Why Some Currencies Are Harder to Send Than Others
- admin cys
- 20 hours ago
- 3 min read
A Report by CYS Global Remit FinTech Development Unit
Sending USD to the United States can often take less than a day. Sending Chinese Yuan (CNY) to China, however, may take several days, require additional documentation, and occasionally even be returned for further clarification.
To many customers, this can feel frustrating and unnecessary.
In reality, it is not simply a matter of banks being difficult. It reflects the way different currencies are designed to move through the global financial system.
Not All Currencies Operate the Same Way
In the world of cross-border payments, some currencies enjoy significant advantages over others.
Major currencies such as the US Dollar (USD), Euro (EUR), and British Pound (GBP) move through highly liquid, well-established financial networks. Banks maintain extensive correspondent relationships, settlement systems are mature, and payment processes are largely automated.
By contrast, currencies such as the Chinese Renminbi (CNY), Indonesian Rupiah (IDR), Vietnamese Dong (VND), and Philippine Peso (PHP) operate under very different conditions.
The additional friction customers experience is often the direct result of these structural differences.
Capital Controls: The Regulatory Layer
One of the biggest factors is the presence of capital controls.
Many countries maintain regulations governing how much local currency can leave the country, the purpose of the payment, and the supporting documentation required.
China provides one of the clearest examples. Cross-border RMB transactions are subject to oversight by the State Administration of Foreign Exchange (SAFE). Depending on the transaction type, both the sender and recipient may need to provide purpose-of-payment information, invoices, contracts, or other supporting documents before the payment can be approved.
These controls are not intended to create inconvenience. Rather, they help governments maintain currency stability, manage capital flows, and support monetary policy objectives.
For businesses and individuals, however, the practical impact is often additional paperwork, longer processing times, and a greater likelihood of requests for clarification.
Clearing Windows and Market Hours
Timing also plays a significant role.
Major currencies benefit from settlement systems that operate across multiple time zones and offer near-continuous market liquidity.
Many so-called "exotic" currencies rely on domestic clearing systems that operate only during local banking hours. Missing a local settlement window can add an entire business day to the payment process, even if all payment instructions are submitted correctly.
For example, a Singapore Dollar (SGD) to Indonesian Rupiah (IDR) transfer submitted late in the Singapore business day may miss Jakarta's processing window, resulting in a delay that has nothing to do with the sending bank's efficiency.
The Liquidity Factor
Liquidity is another important consideration.
Widely traded currencies attract a large number of buyers and sellers, resulting in tighter exchange rate spreads and faster execution.
Less-traded currencies often have fewer market participants providing quotes at any given time. This can lead to wider spreads, greater pricing volatility, and more challenges in securing optimal exchange rates.
Specialised payment providers that process large volumes in these corridors can often access better pricing and more reliable settlement channels by aggregating transaction flows. This gives them an advantage over institutions that handle such currencies only occasionally.
What This Means for Customers
For businesses and individuals sending money to China, Indonesia, Vietnam, the Philippines, and other regulated markets, a few simple steps can significantly improve the payment experience.
These include:
• Initiating payments early in the local banking day
• Preparing supporting documentation in advance
• Ensuring beneficiary information is complete and accurate
• Working with a provider that maintains dedicated expertise and infrastructure within the relevant payment corridor
The complexity of certain currencies is unlikely to disappear anytime soon. However, understanding why these challenges exist—and working with the right payment partner—can make cross-border transactions significantly smoother and more predictable.
Because when it comes to international payments, success is often determined not only by where the money is going, but also by how the currency itself moves.
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