• Things to Remember While Exchanging Currencies

    | Updated on July 7, 2023
    ●   Research the exchange rates
    ●   Avoid offices with no exchange fees
    ●   Use a currency converter
    ●   Understand the terminology
    ●   Do proper research on the country you are visiting
    ●   Avoid exchange at the airport

    Most of us have a dream to travel the world, explore new countries, try new cuisines, live their culture, know about European history, and whatnot. In fact, we even give ourselves a break from all the heated and recurring daily life schedules and go on a trip. Well, that is what the experts say, that at least once a year, we should give ourselves a break.

    But what they don’t suggest is how to do so. There are tons of things to keep in mind and manage while traveling, especially when you are traveling to a whole other country. And the main aspect while traveling to a different nation is currency exchange. This is what most people lack and this is what most people don’t know how to impose correctly. But now that you are here, you have got nothing to worry about, here’s everything you should keep in mind while exchanging currency.

    Here are some tips that you should keep in mind before having a currency exchange, have a look and see what works out for you.

    Research the Exchange Rates

    We all know that we can get to know about anything anytime with a snap of our fingers. Hence, before directly hopping on to the exchange office, make sure you check the current rates and are well aware of the current currency rates and what are the recent fluctuations in them.

    In fact, in the current time, with tons of apps and websites, it is so convenient to check up on anything. Just visit any of them and track the current currency value.

    Avoid Offices With No Exchange Fees

    Usually, people are lured away by the fact that they won’t have to pay any transaction costs. But what they don’t know is places with no commissions or exchange fees are double the ones with exchange fees.

    Rates at these places are typically lower, hence, you may end up getting way lesser amounts than the places with exchange commissions or fees. So it’s far better that you pay some exchange fees and get a better amount for your exchange.

    Use a Currency Converter

    Just like you should check the currency rates and their fluctuations beforehand, you should also have a look at it with the currency converter. Since there are tons of apps and websites for everything, there are a few online currency converters as well. Such platforms will tell you the exact rates that you will receive from exchanging a particular currency. Hence, this way you won’t be ditched by any currency exchange vendor.

    Understand the Terminology

    Every process has its own terminology and technical jargon and the same goes for currency exchange. This is why before you get started with the exchange process, there is a specific exchange terminology that you should comprehend.

    The local exchange office may try to confuse you and even make it more complex, so here are some common terms that you should know so that you understand things better:

     ●   Exchange Rate- It’s the amount you get in terms of local currency when you exchange your cash with it. For example, if an Indian tourist visits the Maldives, the local currency there is Rufiyaa. So the unit of Rufiyaa you will receive in exchange for INR 100 or whatever is the local exchange rate of the Maldives.

     ●   Buy Rate- There are often chances that you won’t spend the entire budget you had for the trip. But at the end of the trip, you won’t be using that money, would you? Of course not. This is why you can sell the leftover cash in that currency and get back your home country’s cash. And the amount you will receive after selling the local currency is known as the Buy Rate.

     ●   Bank to Bank Rate- This is the wholesale exchange rate that is used by the banks themselves. Basically, this is the rate at which you get your cash withdrawal done at any foreign ATM.

    Also Read: Cryptocurrency and the Future of Money

    Do Proper Research on the Country You are Visiting

    If you are visiting a country with some major international currencies like the Dollar, Yen, or Pound, then the process will be very simple and straightforward. You can get the proper value of it anywhere internationally, but there are some countries that have quite an unusual method for the same.

    Like Cuba has its own currency for tourists, plus you cannot exchange Moroccan currency outside the country. And countries like Cambodia, Vietnam, and Taiwan use the US Dollar as their secondary currency. This states one thing, every country has its own set of rules for tourism and currency exchange, and this is why it is crucial that you make yourself familiar with the country’s rules of currency exchange.

    Avoid Exchange at the Airport

    Some people often leave the currency exchange for the final call and assume that they will do so at the airport only. If you are one of those, we advise you to avoid leaving it at the last moment. Foreign exchange offices at the airport have the maximum conversion fees and rates. They have a margin of 8-12% at least of the cash you pay.

    It is better that you have a little exchange of money before and have the rest after you land there and have had your research.

    This was pretty much all about the things you should keep in mind before exchanging currencies. These tips can help you save a lot of time and money during your trip. It’s always better to be aware of things than to be fooled at the very moment.

    Joseph Williams
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