Author Archives: Xchange Of America

Make Money Selling Money? Why Foreign Currency May Be a Smart Investment

Diversify, diversify, diversify: It’s among the most common — even cliched — advice from financial experts to investors.

But what if you want to go further with that than the usual methods of playing different sectors in the stock market, or putting a share of your portfolio into conservative bonds or riskier international markets?

You might consider trading foreign currencies, which just a couple of decades ago was an option mostly restricted to big money investors. Now, it’s widely available to the general public, and generating increasing interest.

And in today’s age of social networking, foreign exchange has gone social too: In addition to seeing that a friend “liked” a photo or a business on Facebook, you can now trade on sites that let you see when that friend bought Swiss francs or sold yen.

Foreign currency trading, which became possible for the average investor about 15 years ago, has added that social aspect — and been made all the easier — thanks to online brokers like Xchange of America. The idea behind their sites is to remove as many barriers to entry as possible, so that anyone — not just savvy investors, can use them.

A Risk, But a Limited One

As exciting as the adrenalin rush of foreign exchange trading can be, it requires as much homework as any other investment, and even then, of course, there are no guarantees. As with any investment, the odds can turn against you. But currency trading offers a bit of protection by being a bit less flexible: You can’t buy any nation’s money on margin, so unlike equity trading, where a bad leveraged buy can leave you owing more than your initial investment, in the currency exchange market, your risk is limited. Though forex trading can help you take advantage of market changes at home, the true advantage can be more global.

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Mexican Peso Exchange Rate

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Whether you want to see the famous Mayan ruins of Chichen Itza with your own eyes, or plan on resting them comfortably beside your hotel pool, Xchange of America has the ideal travel money solution for your trip to Mexico. Buy Mexican Pesos ($) online from Xchange of America in a way that suits you.

The best part is you can do it all without even leaving the house. At the touch of a button you can have your order delivered directly to your front door, with next day delivery available. Or if you prefer, have it sent to a Xchange of America store of your choice and pick it up at your convenience. It’s fair to say that getting your foreign currency has never been easier.

About the Mexican Peso

The Mexican Peso is commonly represented by its currency code (MXN) and in its symbol form ($). Did you know that Mexico actually used the $ symbol before the United States? However in some places you might see it referred to as MX$ or $100 MN (MN stands for Moneda Nacional, or National Currency) helping you to differentiate the peso with the dollar.

Facts

The Mexican Peso coin is made up of 100 Mexican cents; or centavos. The most popular banknotes are $50, $100 and $200, but rarer $20, $500 and $1,000 notes do exist. Coins are minted in 5, 10, 20 and 50 centavos, although those under 50 centavos are rarely seen now. You can also use $1, $2, $5 and $10 coins, which are quite handy when you are paying for taxi fares and smaller tips.

About Mexico

For those seeking sun, sand and adventure, Mexico is the perfect destination. Cancun and other resorts on the Caribbean coast are noted for their “good time” atmosphere as well as their beautiful beaches; But there is more than partying to be had in Mexico, as it is also a country steeped in history.
You are spoiled for choice if you want to explore ancient ruins in Mexico. One of the great wonders of the world – Chichen Itza – is a drive away from the main resorts, and is a sight that all visitors to Mexico should experience.

Why Buy Mexican Pesos from Xchange of America?

We will not be undersold online on our website. If you do find a better price offered by another foreign currency retailer online, we will refund the difference between the price paid by you and the more competitive price in accordance with our Online Price Promise Terms and Conditions.

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A New and Improved Euro Currency

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When the European Union Euro was released, it replaced the currency for 14 countries. Since then, other European Union members have adopted the euro and the list continues to grow as the euro grows in popularity.

