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.
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.
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.
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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!
The Indian Rupee has closed at a 20-week low against the US dollar. Paired with the unexpected outcome of the US presidential election this past week, the main reasons for dragging the rupee down can be accredited to the strike on black money via demonetization of high-value currency notes and weak industrial output. The US currency, in turn, has strengthened based on speculations that the policies of the US President-elect Donald Trump would be inflationary and lead to a rise in the interest rates, thus impacting foreign money flow to emerging countries like India.Foreign investors withdrew over Rs. 2,350 crore from the stock markets as the US-backed assets are looking more attractive and as a result, the economy is expected to improve in the coming quarters.According to India ratings, the sudden decline in money supply and a simultaneous increase in bank deposits - due to withdrawal of 500 and 1000 rupee notes - will adversely impact consumption demand in the economy. This, coupled with the depreciation of real estate, construction and informal sectors, will further weaken the rupee in the upcoming months. It is very much possible in the upcoming months, as well as even forecasted by many agencies, that US Dollars will become stronger against Indian Rupees. All this means is that the spending power of the NRIs will increase, leading to a rise in the remittance flow to India.Compare. Save. Send Money Home Wisely.TODAY'S BEST RATE USD to INRAdditional ReadingHow will India's Currency Ban Affect NRIs in the USA?How India's currency ban of Rs. 500 & Rs.1000 will affect NRIs?How much Indian Rupees can one carry to India?