Tips for Currency Exchange When Travelling Abroad
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Introduction
While flying abroad there are numerous things you have to plan for apart from just booking your accommodation and flight tickets like buying international travel insurance policy and most importantly doing currency exchange. The procedure for changing your money from one currency to another quite be very tedious, however, if you follow some smart tips then you can do the exchange with ease and also avoid losing money.
Tips For Currency Exchange
- ALWAYS AVOID NO FEE EXCHANGE OFFICES
Every tourist spot has a couple of exchange offices that don’t charge extra currency conversion fees. However, it would be best to avoid these places as the currency exchange rate is usually the lowest. So you’ll end up getting away a lesser amount compared to the places which have a fee. Better get your currency converted at a place where they ask you to pay some transaction charge but will offer you an excellent return that is valuable for your journey. - EXCHANGE SOME CASH BEFORE ARRIVING IN YOUR NEXT COUNTRY
Sometimes exchange rates are more favourable outside of the country whose currency you’re looking for. However, even if they’re not, it’s best to get some cash before arrival just in case your debit card doesn’t work or gets stolen. - DO A PROPER RESEARCH ON VISITING COUNTRY’S CURRENCY
The major international currencies are straightforward, and the exchange process is simple. You can easily spend Yen, Dollar and Pound internationally anywhere and get a proper currency exchange value in every country. But then some of the countries have peculiar and unusual exchange rules. Cuba has a different currency for tourists, and you cannot exchange Moroccan currency outside the country. Cambodia, Taiwan and Vietnam use US Dollars are their secondary currency. Therefore, it is important to understand currency exchange rules while visiting a new country. - AVOID EXCHANGING AT THE AIRPORT
The foreign exchange offices at airports have the highest conversion fee and rates. They charge you with a margin of 8% to 12% of the cash you pay them. Therefore, it is advisable to get foreign cash before landing there and make the rest of the exchange after a day or two of research in the market. - AVOID THE UNIVERSAL CURRENCY EXCHANGE PRACTICES
The Dollar is one of the most popular currencies worldwide. Many South Asian countries use the Dollar as a dual currency system. When you are shopping or making a purchase in a foreign country, the locals often give you an option of paying in terms of dollars. The argument in favour of this practice is that it makes tracking expenses more manageable. You should always say no to such offers and insist on making the local currency payment. This way, you can evade a widespread method of getting cheated as these shops charge unnecessary conversion fees in the name of Dollar or what they call a dynamic currency exchange. - USE CREDIT CARDS FOR BIGGER PURCHASES
You can save even more by using your no-fee credit card when paying for hotels, car rentals and other large purchases. Just remember, in many parts of the world, cash is still king, and vendors won’t accept credit cards for smaller transactions - ALWAYS COMPARE BETWEEN MULTIPLE SHOPS
The currency exchange rate is ever fluctuating. It goes up and down daily, but the rate goes through severe variation from one trader to another. The currency exchange rates around the airport and prime market areas are comparatively higher than those around less popular touristy areas.
Additionally, if you're interested in knowing which countries offer a higher value for the Indian Rupee, check out Countries Where Indian Currency is Strong.
Conclusion
Using the tips mentioned above, you can save a lot of money on local exchange rates and avoid getting cheated during the trip. Apart from doing some currency exchange before flying abroad, opting for a travel insurance policy is also advisable. It provides coverage for financial losses arising from theft, flight delays, luggage loss, or any other unforeseen event.
Also Read: Best Ways to Exchange Foreign Currency in India 2024
Source: hdfcergo.com
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