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 for US dollar to PKR. Then I learned about telegraphic transfer and how to get a better rate. Here are six steps that saved me two lakh rupees in one year.

1. Check the Market US Dollar Price in Pakistan Daily

The US dollar price in Pakistan changes every day. I check it every morning on my phone. Some days it is high. Some days it is low. I only convert my dollars when the US dollar price in Pakistan is favorable. Last year, I waited two weeks and the US dollar price in Pakistan went up by five rupees. That gave me an extra two lakh rupees on forty thousand dollars.

2. Open Accounts in at Least Two Banks

Not every bank offers the same US dollar price in Pakistan. I opened accounts in three different banks. On the same day at the same time, the US dollar price in Pakistan was different in each bank. The difference was three rupees per dollar. On a telegraphic transfer of twenty thousand dollars, that difference is sixty thousand rupees. Always compare banks before receiving a telegraphic transfer.

3. Ask for the Buying Rate, Not the Selling Rate

When you receive a telegraphic transfer, the bank gives you the buying rate for US dollar to PKR. But many banks have two rates. One for buying dollars and one for selling. Always ask for the buying rate. Some banks try to give you a lower US dollar price in Pakistan if you do not ask. Be clear. Ask for the exact US dollar price in Pakistan for your telegraphic transfer.

4. Negotiate If You Are a Regular Customer

If you receive multiple telegraphic transfers every month, you have negotiating power. I told my bank that I would move my account if they did not give me a better US dollar price in Pakistan. They offered me an extra two rupees per dollar. That does not sound like much, but on fifty thousand dollars a year, that is one lakh rupees. Always ask for a better US dollar price in Pakistan.

5. Keep a Foreign Currency Account

Instead of converting your telegraphic transfer immediately, keep the dollars in a foreign currency account. This way, you can wait for the US dollar price in Pakistan to go up. I kept forty thousand dollars for two weeks last year. The US dollar price in Pakistan went up by five rupees. I made an extra two lakh rupees just by waiting. A foreign currency account is free to open. It can save you a lot of money.

6. Compare Telegraphic Transfer Fees

The US dollar price in Pakistan is not the only cost. Banks also charge fees for telegraphic transfer. Some banks charge a flat fee. Others charge a percentage. I found that a bank with a slightly lower US dollar price in Pakistan but a fixed fee was better than a bank with a higher US dollar price in Pakistan but a percentage fee. Always calculate the total cost, not just the US dollar price in Pakistan.