Total number of countries using the euro now is 17 of the 27 members of the European Union. Currencies that were replaced when the euro began to circulate in January of 2002:

European legacy currencies

Austria Schilling	Ireland Punt
Belgium Franc	Italy Lire
Finland Markka	Luxembourg Franc
France Frank	Netherlands Guilder
Germany Mark	Portugal Escudo
Greece Drachma	Spain Peseta

Other countries which have replaced their currency for the Euro since its physical release:

Cyprus Pound

Estonia Kroon

Malta Lira

Slovakia Koruna

Slovenia Tolar

While the euro stumbled in 2002 when it hit a record low of $0.8252, once it regained its composure, it rose to a record high of $1.6038 in 2008. Because of financial troubles which plagued the Greek and Spanish banking system, the euro seemed to be on its way down. As a result, the euro dropped back to $1.20.

Now with just over a decade since its release, the euro is getting a makeover. New technology and greater security features will make the new banknotes more difficult to counterfeit.

The two types of banknotes are expected to circulate at the same time, but not for very long. When traveling abroad, change your old banknotes to new because when you return, a quick swap will not be possible. If you have been holding onto euro banknotes in the US you will not be able to swap those for current, you will have to sell them then purchase the new banknotes at current market value.

If you bring them to us, we will do our very best to give you the best rates on both sides of the coin. In the meantime, take your vacations and spend your old and new euro, a total of 17 nations await your arrival.

Polymer plastic money, the best counterfeit protection technology available today?

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In an effort to combat counterfeiting and reduce costs over time, more countries are producing polymer banknotes. is just the latest in a long line of countries that have either fully adapted to polymer notes, or simply created a commemorative note or single denomination in polymer.

Polymer banknotes were originally developed by the Reserve Bank of , Commonwealth Scientific and Industrial Research Organization and The University of Melbourne and were first issued as currency in in 1988. This type of banknote was created to incorporate many security features not available to paper banknotes, making counterfeiting much more difficult. These new notes made of plastic polymers also greatly enhanced durability of the notes.

These “plastic” notes are made from a non-fibrous and non-porous polymer which compared to paper banknotes are more durable, harder to tear, more resistant to folding, more resistant to soil, waterproof (and washing machine proof), easier to machine process, and are shreddable and recyclable at the end of their useful lives.
Of course, there are also disadvantages to adopting the polymer banknotes. They are harder to fold and when creased become difficult to bring back to an original flattened state. The notes are more slippery, which makes them harder to count by hand. Polymer notes cost more to produce in the short-term, which could be a drawback for developing countries. And, even though the notes are recyclable, some less developed countries may not have the facilities to recycle them – and when they burn they pollute the air.

As of 2011, at least seven countries have converted fully to polymer banknotes. Some of the more recent adoptees include:

Canada, having released the savvy 100 dollar note and 50 dollar note in recent months, the remaining denominations will be circulated within the next year.

Guatemala has issued a 5 quetzal note in 2011 to follow the 1 quetzal note that was issued as a polymer note in 2007.

Chile started in 2009 by introducing their new 5000 peso note and have recently added the 2000 and 1000 peso note to the series.

Cost Rica has very recently redesigned the 2000 and 1000 colonnes notes of which the 1000 was developed in the polymer.

As more countries become advocates of the polymer notes, there are also advances being made in paper banknotes and it is now possible to make “hybrid notes” – paper notes with a transparent window. Tom Hockenhull, curator of the Modern Money exhibition at the British Museum, says that the security gap between paper and plastic notes is closing.

“Paper is much more secure than it used to be and the new British pound 50 note, for example, has features that are extremely hard to counterfeit.”

Meanwhile counterfeiters are making progress with polymer. “Polymer is very hard to counterfeit, but it hasn’t stopped people trying: good imitations do appear from time to time, “Mr. Hockenhull says.

The Fluctuation of Foreign Currency

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Taking a trip outside your country will certainly involve some changing of currency. Consequently, it may be a wonder why the various monetary values involved in transactions aren’t always the same. The per-unit value’s differences are often marginal, but with a substantial sum exchanged, the differential amount can also be significant. If you are lucky enough, the value of the foreign currency, say the euro, left over from a trip will have a better exchange rate when it is changed back to your home currency. You may even think that a considerable gain would have been made had a bigger amount of foreign currency was saved from that trip and eventually exchanged.

