Today’s question is one that can save you money or break the bank. Bill Bailey Travel Club takes a closer look at foreign currency exchange. When should you exchange your money? What is the current rate? Do I really need to exchange all of my money? Each of these is a valid travel question and can be very important depending on your destination for travel.
What is foreign exchange really?
Foreign exchange is simply the transfer of money from one to another of equal value in different countries. With travel being one of the most lucrative business for many countries, finding ways to exchange money is certainly not difficult, but the question is, is it really necessary.
The answer to this is that it depends on the country and what you are going to purchase. Most accommodations will accept U.S. money in Europe and some other countries. Another viable option are travelers checks as well. Once you step onto the streets of a foreign country though, you are often obligated to use the local currency when making purchases.
A viable solution is to have a mix of each of the following: travelers checks, U.S. money and the native currency as well. When leaving a foreign country, you will occasionally need to pay a fee at the airport, and this is more than likely, going to require the actual currency of the area. Therefore, you are advised to keep this in mind and save some of your foreign currency for the return trip.
When should I exchange my money?
Again, depending on the destination, you can save money on the exchange based on where you do it. Banks and travel agencies will usually be able to provide you with a better exchange rate than you would receive at your hotel in a foreign country, so you are usually advised by most to exchange before you go or at least use the countries bank or exchange sources rather than just exchanging as you go.
How do I find the current rate of exchange?
There are many places you can go to find out the current exchange rate. Newspapers, banks or even online sites including those provided by the government, can advise you as to the current rates on your specific destination. Be advised, that currency exchanges can fluctuate frequently and follow the trends when exchanging your money. If the value seems to be fluctuating in your favor, try to exchange when it is the most beneficial for you.
Currency exchange is not a difficult part of your travel, but being an informed traveler can help you make the most of your money when traveling abroad. As with all aspects of travel abroad, understanding how it works will help you make the most of your money. Bill Bailey Travel Club wishes you a wonderful vacation as an informed traveler. Make the most of your vacation with tips on travel from Bill Bailey Travel Club.