I run a small export business. I sell leather goods to buyers in America. For three years, I simply accepted whatever my bank gave me when I received payments. Then a friend asked me, "Do you know the US dollar price in Pakistan today?" I did not. That question changed my business. I learned about telegraphic transfer and how the US dollar price in Pakistan affects every single transaction. Here is what I learned.

The Day I Realized I Was Losing Money on Telegraphic Transfer

I received an invoice from a US buyer for ten thousand dollars. My bank converted it to Pakistani rupees and deposited it in my account. I did not think much about it. Then one day, I checked the market US dollar price in Pakistan. It was two hundred eighty rupees. My bank had given me two hundred seventy five rupees per dollar. On ten thousand dollars, that is fifty thousand rupees lost. In one year, over five lakh rupees lost. I was furious at myself. I started researching telegraphic transfer and how to get a better US dollar price in Pakistan.

What Is a Telegraphic Transfer in Simple Words

When a buyer in America sends you money, the money does not travel in a plane. It travels electronically through a system of banks. This electronic transfer is called a telegraphic transfer. The word telegraphic comes from old times when messages were sent by telegraph wires. Today, a telegraphic transfer happens in seconds, but the money can take one to three days to clear. When a customer asks me for telegraphic transfer details, I give them my bank's SWIFT code, my account number, and my name exactly as it appears on my bank statement.

Why Different Banks Give Different US Dollar Price in Pakistan for Telegraphic Transfer

Not every bank offers the same US dollar price in Pakistan for a telegraphic transfer. Some banks add a markup of two to five rupees per dollar. Others offer a rate very close to the market US dollar price in Pakistan. I opened accounts in three different banks. I asked each one to tell me their US dollar price in Pakistan on the same day at the same time. The difference was three rupees per dollar. On a twenty thousand dollar telegraphic transfer, that difference is sixty thousand rupees.

How to Get the Best US Dollar Price in Pakistan for Your Telegraphic Transfer

I now do three things before every telegraphic transfer. First, I check the market US dollar price in Pakistan online. Second, I call three banks and ask for their buying rate for telegraphic transfer. Third, I ask my customer to send the telegraphic transfer to the bank that offers the best US dollar price in Pakistan that day. Some banks also offer a better US dollar price in Pakistan if you maintain a minimum balance. I moved my accounts to the bank that gave me the best combination of US dollar price in Pakistan and low fees.

Hidden Fees in a Telegraphic Transfer

The US dollar price in Pakistan is not the only cost. A telegraphic transfer also has fees. The sending bank charges a fee. The receiving bank charges a fee. Sometimes there are intermediary banks that also take a small cut. I once received a telegraphic transfer of five thousand dollars, but after all fees, only four thousand nine hundred thirty dollars arrived. Then that amount was converted at the US dollar price in Pakistan. I now ask my customers to share the fees with me or to use a telegraphic transfer method that has a fixed fee.

My Current Routine for Telegraphic Transfer

Every Monday morning, I check the US dollar price in Pakistan. If the rate is good, I ask my customers to send payments that week. If the US dollar price in Pakistan is low, I ask them to wait a few days. I also keep a foreign currency account. When a telegraphic transfer arrives in dollars, I do not convert it immediately. I wait for the US dollar price in Pakistan to go up. Last year, I held dollars for two weeks and the US dollar price in Pakistan increased by five rupees. On fifty thousand dollars, that is two lakh fifty thousand rupees extra.

Final Advice for Other Exporters

Do not ignore the telegraphic transfer process. Do not accept whatever US dollar price in Pakistan your bank gives you. Call three banks. Open accounts in at least two banks. Keep a foreign currency account. Watch the market. A few rupees difference per dollar may not seem like much, but over a year of telegraphic transfers, it becomes your profit or your loss. My business survived because I stopped being lazy about telegraphic transfer and started paying attention to US dollar price in Pakistan every single day.