Currencies – the hardest part of travelling
January 14, 2008 by Jean Mercedes
Filed under Business
Our first poll here at doingbizabroad asked the question: what is the hardest part of international travel? Surprisingly, the number one answer was not “jet lag” or “languages” but “currencies”.
We all know that feeling – you have a pocket full of foreign coins and bills (sometimes even mixed with you home currency), someone has just told you the price in a foreign language, you have no clue what bills or coins to pull out and the line behind you is getting longer and longer. You have two main worries – looking like an idiot and getting ripped off.
Here are some tips for dealing with foreign currencies:
- Use credit cards whenever you can.
- Pre-book taxis.
Local transportation can be arranged in advance so that the invoice is sent to your local office. Alternatively, book the taxi in advance and tell them you will be paying with a credit card. - Keep a special wallet or coin purse for the foreign currency you use most.
- Know the exchange rate before you travel.
There are a number of websites which offer this service. Try Yahoo, Oanda or Xe. - Avoid changing money at hotels and at currency exchange booths (at the airport or otherwise) as they give you the worst exchange rates.
- Use your ATM card to get the best exchange rate on cash.
Most ATM cards are now accepted around the world, but I have heard that many ATM machines only accept 4-digit PINs. If your PIN is longer, you might want to change it before you travel. - Alternatively, consider a pre-paid ATM card like the one being offered by Visa and Travelex. See Travelex for more details.
What other tips can you offer fellow travellers?
Image from www.luckytips.co.uk
I spent 4 months in Dublin last year, and I don’t think I ever entirely got used to the Euro. But I used my debit card — it really did simplify things.
Also, since I was there for a longer term, I made sure to check the exchange rate about once a week or once every two weeks. It helped keep me on the right mind set.
Great tips! I especially like to point out the credit card tip when I travel. Even though you still get charged for an exchange fee, it’s often not THAT much, and it’s easier than carrying around a wad of cash.
I would also add that it can be a good idea to familiarize yourself with how the currency works before going. My parents found this out the hard way when they went to Britain!
Thanks for your comments! Those are two very good points. You will be charged an exchange fee for using your credit card abroad. But even with the fee, it is the best way to “exchange” money, because it gives you the best rates.
Foreign coins are the trickiest to get used to. Bills are usually easier, because the numbers are bigger than on the coins. The next time you are struggling with foreign coins, take a look at your US coins – there are no numerals on them at all! They say “one cent” or “one dime”. Who, besides an American, knows what a dime is?
not that I’m trying to debunk cards, but… I have quite awesome friends among Russians who privileged enough to travel abroad enough – yet, they care about spending and when conversation came to exchange courses here and there, they noted that at least around of Europe (after EUR removed need for exchange) Visa and Mastercard _both_ went bullies and have rather close to worst rates, compared to exchange kiosks. They also noted that it does not automatically mean kiosks are better – it is your analysis before you go to country what is best driver. This is Russian POV anyway…