When you travel to countries that use a different currency system, you
will be constantly faced with the issue of exchanging money. In general,
it is almost always better to exchange money in the country you are
traveling in for the best rates. Before you go, research the current
exchange rate so you are prepared to evaluate the deals offered at
different locations. No matter where you exchange money, do so as few
times as possible to avoid having service fees pile up.
Banks & ATMs : Banks usually provide the best exchange rates;
most don't take commissions, and if they do, those fees are very small
compared to other sources. To exchange money at a bank, simply go into a
branch with your local currency or bring along a traveler's checks or
your credit card. Note that your credit card company may charge a fee
for a cash withdrawal. ATMs associated with bank branches will give you
the same rate of exchange you'll find inside the bank, and will dispense
cash in local currency. Contact your bank in advance to find out if
they charge fees for withdrawals at foreign ATMs; these fees will be in
addition to any charged by the bank that owns the ATM.
Debit Cards & Credit Cards : The easiest way to exchange your
currency for foreign currency is to use your credit and debit cards for
purchases whenever possible. You will not need to carry large amounts
of cash that can make you a target for thieves. Bring debit cards that
have Visa or MasterCard logos and/or are on the Cirrus or Plus
networks---look for those logos on the back of the card. Check with your
bank or credit card company about fees charged for foreign
transactions, as those can add up. Note that if you're traveling off the
beaten path, especially in developing nations, you may not be able to
use debit and credit cards for many purchases.
Hotels : Many hotels will exchange money and cash traveler's
checks. Often, the simple convenience of this service can't be beat,
especially if you are, say, staying in an area that is not particularly
safe or are leaving early in the morning and need money for a taxi. But
watch out for high exchange fees, which vary from hotel to hotel.
Exchange Counters : The most obvious place to exchange money
while traveling is at an exchange office. In areas that see a good deal
of tourism, exchange places are usually easy to find; all major airports
will have at least one currency-exchange desk. Exchange rates vary
greatly, so shop around to find the deal that will cost you the least.
While money changers are convenient, they're typically more expensive
than banks, especially after they tack on their service fees.
Places to Avoid : At land border crossings, particularly in
developing countries, exchange money sparingly. Scam artists will take
advantage of the disorientation you experience after a long journey and a
chaotic crossing to give you ridiculously bad exchange rates. The same
is true for individuals waving wads of cash on the street. In addition,
don't look to merchants, even those that accept traveler's checks, to
give you the best rates. You might fare okay at a major department store
that is used to accepting foreign currencies and traveler's checks, but
always know what the standard rate is beforehand and be sure to ask the
cashier what the store is offering before he makes the exchange.
