- Wise and Remitly have confirmed that they will be suspending payment services in Russia as a result of the country’s invasion of Ukraine.
- Wise has also shared some details on its decision to change the way that it calculates online money transfer exchange rates in the country.
- “When you transfer money from a different currency (for example EUR or GBP), we’ll determine the equivalent value in USD using the mid-market rate set by Reuters or XE,” it said.
Two major providers in the international money transfer space have announced that they will be suspending services to Russia in the wake of the country’s recent invasion of Ukraine.
Wise, which is based in London, has made the move – as has Remitly.
According to Wise, the measures it has instituted will be kept “under constant review”.
The move comes after Wise confirmed that it had limited its daily transfer amount inward towards Russia to around £200.
The idea behind this, the firm said, was to be sure that the company could get its services to as many people as possible rather than just some.
Remitly, meanwhile, has also instituted a similar move.
The move comes against a broader context of decisions to target Russia through sanctions as a result of the country’s decision to invade Ukraine.
SWIFT, the international financial messaging system, has also removed some Russian banks from its services – meaning that many financial institutions are finding it difficult to operate there.
Wise has also taken some steps in regard to the cost of transferring money into Ukraine.
In a statement, the company said that the cost that a customer would need to pay when transferring inward would depend on the type of currency being used.
“When you transfer USD to UAH, we’ll use the exchange rate set by the National Bank of Ukraine,” it explained.
The firm went on to say, however, that currency transfers from other currencies would be treated differently in terms of how much they cost.
“When you transfer money from a different currency (for example EUR or GBP), we’ll determine the equivalent value in USD using the mid-market rate set by Reuters or XE,” it said.
“Then, we’ll use the exchange rate set by the National Bank of Ukraine to convert that amount to UAH.”
This means that some people in the country will have to pay more expensive rates than they are used to or were expecting.
The company did, however, explain that it was making this move as part of an attempt to stabilise the market.
“Exchange rates are volatile right now. Recently, our sources to determine the mid-market rate, such as Reuters or XE, have become inaccurate,” it said.
“To stabilise the market, the Central Bank of Ukraine has decided to set a fixed rate for currency transactions.”
You can receive more information about the workings of the online money transfer sector over at our reviews section.
