Author Archives: Xchange Of America

Things To Watch out for When Handling Foreign Currency

Before departing for a trip – be it for business or pleasure – to another country, it’d be extremely helpful to have certain amounts of the nation’s local currency on person. The option to buy foreign currency online is one of the most convenient ways to satisfy this need, as reputable exchangers can have the money sent to their customers’ doorsteps within 24 to 48 hours.

Although rare, there are instances where handling holiday money can actually inconvenience the vacationer during their breaks abroad, regardless of whether the tourist decides to carry cash or card. For instance, travelers usually carry two currencies – or even more –while traveling abroad.

Despite trying to keep the currency notes separated from one another, the coins can sometimes get mixed up, which can cause a little distress when paying for public transport. Attempting to pay the typical British bus driver in foreign coin – be it intentional or unintentional – may prompt the guy or girl to immediately kick the commuter off the bus.

Nevertheless, this potential setback can easily be negated by using color-coded wallets. To be extra safe, using wallets with colors that more or less match the flag colors or bear symbols of the country’s flag would definitely be helpful.

Second problem stems from the use of ATM cards – upon reaching the airport, there’s always that moment of hesitation and anxiety that sinks in upon inserting the card into the machine. Although uncommon, there’s still a small chance wherein the money dispenser fails to spit any cash out, or even fails to release the card completely.

This scenario is either psychologically or literally worse in a foreign country, as the thought of being without local currency for an undetermined span of time can be daunting.

Third and last potential money-related problem is not having enough change to tip concierges, waiters, and other hospitality employees. There’s a wide range of establishments within various tourist destinations wherein giving a tip is an absolute must, or neglecting to do so would be rude.

All three issues may not be that too big of a deal, but they sure can lead to feelings of discomfort. Saving face and avoiding awkward situations is an issue which can be addressed by simply opting to buy foreign currency online, and have the notes delivered in both large and small denominations.

Understanding How Currency Exchange Transactions Work

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When it comes to exchanging your country’s currency to another currency then the foreign currency exchange rates become important. Example is when you’re planning to visit Britain. While in Britain you have to shop or pay using Euro or British Pounds. To exchange your country’s currency for either Euro or Pounds, you need to visit a bank. The banks will convert your currency to the currency you want to have using the updated rate. The currency rate however keeps fluctuating so you are more likely to receive different amounts at various times.

The rate fluctuation is advantageous to currency traders who buy and sell currencies to earn profits. In some instances, retail customers participate in currency exchange markets as well as speculators, hoping to earn profits as currency values fluctuate.

In basic economics, increase in the supply equates to decrease in the price of the goods. Therefore, if your country has increased currency supply, you need more of this currency to be able to buy other currencies. This simply means that the currency with increased supply is devalued. In the foreign currency exchange market, the price and quantity of the currencies will continue to fluctuate. Currency supply in the market is affected by various factors.

The factors that affect the exchange market include speculators, foreign investors, export companies, and the central banks.

Foreign investors: This procedure includes currency exchange. A foreigner with plans to invest or do business in your country needs to convert his currency to the local currency before he can start making investments. This will increase his country’s currency supply thus depreciating its value in the exchange market. On the other hand, your country’s currency supply will decrease thus appreciating its value.

Export Companies: Example for this is a US-based export company distributing its goods and products to a company located in France. The US company will receive money from France for the products however the money will be of no use in the US so the currency must be exchanged. The US export company needs to sell the Euros received from France in the exchange market. This transaction will increase the Euro supply and decrease the dollar supply. In this situation, the value of dollar will appreciate but the value of the Euro currency will depreciate.

Speculators and Central banks: The exchange markets have a lot of speculators that are driven by the currency’s fluctuating movement in the global market. The US Central Bank, Federal Reserve, is the one that controls the country’s currency supply. To increase the country’s money supply, additional dollar bills will be printed by Federal Reserve. Central banks keep lots of currencies in reserve to influence the exchange market when needed.

