Moving your US dollars to Europe
More than a few of you have noticed that your US dollars are not worth as much here in Europe as they used to be. And you have been asking for advice on how best to manage that loss in value when you move money over. To provide some answers, I reached out to my friend Ben Small at Ibanista. Ben and his team have been involved in international money transfers for years, and I asked them to provide a few posts for you to better understand the players and the rules of the currency exchange market and some tips for how you can make that market work better for you.
In this first post, we look at the basics. We include contact information for Ibanista at the bottom if you want to reach out to them with your own requests.
What Is Currency Exchange? (Explained in Plain English)
When people move abroad, buy property overseas, or send money between countries, they inevitably encounter the term currency exchange. It sounds technical, but the idea is actually very simple.
Currency exchange is simply the process of converting money from one country’s currency into another. For example, if you move money from the United States to France, you need to convert US dollars (USD) into euros (EUR). That conversion is currency exchange.
At first glance it seems straightforward, you give dollars and receive euros. But the important detail is the exchange rate, because that determines how much money you actually end up with. Understanding this concept is especially important if you are moving abroad or transferring large sums internationally, because exchange rates can significantly affect the final value of your money.
The Simplest Way to Understand Currency Exchange
Imagine you are traveling from the United States to France.
You arrive at the airport with $1,000 in cash and want to convert it into euros.
A currency exchange service might offer an exchange rate like this:1 USD = 0.92 EUR
That means every dollar you convert becomes 0.92 €.
If you exchange your $1,000, you would receive roughly 920 €
That’s currency exchange in its simplest form. You’re just swapping one currency for another at the current market rate.
Why Exchange Rates Change All the Time
One thing that surprises many people is that exchange rates are not fixed. They change constantly throughout the day. This happens because currencies are traded globally, much like stocks or commodities. The value of a currency rises or falls depending on supply, demand, and economic conditions.
Several factors influence exchange rates, including:
Interest rates set by central banks
Economic growth and inflation
Political stability
Global investment flows
Market expectations about the future
Because these forces are always shifting, the value of one currency relative to another is constantly moving.
For example, the exchange rate between the US dollar and the euro might be 0.92 today, 0.95 next month, and 0.90 later in the year. For everyday transactions this may not matter much. But when large sums are involved, these changes can have a real financial impact.
Why Currency Exchange Matters When Moving Abroad
If you are relocating internationally, currency exchange becomes part of everyday life.
You may need to convert money for things like:
Paying rent in another country
Sending living expenses abroad
Buying property overseas
Moving retirement savings internationally
Transferring proceeds from a house sale
Each time you convert money from one currency to another, the exchange rate determines how much you receive.
For example, if you are transferring $300,000 to euros to buy a property in France, a small change in the exchange rate can make a noticeable difference. A movement of just 2% in the exchange rate could change the value of that transfer by $6,000.
That’s why understanding currency exchange becomes particularly important during large international transactions.
Where Currency Exchange Happens
Currency exchange can take place through several different channels.
Most people encounter it in one of these ways.
Banks
Traditional banks have always offered international currency conversion. However, bank exchange rates often include wider margins, meaning the rate offered may be less favourable than the market rate.
Online Transfer Platforms
Modern platforms such as Wise allow people to send money internationally with transparent pricing and competitive exchange rates.
These services are commonly used for everyday transfers like living expenses or smaller payments abroad.
Currency Brokers
Currency brokers specialise in helping individuals and businesses transfer larger amounts of money internationally, often linked to property purchases or major financial moves.
Rather than focusing purely on speed, brokers often help structure transfers in a way that considers exchange rate timing and risk.
Each of these options serves a slightly different purpose depending on the size and urgency of the transfer.
Why the Exchange Rate You Receive Matters
When converting money internationally, there are two main components that determine how much you receive:
The exchange rate
Transfer fees
Most people focus on the fee, but the exchange rate often matters far more. Even a small difference between exchange rates can change the value of your transfer significantly.
For example:
If $100,000 is converted at 0.90, you receive 90,000 €
If the rate is 0.94, you receive 94,000 €
That’s a difference of 4,000 € purely from the exchange rate. This is why people moving large amounts of money internationally often pay close attention to when and how their currency is converted.
A Simple Example: Moving Money from the US to France
Imagine you are relocating to France and need to transfer funds from the US to cover the purchase of a home.
The property price is 500,000 €.
If the exchange rate is 1 USD = 0.90 EUR
You would need approximately $555,000 to complete the purchase.
However, if the exchange rate changes to 1 USD = 0.95 EUR
You would only need about $526,000.
The property price hasn’t changed. The only difference is the exchange rate. This is why currency exchange becomes an important consideration when moving money internationally.
When It Helps to Speak to a Currency Specialist
For everyday transfers, most people simply use platforms like Wise or their bank. But when larger sums are involved, for example moving savings, transferring investment funds, or purchasing property abroad, it can be helpful to understand your options before converting the money.
If you’re planning an international move or a large transfer, you can book a free FX strategy call with Ben Small, founder of Ibanista, to talk through your situation.
👉 Book a free FX consultation call with Ben https://meetings-eu1.hubspot.com/benjamin-small/fx-strategy-call
The call is simply an opportunity to discuss your timeline, the size of your transfer, and the different ways currency markets might affect your plans. There is no obligation, the goal is simply to help people move money internationally with more clarity.
How Ibanista Helps with International Currency Transfers
If you are moving money internationally, whether to France or anywhere else, Ibanista helps clients structure their transfers more intelligently.
This can include:
Large international transfers linked to property purchases
Moving retirement funds abroad
Transferring investment capital between countries
Managing currency risk when relocating internationally
You can learn more about how we help clients move money internationally here:
👉 Learn more about Ibanista’s services here https://www.ibanista.com/
Even though many of our clients are moving to France, the same currency planning principles apply to any international transfer.
The Bottom Line
Currency exchange may sound complicated, but the basic concept is very simple. It is the process of converting one currency into another using the current exchange rate.
When transferring money internationally, the exchange rate determines how much of the new currency you receive. Because those rates change constantly, the timing and structure of large transfers can sometimes make a noticeable financial difference.
For everyday payments abroad, currency exchange is usually just part of routine life. But for major financial events, like buying property overseas or relocating internationally, it becomes something worth understanding a little more closely.
And once you understand how currency exchange works, managing international money movements becomes far less intimidating.