There are a lot of charges coming into play while exchanging currency with some of them including the commissions, credit and surcharges, ATM fees and others. Therefore you will have to spend a little extra while exchanging one currency for the other. When travelling in a foreign country, you need to know how to minimize these extra expenses and find the best exchange rate.
Do some research:
The ultimate way to get the best exchange rate is to do some research. You must first know what the current rate is. Therefore before you leave for the trip, benefit from an online currency converter and get an idea regarding the exchange rates you can expect. During extended trips, check the rates periodically to keep track of the major changes from time to time.
Make use of ATM and credit cards:
When you buy foreign currency with credit or ATM cards, you are most likely to get the best inter-bank exchange rates. In most case, these rates will be 2 to 7 percent better than the rates you get while exchanging in cash or on travelers checks. For large purchases like hotel bills, car rentals or tickets always make use of credit cards. At the same time find out if your service provider is charging extra while you are shopping in foreign currencies. Some local vendors like shops and restaurants may also charge an extra fee for paying through credit cards. For day to day cash transactions, it is best to make use of the ATMs in the country if they are available in good numbers. At the same time, avoid multiple withdrawals and carry as much cash as you will feel comfortable with you after every withdrawal.
Cash and Traveler’s Checks:
While you exchange cash and travelers checks, it is always better to exchange the money in the country you are visiting. However, there is an exception to this, if you come to know that your currency is going to go much lower while you are away resulting in a very low exchange rate, it is better to exchange as much as possible before moving. Banks and post offices usually give you the best exchange rates. Some hotels are also worth exploring in this regard. On the move, you will come across a number of change bureaus in airports, train stations and tourist spots. Since most of them can have the worst rates, it is best to avoid them. Never jump into some transaction without a proper inquiry. Shop around and find out the exchange rates carefully. Ask for net rate after commissions. Never avail of the services of black market exchanges that might give you counterfeit currency or push you into some scam.