Media type · Rate moves and fees
Currency buffer
The extra cash held for exchange-rate moves and transfer costs.
Key facts
| Covers | Rate moves and fees |
|---|---|
| Sized as | A percentage of the amount |
| Held in | A currency you can spend |
| Reduces | Timing risk |
| Not | A prediction of the rate |
Price the landed amount
The cost of moving money is the difference between what leaves your account and what arrives. Fees, spreads and correspondent charges all reduce the landed amount. Compare that number rather than the headline fee.
Frequently asked questions
Should the buffer be in the destination currency?
For fixed near-term costs, holding or converting early removes the exposure. For flexible spending, a mixed approach is fine.
Does a buffer replace insurance?
No. It absorbs small rate moves; it does not cover loss, fraud or a failed transfer.