This perchance occurrence illustrates one of the mechanisms by which money traders can gain profits. What could be at play is simply the law of supply and demand wherein more people are in the market to buy euros while less is available in the currency exchange international trading. In certain cases, an artificial shortage of a currency is created by speculators to jack up the exchange rate. Monetary authorities, however, are always on the lookout for such market maneuverings and have installed measures to minimize such instances from happening.

Some governments, like the United States, directly intervene in the market in order to control undue fluctuations of money values. Besides direct buying and selling currencies in its coffers, among the measures that the U.S. Federal Reserve can take is boost the country’s money supply if so warranted. The Fed, which is the U.S. central bank, can also tighten money supply in order to influence the value of the dollar in the currency market.

There are many other factors that can affect foreign money supply and demand. The export or import performance of a certain country, for instance, will have an impact on the value of its currency. An excellent export record for a particular period of time can boost the value of that country’s currency. Conversely, if there is a serious trade imbalance, meaning that the country is importing substantially more than it is exporting to its trading partners, the value of its currency could depreciate.

The influx of foreign investments is also a determinant to the value of a country’s currency. With more investors coming in and converting their money into local currency, short-term money depreciation can result. Over the long-term though, countries which draw lots of foreign investors can achieve better exchange rates if and when the investments made turn into productive undertakings.

Travel Tips: How to Make the Most of Your Leftover Foreign Currency

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If you’ve ever come back from a trip with some foreign coins jangling in your pocket, you know that your choices are limited: Exchange at a bank, or throw them into a drawer until the next trip. But bank exchange seems like a hassle for what amounts to a few dollars, and if you’re like me, you’re lucky if you remember to pack socks, let alone a tiny bag full of forgotten coins.

Rather than render your hard-earned euros and yen worthless once you’re back on U.S. soil, here are some ways to get the most from them.

• Play Brewster’s Millions at the Airport

Flash back to the classic 1980s Richard Pryor film, and pretend your wealth depends on spending as much money as possible in a short amount of time. Of course, in the film, the budget was $30 million. You may be dealing with a few dollars. No reason not to have fun with it, though. I once spent a layover wandering around the Denpasar airport trying to find something that was exactly 100 rupiah (about $1 at the time). I bought a sticker, and boarded my plane with nary a rupiah in my pocket.

• Use It to Teach Youngsters a Geography Lesson

When my nephew was younger, we used to play “Where did Aunt Molly go?” with a map and my passport. Now, with my older nieces, we’re doing the same thing with currency. Kids love the different colors, designs, and sizes of various currencies, and it’s a fun way to teach them about different lands. And when they’re older, they can look back fondly on the euro from that trip you took this year, and say that that’s when they learned the meaning of a bank run.

• Say, “Gracias Por El Cafe.”

Grabbing a coffee or a sandwich for a flight that doesn’t include either? While many cultures don’t tip, airport restaurants and coffee shops always have tip jars out for the customers who are inclined to do so. Sadly, these jars are often empty. Drop a couple of coins in, and you’ll make someone’s day by the gesture, if not the amount.

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When will the Euro weaken?

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The Euro has been under huge pressure recently as a result of the debt crisis. Despite this the Euro remains very strong as a currency which often has clients asking us when will the Euro weaken?

This is normally in relation to the GBPEUR rate. With the well publicised nature of the debt crisis this is a good question to be asking. After all this time last year the rate was in the 1.20’s.. We are now a year later and the debt crisis has only got worse. Why are we still at 1.13-1.15 and not 1.20 or even 1.30?

