bangladesh, Sri Lanka, and Nepal.Sending money across borders has long been a complex and expensive endeavor for immigrants supporting their families and loved ones. Taptap Send was developed to address these challenges, providing a user-friendly mobile application that streamlines and optimizes the money transfer process, all through the convenience of a smartphone.Taptap Send offers a range of features designed to enhance the experience for immigrants sending funds back home:Competitive Rates and No Transfer Fees: Taptap Send leverages technology to streamline operations, resulting in more affordable transfers compared to traditional methods.Mobile Accessibility: The Taptap Send mobile application ensures users can initiate money transfers anytime, anywhere.Transparent Pricing: Users are provided with upfront information on exchange rates, allowing them to make informed decisions and have a clear understanding of the total cost of the transfer.Taptap Send aims to break down the barriers faced by immigrants when sending money back home, enabling them to provide vital support to their families and communities with ease and efficiency.Through its partnership with CompareRemit.com, Taptap Send further expands its reach and impact, offering immigrants a comprehensive range of remittance solutions tailored to their specific needs and requirements.To learn more about Taptap Send and explore the various money transfer options available for sending funds to India, Pakistan, Philippines, Bangladesh, Sri Lanka, and Nepal, please visit the Taptap Send website.About Taptap Send:Taptap Send is a mobile money transfer service that simplifies and enhances the process of sending funds internationally. Designed with immigrants in mind, Taptap Send offers a user-friendly mobile application that empowers users to initiate money transfers conveniently and affordably, providing vital support to their families and loved ones across borders.Media Contact:Name: Anthony JacobTitle: Head of Growth, South AsiaEmail: [email protected]

mexican dad with children sending money online using computer
CompareRemit Launches NEW Spanish Language Site

CompareRemit is thrilled to announce the launch of our NEW Spanish language website! Spanish speakers can now effortlessly navigate through the CompareRemit website to compare exchange rates, fees, and transfer time when looking to send money overseas using one of our trusted partners. Fully understand the offerings of online remittance companies and compare their services with ease while browsing our Spanish-translated site. In addition to making comparisons easier to navigate in Spanish, we have also launched a Spanish blog dedicated to money transfer guides and topics that will help Spanish speakers better understand how to send money online, how to use money transfer apps, reviews of the best remittance companies, and so much more. Plus, we don’t use Google translate for our Spanish-language supported website; our site is translated by native Spanish speakers to ensure that you are receiving accurate and helpful information. How to Navigate the New CompareRemit Spanish Language SiteStarting on the homepage, check out the current exchange rates for top remittance countries, including USD to MXN. These are the best available market exchange rates offered for the moment. You can also manually enter in how much money you are looking to send and to which country, which will redirect you to a new page detailing the company choices you have. You can compare exchange rates, transfer fees, transfer time, and coupons available from our trusted partners. If you are looking for more information on the best ways to send money overseas or tips and tricks when it comes to exchanging or transferring money, be sure to navigate to our blog section. Here, you’ll find detailed articles related to remittance to help make your money transfers easy and seamless. Find detailed money transfer guides, the latest news, and more! To see what offers our current partners have, check out our coupons page. Here, you’ll find the latest deals that our trusted remittance partners are offering. Typically, you’ll be able to get a special exchange rate for your first transfer, or money off your first transaction. Don’t miss these deals, because they don’t last long and help you save even more money when sending cash overseas. Lastly, if you have any questions or concerns while scrolling our site, head to our contact us page where you can send us a message. We will get back to you as soon as possible! We hope that our new Spanish website helps Spanish-speaking visitors to easily navigate the CompareRemit website. Use our website before sending any money overseas to get the best exchange rate, lowest transfer fee, and fastest turnaround time. Compare USD to MXN today!

Download the CompareRemit App
Download the CompareRemit App
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.

Get Listed or Advertise

Download Our Free App

Try our faster, enhanced mobile app for a better experience

CompareRemit App