When you travel abroad and want to buy something in the local currency, you typically exchange a relatively small amount of currency and pay a higher exchange rate so the currency exchange can earn a small profit.
Not all currency exchanges charge the same rate, and some businesses take advantage of needy travelers in areas flush with tourists to turn a profit. The first place nearly all travelers arrive in a new country is the airport terminal, and that is the first place where you will have an opportunity to exchange currency.
The airport currency exchange rate isn't always the best. Because airport-based currency exchange shops know that you might need local currency to catch a bus, train, or taxi, so they make big profits offering you the worst exchange rate.
Avoid these currency exchanges if possible by getting currency in advance from a local bank or going to an in-airport bank or ATM. Once you get out of the airport, you may find yourself in a market, bazaar or popular tourist area. Exchange shops try to operate where you will need them and take advantage of tourists to make a profit. You will probably find better rates than the airport at a dedicated currency exchange. The best place to exchange money is a local ATM or a bank.
Many foreign banks are happy to exchange your dollars for local currency for a better rate than you find elsewhere, or you can go to an ATM to skip the line.
Many U. If you keep your eyes open, most major cities have banks all over the central business district, bustling neighborhoods, and even in the airport. If you follow that plan, you can enjoy your travels and focus on the fun parts rather than stressing about getting ripped off on currency exchange.
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We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Key Takeaways Currency exchange shops and kiosks in airports are not the best places to exchange money.
For the best rates, try a local bank or a bank ATM to make your currency exchanges. Check to see if your U. Not all currency exchanges charge the same rate. Paying fees is almost inevitable when exchanging money overseas, but minimizing your trips to the ATM by taking out larger sums of money at once can cut down on how much you're paying in fees. Just make sure you guard that cash carefully. Instead, call ahead and order foreign currency from your bank, which is usually available to pick up within a couple of days.
Most cities have currency houses where you can exchange money, as does your hotel and most train or bus stations. Though these spots are fairly convenient, they all offer different exchange rates, and you may find yourself shopping around the entire city to save two percent on a transaction.
This is akin to driving ten miles to save a nickel on a gallon of gas. Because just like the airport kiosk and the ATM, these currency houses charge fees. No matter how you opt to change money overseas, fees are almost inevitable; the key is keeping them to a minimum. Whatever method you choose, nearly everything will be cheaper than the airport kiosk.
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