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Be Aware Of The Exchange Rates When You Travel

Money Changer

If you travel frequently to the same destination it may be wise to purchase a larger sum of money dependent on the current currency exchange rates.

The rates can fluctuate and if you become aware of a favorable rate it is a good investment to purchase more money at that time.

If you’re planning on traveling to another country you’ll find yourself wondering about current currency exchange rates. It’s important to know how far your dollars will go when you get to your destination.
You simply need to conduct a search looking for current currency exchange rates. Once you’ve chosen a site the rest is very easy.  You put in the amount that you’d liked converted and then choose the country whose currency you have and the country whose currency you want to.

These sites have the current currency exchange rates and you’ll see exactly what your money is worth.

It can also be confusing if you try to exchange money at a financial institution in the country you are visiting. Although most foreign banks have English speaking associates who will explain the current currency exchange rates to you, some don’t.

If this is the case and you don’t speak the language of the country you are visiting it can be frustrating exchanging your money there.

One method of finding out current currency exchange rates is to visit your local bank. They will have the most up to date rates. Your bank can also exchange your money for you prior to your trip.

Many banks also offer this service over the phone. They will quote the current currency exchange rates in messages that are recorded daily. The bank’s customer simply calls an automated system and can listen to the current currency exchange rates at their convenience.

Many of these types of vendors actually charge a significant service fee for this. Therefore although the current currency exchange rates may be favorable the service fee could make your trip more expensive than you had planned.

One of the best ways to minimize currency exchange fees is to get some cash from your bank or credit union in the U.S. before you depart on your trip. Depending on which country (or countries) you’re visiting, most major U.S. banks will have foreign currency available to sell to you. For example, Wells Fargo offers 70 currencies for use in more than 100 countries, and Bank of America exchanges currencies for more than 100 countries.

Many people wait until they arrive in their destination country before exchanging their money. In many airports there are vendors who will do this for you. Although this is a very convenient method of exchanging money it can also be costly.  These places offer convenience, but their exchange rates are typically much less favorable than your bank at home or banks at the travel destination.

If you are traveling sometime in the future and want to ensure that you get the best value for your dollar you can check out current currency exchange rates on the internet. There are several websites that offer this information for free.

Once you arrive at your destination country, you may choose to conserve your foreign currency cash and try to make payments with your credit or debit card as much as possible.
But this can pose another problem: foreign transaction fees.  This means that if you go out for dinner in London, Paris or Tokyo and spend the equivalent of $100 at the restaurant, your bank or card issuer will add an extra $3 fee to the cost of your meal. If you spend a total of $5,000 on a trip, and get charged a foreign transaction fee of 3% on every purchase, it would amount to $150 of extra charges.

If you want to get cash from an ATM in another country, check to see if your bank has ATMs in your destination city—you may be able to avoid costly ATM fees. Keep in mind that your bank may charge you a fee for using an out-of-network ATM.

 

 

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