Interest Rates – With the Eurozone offering investors a 1.5% return on their investment in the Euro, the currency is attractive to buy which keeps it strong. The higher a countries interest rate, the more investment it receives, and hence the stronger it grows. The raising of interest rates is a sign to the wider world that the Eurozone economy is expanding and can allow an interest rate hike. Compare this to the UK or USA who have 0.5% and 0-0.25% interest rates respectively. Looking specifically at the GBPEUR rate the sterling side is weak due to low interest rates. You only need to look at the weakness of the pound against most other currencies to understand why it is also weak against the Euro. The prospect of an interest rate hike is again being pushed into 2012 for the UK, and the Federal Reserve have said rates could be on hold until 2013! Can your currency transfer wait a year or even two in the hope things ‘might’ improve?

Germany – When investors look to the Euro they look at the whole economy and not just individual nations. So the poor state of the PIIGS, whilst a major concern is not the whole story. Despite some worse than expected GDP figures coming out today for Germany, Germany has a very healthy economy with very strong exports. The long term expectations are that this will continue. Contrast this to the UK with a Manufaturing and Industrial sector in decline, and a financial sector tarred by the global financial crisis.

Economic and Political Will – There is a massive political and economic will behind the Euro. The backdrop to the current arrangement is a long bloody history and the original idea behind the economic union was to prevent the countries going to war again. To get to where we are today has taken decades of negotiation and concensus which I cannot see being undone quickly. Whilst coming under immense pressure for not acting decisively enough, the Eurozone leaders also have provided the financial back up to deal with the crisis.

There are current questions over whether the bailout funds will manage Italy, hence the recent volatility, but the ECB have tools to dampen the volatility. Just last week they bought up €22bn worth of bonds, one of the reasons the GBPEUR rate has come back to 1.13. Today Merkel and Sarkozy are meeting in Paris and this could further help the Euro.

Despite the huge uncertainty in the market the Euro remains strong. Europe is the UK’s biggest trading partner and we have invested heavily in their debt. For better or for worse we are part of Europe. If you believe the Eurozone will collapse, or even hope that it will because you feel suddenly the GBPEUR rate will improve, I would advise caution. The collapse of the Eurozone or further major shocks will hurt the UK economy which is already under huge strain.

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Where Can I Exchange Foreign Currency?

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An item that will always be present in an international travelers’ checklist is a reminder to buy foreign currency, in particular, the money in use at the trip’s destination. This exercise appears simple enough; yet it can become complicated when the travel involves stops in several countries and each particular visit has a very tight schedule. It can be stressful, for instance, to allot time to buy Brazilian money while at the same time worrying about how much is the best conversion value for the Chinese Yuan.

Sure there are a lot of facilities where foreign money can be exchanged. But with the complexities involved in currency exchange, each mode often has an advantage over the other. Learning the particular features of each alternative will certainly enable a traveler to have the right mindset when exchanging money even just for a single trip.

Airport Terminals

Travelers in a rush will find money-changing kiosks or desks at international airports. Such facilities may even be available in plane terminals solely handling domestic flights. Hence, the main advantage of these money changers is convenience, particularly for travelers who have a strict schedule to keep. The money rates available, however, can be disadvantageous and set you back by about 20 percent of the exchanged amount. If you have the time, looking for a better rate should naturally be called for.

Banking Institutions

Currency exchange rates are typically better at local banks than those prevailing at airport money-changing facilities. Banks’ foreign money buying and selling rates are typically based on the previous day’s closing of foreign exchange trading. The banks’ limited days and hours of operations, however, can present a problem if you need to change money instantly. Banks also impose certain limits on the amount of money that can be changed by an individual.

Credit/Debit Cards

The currency exchange features of credit and debit cards are fastest modes available for travelers exchanging currencies. You will be benefited too of the competitive rates available at banks since most credit/debit cards were originated by banking institutions. Be wary though that the card you are using hasn’t been deactivated and that you are within your credit limit when transacting with this facility.

Automated Teller Machines

Exchanging currency via banks’ automated teller machines is also convenient. However, you have to check beforehand if using an ATM other than your bank’s machine carries with it certain fees that aren’t exorbitant. Be sure too that the area where the facility is located is safe and secure, especially if you are in an unfamiliar country.

