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Many people look up the daily exchange rate before sending money to their family, but few understand why that number goes up and down. The difference between sending at the right time or the wrong time can mean tens of dollars less for those who need it most.
The dollar exchange rate determines how much money your family receives, not just how much you send. Understanding how it works is the most practical advantage you can have when sending a remittance.
Why the value of the dollar against other currencies changes every day
The U.S. dollar does not have a fixed value against Latin American currencies. Its price is continuously traded in international currency markets, 24 hours a day, Monday through Friday. This means the exchange rate you see at 8:00 AM may be different from the one at 3:00 PM.
Several factors drive these movements:
U.S. Federal Reserve decisions: When the Fed raises interest rates, the dollar tends to strengthen because investors seek higher returns on dollar-denominated assets. When it lowers them, the effect is usually the opposite, although each economic cycle can behave differently.
Economic conditions in the receiving country: If a country's economy grows steadily, its currency tends to gain value against the dollar. If there is high inflation, political crisis, or a drop in reserves, the local currency weakens and the dollar buys more.
Exports and dollar flow: Countries that export a lot (oil, manufacturing, agricultural products) receive dollars constantly. That inflow of foreign currency sustains or strengthens the local currency. When exports fall, pressure on the exchange rate increases.
Remittances as a stabilizing factor: In many Latin American countries, remittances represent a significant portion of national foreign currency income. This makes them a factor that, in times of economic stress, can help support the exchange rate.
The exchange rate is not controlled by any bank or money transfer service: it is the result of thousands of simultaneous transactions in global markets. What transfer services do control is the margin they apply to that market price, and that is where the differences between platforms become relevant.
How the dollar exchange rate affects the money your family receives
When you send, for example, $200 from the U.S., the amount your family member receives depends on two things: the fee charged by the transfer service and the exchange rate that service applies at that moment.
Most people pay attention to the fee, which is usually on the screen. But the exchange rate is just as important and sometimes harder to compare.
Consider this illustrative example (the values are fictitious, just to explain the mechanism):
| Concept | Scenario A | Scenario B |
|---|---|---|
| Amount sent | $200 USD | $200 USD |
| Service fee | $3 | $0 |
| Exchange rate applied | 18.00 per dollar | 17.40 per dollar |
| Amount received (in local currency) | 3,546 | 3,480 |
In this hypothetical example, Scenario A charges a fee but offers a better exchange rate, ultimately being more beneficial for the recipient. Scenario B appears free but adjusts the exchange rate to recover its margin.
The takeaway is clear: never compare services by looking only at the fee. Always compare the amount your family member will receive.
At Félix, the exchange rate applied at the time of the transfer is transparent and shown before you confirm the transaction, with no surprises at the end.
How to send money at the best exchange rate with Félix
There is no foolproof formula for always sending at the perfect moment because the currency market is unpredictable. What you can do is make better decisions with clear information.
Check the exchange rate before confirming. Before completing any transfer, compare the amount your family member will receive across different services. The exchange rate matters just as much as the fee.
Avoid sending during times of high volatility without context. Relevant economic news (central bank decisions, elections, crises) can move the exchange rate significantly within hours. If the context is uncertain, checking the market before sending can make a difference.
Use a service that shows you the final amount before confirming. Some services offer "free shipping" but apply an exchange rate that implicitly includes their profit. With Félix, you see the fee, the exchange rate, and how much arrives before confirming the transfer.
Consider the frequency of your transfers. If you send regularly, small differences in the exchange rate add up to a real impact over the year. Always choosing the service with the best conversion rate can mean a significant benefit for your family over 12 months.
You can start sending with Félix directly from WhatsApp, without needing to download any app, in minutes.
Frequently asked questions about the dollar value and remittances
Where can I see the official dollar exchange rate?
Each country has its own central bank that publishes a daily reference exchange rate: the Bank of Mexico (Banxico), Banguat in Guatemala, the Central Bank of Honduras, the Central Bank of Nicaragua, the Bank of the Republic of Colombia, among others. You can also check the real-time exchange rate on the Félix calculator before making your transfer. These official values are reference points: banks and transfer services apply their own margin on top of that market price.
Why is the exchange rate offered by a bank different from that of a service like Félix?
Banks apply wider margins on the market exchange rate and also tend to charge fees for international transfers. Remittance-specialized services usually charge lower fees than banks for these types of transactions. At Félix, you see the exchange rate and the fee before confirming your transfer.
Is it worth waiting for the dollar to "go up" before sending?
Trying to anticipate the movement of the exchange market is especially difficult, even for experts. If your family needs the money, sending promptly with a good service is usually more practical than waiting for an ideal exchange rate that may never arrive.
Sources and references
Bank of Mexico (Banxico)
- Exchange rates published by Banxico (Official reference FIX exchange rate published by the central bank of Mexico.)
U.S. Federal Reserve
- Federal Reserve: Monetary Policy (Interest rate decisions that influence the value of the dollar.)
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