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Currency Exchange

Advice on Getting the Best Exchange Rate for Your Money


Close-up of a Currency Exchange Sign

If you can't find an ATM, a currency exchange booth can suffice.

Keith Brofsky/Photodisc/Getty Images

When you travel overseas, it's likely you will require local currency to get around and make small purchases (big ones normally can be charged). To do so, you will need to exchange your own currency (such as US Dollars or Euros) for coins and banknotes of another country.

Since currency exchange rates vary from place to place and day to day, where and how you exchange currency can make a difference in your wallet.

Currency Exchange Converter
Before you travel, learn what the currency exchange rate is in the country you plan to visit by using the Universal Currency Converter.

This utility provides an idea of the latest available exchange rates, based on the mid-point between buy and sell rates of large-value transactions in global currency markets.

To Exchange Currency Before You Leave Home
Many travelers, especially those flying a long distance and landing in a foreign country early in the morning or late at night when banks and currency exchange desks may be closed, prefer to acquire a small amount of foreign currency before they depart on a trip.

Having the local equivalent of US $100 in your pocket is usually enough to pay for a cab ride to your destination, a snack, and small incidentals without having to search for a currency exchange open for business.

In large cities, major banks and travel agencies sometimes feature a currency exchange desk. Some hotels also offer this as a courtesy, but their exchange rate is rarely as good as a bank's.

Where to Find the Best Currency Exchange Rates
To get the best exchange rate, wait until you arrive at your destination. While most major airports feature a currency exchange desk, you are likely to get a better rate directly from an ATM machine affliated with a major bank.

ATM cards most likely to work trouble-free overseas are those with a four-digit PIN number. Since you may be charged a usage fee by both the local bank and your home institution, it's advisable make one large instead of several small withdrawals whenever possible - and keep your cash in a safe place out of pickpockets' range.

Using a Credit Card to Exchange Currency
As long as you have a working PIN number, you can also use your credit or debit card to get cash overseas. Find out if there are credit card ATM machines where you will be traveling:

Having a credit card is especially useful when you travel. With one, it's unnecessary to carry large sums of money. Use a credit card rather than cash to pay for larger expenses, such as hotel bills and major purchases, since you will have a receipt of the transaction. If a bill is disputed, your credit card company may be able to help you settle the matter when you get home.

Do keep in mind, however, that the majority of credit card companies levy an additional fee for overseas usage. If you're not sure, check with your company before you leave home.

Money for Travelers Without an ATM or Credit Card
American Express offers American Express Gift Cards. Similar to a pre-paid debit card, these let buyers load up to $3,000 on a card for a nominal fee.

Young people 18 or older who don't have credit cards and individuals with bad credit will find this handy while traveling. The TravelFunds Card is accepted in the same places as the American Express Card and can be used to withdraw up to $400 daily at ATMs with the American Express logo.

Traveler's Checks
As credit and ATM cards have become more popular, fewer and fewer people choose to go to the trouble of buying traveler's checks. Nonetheless, they remain a secure way to carry money.

What to Do with Leftover Currency
In most cases, you'll have some foreign currency left over by the time you're ready to return home. Here's what you can do with it:

  • Spend it on gifts for yourselves, friends, or family at the airport dutyfree shop
  • Donate it to charity. Find a place to do this at the airport or send it to UNICEF's Change for Good program, which helps children around the world
  • Convert it back to your local currency at the airport
  • Exchange it when you get home
  • Keep it as a souvenir of your trip

When You Don't Have to Exchange Currency
Merchants in some countries welcome American dollars instead of the local currency. This is common in a number of Caribbean nations, including the Bahamas. While this is a convenience, you are likely to pay less for goods and services in the local currency.

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