What is the difference between the official and market exchange rate for USD to KRW?

When dealing with international remittance, understanding the difference between the official and market exchange rates is essential, especially for USD to KRW (US Dollar to South Korean Won). The official exchange rate is set by central banks or government entities, and it may not always reflect the true value of the currency in global markets. It is typically used for government transactions and large-scale financial operations.

On the other hand, the market exchange rate is determined by supply and demand factors in the global foreign exchange market. This rate fluctuates frequently and is usually more reflective of the real-time value of the USD against the KRW. It’s the rate that businesses, individuals, and remittance services commonly use for everyday transactions.

For remittance services, the market rate often offers better value for customers, as it’s typically more competitive. However, it’s important to note that exchange service providers may include additional fees or margins on the market rate, which could impact the total amount received by the recipient in South Korea.

Understanding these rates helps customers make informed choices when sending money abroad and ensures that the recipient gets the best possible value for their transfer.

About Panda Remit

Panda Remit is committed to providing global users with more convenient, safe, reliable, and affordable online cross-border remittance services。
International remittance services from more than 30 countries/regions around the world are now available: including Japan, Hong Kong, Europe, the United States, Australia, and other markets, and are recognized and trusted by millions of users around the world.
Visit Panda Remit Official Website or Download PandaRemit App, to learn more about remittance info.