Moving large sums of money overseas into a local currency

[Deactivated] on 30/01/2015 - 22:34

I'm considering investing in a foreign business and would have to move several hundred thousand dollars overseas and convert it to the local currency to do so. Indonesian Rupiah/IDR, if it helps.

What are the ways to get the best overall deal in terms of exchange rate and fees?

OzForex seems to be asking for a ~4.5% cut from the Interbank rate, which seems like a lot. Commonwealth Bank's online calculator has it taking a ~11% cut from the Interbank rate which is much worse.

I accept that it may just be the cost of doing business overseas but I'd like to get the best deal possible.

Financial

Comments

  • trex on 30/01/2015 - 22:46

    You could establish Foreign Currency Account (FCA) with local banks here and remit the Foreign currency overseas as and when required instead of moving a lump sum now?

    This will eliminate any exchange rate differences since you would be remitting IDR from AU to IDR overseas. Fees should be lower as well.

    I am not sure whether IDR is available in a FCA though.

    • [Deactivated] on 31/01/2015 - 14:21

      Most banks don't seem to do IDR for an FCA.

  • tinx on 30/01/2015 - 22:59

    i just moved money from indonesia to aud thanks to good exchange rate.

    if you're indonesian, maybe ask local bank what the best way to get money in ?

    Panin Bank usually offer the best rate.

  • GnarlyKnuckles on 31/01/2015 - 00:37
    -1

    Indonesia? Methinks you've read the recent post about making a 6% profit by moving money into then back out of Argentina, hombre ;-)

    • [Deactivated] on 31/01/2015 - 14:22

      Nope. Thinking of starting an accommodation/spa business in Bali.

      • blitz on 31/01/2015 - 15:40

        Interesting!

  • eutama on 31/01/2015 - 09:37

    Citibank plus account? Free transfer anywhere in the world.

    • Baghern on 31/01/2015 - 12:25

      Always wondered if they put a limit on that

  • wortho on 31/01/2015 - 14:00

    Advertised on Ozbargain.
    https://www.worldremit.com/en/Indonesia

    • [Deactivated] on 31/01/2015 - 14:16

      $5,172 limit. I'm not sure 100+ transactions is the way to go. But the rates look good (~2.7%) so an option worth considering.

  • quirki on 31/01/2015 - 16:43

    currencyfair? oanda? using bitcoins? bitcoins might even earn you some arbitrage change.

    • [Deactivated] on 31/01/2015 - 20:18

      Currencyfair and Oanda don't do IDR.

      Can you explain how you'd go about the bitcoin option further?

    • [Deactivated] on 31/01/2015 - 21:55

      I looked at the cost of converting AUD —> BTC —> AUD and I'd be down ~14.5%. Any reason it'd be different going AUD —> BTC —> IDR?

  • RockyRaccoon on 31/01/2015 - 21:43

    Just check with the local banditos chapter they will probably have better insights…..

    But my brother who is in Indonesia says Panin is the best for larger currency amounts.

  • aussie bargain on 01/02/2015 - 01:46

    Idr is a restricted currency so technically speaking whoever u deal with here must use a counterparty there. I normally use hsbc coz I can transfer my aud over there free of charge n then have it converted using a live dealer rate. Local banks are normally the best (panin normally gives the best deals). If u already have a priority (prioritas) bank account there, it is better to transfer the whole amount in aud n then convert it locally. The trouble is that most local banks here normally use correspondents that would convert the aud, which is not good for u cause it is already converted when the funds are there.
    I
    U can try an Indonesian provider (eg kangaroo transfer I think) or ozforex. For those kind of amount, u can speak directly with them on the phone n negotiate something. Not as good as panin, but easier if u r based here.

    • [Deactivated] on 01/02/2015 - 12:12

      You're the third person to suggest this and thankyou for fleshing out the details.

      It's the hardest to research online but from the sounds of it it's the way to go. I've got friends who can help me set up a Panin account so I'll go ahead and do that and do a test transfer.

      Kangaroo Transfer seem to only take a ~2.1% cut which makes it the best non-Panin option so far.

    • trex on 02/02/2015 - 22:54

      How is the IDR a restricted currency?

  • Gerbud on 01/02/2015 - 02:13

    Have a look at currencyfair.com

    • [Deactivated] on 01/02/2015 - 12:14

      Currencyfair and Oanda don't do IDR.

  • derman on 01/02/2015 - 18:53

    Check out AmEx's offering, you might even get some points out of it if you have an AmEx card….
    https://auforex.americanexpress.com/content/home?inav=au_men…

    • [Deactivated] on 01/02/2015 - 19:08

      That looks like it's for multiple small payments instead of one big transfer…

  • msmhw on 01/02/2015 - 21:26

    I think Ceylon Exchange may have better rates, at least they are the cheapest when I was looking to transfer some money overseas. the problem you have to call them to get the current rate.

  • [Deactivated] on 02/02/2015 - 22:56
    -2

    Take some amyl nitrate and shelf it on a jetstar flight.

  • ulun-lpg on 04/02/2015 - 10:58

    have you tried kangaroo service? http://www.kangaroo-service.com/
    been using them for few years and always deliver.

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