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Where To Find Great US Currency Exchange Rates

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A diligent search for the best dollar currency rate facility offering the best US currency exchange rates on demand usually end up in Internet-based resources. Transacting business with these portals, that maintain a currency exchange convertor on their site and that have a proven track record in the forex trade, is not only fast and reliable. These online site update their currency exchange convertor algorithms daily and have a diversified line of services to offer that can suit every client’s money-changing needs. With this wide field of choice, exposure to currency risk fluctuations on US currency exchange is minimized dramatically if not totally eliminated.

In examining the kaleidoscope of alternatives among web-based money changers, the option should gravitate toward an online service provider which respects and values its clientele. At the same time, its organization has to be large enough and has installed measures to safeguard the integrity and security of each transaction. Likewise, its programs and processes have to be nimble and agile, enabling a vigilant tracking and monitoring of worldwide foreign exchange markets. This capability in turn ensures delivery of full customer satisfaction with offerings of the best dollar currency rate that could be obtained at any given point in time in the global market.

The better choice of an online moneychanger likewise should go to an innovative currency exchange convertor operator, which is constantly in search of ways and means that can further, improve or enhance its services. Besides this capability of moving their clients’ funds across borders at the best rates obtainable in the market, an ideal online currency exchange thus also extends optimal service by streamlining its engagement with the customers. The procedure in opening an account at its web portals is easy, just involving the filling out of user-friendly forms, unlike dealing in banks most of which require some thorough documentation.

The fact that a customer is under no obligation to use the account created online makes it even more attractive to conduct business with a reputable currency exchange operator that can get you the best dollar currency rate. Chances are slim though for an account to be inactive once opened because of the great advantages of having such a facility just within arms’ length of a customer at any time of night or day. The online clients are not only assured of instantaneous service. They can also expect the same products and services that banks usually extend only to their large corporate clients.

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Foreign Money Exchange: Your Options

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Most international travelers don’t want too much fuzz on exchanging currency. Many would even find it too taxing to browse online for websites with a currency exchange calculator. However, it would be wise to at least have an idea of current rates of foreign exchange as this can help a lot in choosing from various money-changing facilities where the deal could be more advantageous. There’s not much ado, anyway, checking daily forex rates which are often based on US currency exchange. What could be a little trickier is selecting the money-changing mode right to one’s needs or requirements. This exercise will involve a consideration of the pros and cons of the following:

Banks/ATMs

The best currency exchange rate deals offered are traditionally found in banking institutions, particularly at commercial banks. These companies typically have their own forex department which manages currency exchange matters. They have developed the capability to secure advantageous market rates, a function that is needed to expand a bank’s clientele. As advantageous, banks also maintain automated teller machines which can facilitate changing currencies. It follows, of course, that time already has been spent at opening a bank account which necessarily has several procedures to follow and minimum deposits required.

Hotels

Among the corollary services that major hotels offer is money changing, although the best currency exchange rates are unlikely to be obtained here. Some extra service, such as a concierge running a currency exchange calculator for a hotel guest, can be one winning point at changing money in such places as the Ritz or the Hilton. Many hotels’ reception desks also usually post forex values that are often expressed versus US currency exchange. This can make it easy to compare forex rates at various hotels to determine the best values that could be obtained. Convenient though it may be, changing currencies at hotels should be a choice only in hurried situations that international travelers are wont to encounter.

Exchange Desks/Kiosks

There was a time when money changers operating at kiosks or desks are the most convenient way for currency exchange. Often, these facilities can be found in airports or in shopping malls. The money exchange rates offered at these desks and kiosks, however, are very unlikely to be superior than those available in banks and ATMs. The economies of scale work to the disadvantage of these money changers which have limited resources compared to the big banking institutions. The kiosks are alternatives that come in handy only during non-banking hours/days.

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