Many immigrants in the US face a problem of transferring large amounts of money to and from their home country, usually including currency exchange. As a fact of life, transferring via a financial institution like a bank costs money in the form of fees on exchanging the currency, differences between the "buy", "sell" and "official" exchange rates, and the transfer itself.
In the search for the cheapest legal way to transfer money, some ideas include the exchange of funds between two individuals who need the transfer on opposite directions.
For example, person A needs to transfer $100,000 from the US to his checking account in a bank in Israel, to be converted to the local currency (say, ILS 350,000). At the same time, person B needs to transfer a similar amount from his checking account in Israel to the US, to be converted from ILS to USD.
Is there any legal issue (in the USA or Israel) with making both transfers domestically? I.e., Person A transfers $100,000 to person B in the US and person B transfers ILS 350,000 to person A in Israel?
If this is a legal move, is there any reporting that needs to be done to the authorities?
If this is only legal in smaller amounts, then what is the limit?