Currency exchange is essential for traveling abroad. Understanding a few hidden foreign exchange tips can help you avoid costly mistakes and have a memorable travel experience.
Here are six things you need to know about currency conversion before your next trip abroad.
Know the current exchange rate
The first thing to determine before going abroad is the exchange rate . This is the difference between the currencies of two countries. The exchange rate determines the amount of foreign currency you will receive in exchange for your domestic currency. Exchange rates fluctuate constantly. It is therefore important to check the current rate before traveling abroad. Check the exchange rate on the official currency website. This will help you avoid potential scams, such as lower exchange rates at exchange points.
Keep Conversion Fees in Mind
When you exchange currencies, for example from Euro to CFA franc , you have to pay certain fees. These are currency conversion fees, which may vary depending on your currency exchange provider. Most of them charge a flat fee, which is beneficial if you are exchanging a large amount of money. Percentage-based fees and ATM withdrawal fees are also common. To avoid paying high conversion fees, find out beforehand. Compare exchange fees from different providers to find the best service.
Exchange currency at your local bank
Banks are often considered the safest option for currency exchange . Your local bank may offer you competitive rates and low exchange fees. Call your bank or check its website to find out the exchange rate. Exchanging currency at your local bank before your international trip has several advantages. You'll have cash when you arrive at your destination, making booking a taxi and hotel simple.
Use a travel credit card
Travel credit cards are becoming increasingly popular among frequent travelers. With prepaid travel cards, you can convert multiple currencies at fixed exchange rates to avoid fluctuations. Travel-friendly cards are great for budgeting , because they allow you to set the amount you want to spend. Many companies offer rewards and points that allow you to enjoy additional benefits during your trip.
Avoid currency exchange counters at the airport
Changing money at the airport may seem convenient. You arrive in a foreign country and you may need the local currency to take a train, bus or taxi. In fact, airports are one of the worst places to change currency. Exchange rates are low and fees are high. Most airport kiosks know how to spot tourists and therefore make big profits by offering you low exchange rates. Besides airports, popular tourist spots also have currency exchange counters with high conversion fees.
Using an ATM
The most convenient way to exchange currency when you are abroad is to use an ATM. Most banks have an international network of ATMs, allowing you to withdraw money with minimal exchange fees. The bank may charge a fixed rate or a percentage of the withdrawal amount. In any case, avoid frequent withdrawals. Remember to ask your bank about ATM withdrawal limits abroad to avoid any untoward circumstances.