How to Get The Best Deal on Currency Exchange

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In terms of money, you can do a lot of things to keep yours in the bank or wallet instead of having the rip-off greedy merchants get a hold of it. Such is the case when you go for a holiday vacation.

Rip-offs on currency exchange are known to be perfectly legal and notorious, although a number of groups have been continuously trying but usually failing to stop this prevalent abuse. In some instances, we are aware that we are being manipulated in some areas in our lives but are unable to do anything about it. However when it comes to currency exchange, there are several definite precautions that we can observe, which include the following:

1. Shop Around

Similar to shopping around for insurance lands whenever renewal notices are given, looking for establishments that offer excellent currency rates is also necessary. There are a number of online providers with better offers that can even provide next-day deliveries without extra charge. You can also shop around the high street areas and inquire at the banks, post offices, travel agents, and building societies. Your best option would probably be the Post Office.

2. Avoid the Airport

A lot of vacation-goers still do currency exchange at the airports, which is really surprising considering that rates at the airports are way below the standard exchange rates. Large amount of money are wasted every year by people who are either lazy or ignorant, choosing to exchange their currencies at the airports where they end up paying more. Even if the vacation has been decided at the last minute, ordering currency online hours before the flight with airport pick-up arrangement should have been the right approach.

3. Additional Charges

When doing currency exchange, most people still commit mistakes by excluding the various fees and charges in the calculations. Do not just look at the exchange rate alone, include the charges as well. Remember to read the tiny print as well.

4. Use Prepaid Cards

During vacation, the use of credit cards is not advisable. Instead you can use prepaid cards, which offer excellent rates on a frequent basis. Prepaid cards also put a limit on how much you can spend. With credit cards, people can overspend sometimes. Prior to the start of your vacation, you can prepare your budget and have it deposited in your prepaid account. The fixed amount in your prepaid card will let you spend according to your budget.

5. Pre-purchase

Purchasing currency weeks before your scheduled vacation can help you get a reasonable rate compared to doing the purchase hours before the flight. Leaving this task until the last minute is a big no-no since you will have no other option except to buy using the certain rate provided. Talk to an expert and ask for tips regarding the best time to purchase and sell currencies and what things to look out for prior to any transaction.

Stretching Your Money’s Worth for Your Travel Money

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National Sales Director and independent currency specialist, Mark Rowlands reveals his tips to save cash on holiday money. He shares practical ways to stretch your hard earned cash.

Planning
Better things happen when you plan ahead. If you wait the last minute to purchase currency you may miss out on some good deals. There are some great deals that you can get online but you need to allow time for your payment to go through before your currency gets delivered at your doorstep.

Online Shopping
You can go from one Travel Agent to another or from one supermarket to another but why bother going out of the house when you can get better deals at the comfort of your home. Purchasing your currency online will save you time, and gas money and besides some of the best deals are in the internet.

Hidden Charges hiding behind “Free Delivery”
Believe it or not but sometimes “free” sometimes have a hidden “fee.” Really look into exactly how much you need to pay and how much currency you will be receiving. There’s really no point in saving five pounds in delivery if it will cost you twenty pounds worth of your currency.

Saturday Delivery good or bad?
More often than not, Saturday deliveries get an extra charge. If you’ll be at work during the delivery date of your currency you can arrange for it to be delivered at your workplace but make sure that you have a safe place to stash your travel money.

Pool your resources with family and friends
If you are traveling with other family members or friends then it’s better to pool your resources together and purchase your currency in bulk. This way you will have higher buying power. People are always happier to transact business with you if it involves bigger amounts.

Be a smart negotiator
If you were able to see a good deal online and was offered something unacceptable try to ask for a price match but if they can’t give you a better deal simply turn your back and walk away.

Getting the Best Currency Exchange Rate on Holiday

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Sometimes bargains are not really good deals once you get to see the “other” fees that come with it. If one is not cautious enough in checking out these extra fees then you may actually be paying more than what you bargained for. Choosing the Holidays to take your vacations is a great way to spend quality time with your loved ones but there are ways to save more during these vacations;

Mobile Phones
Internet access over your phone while overseas can amount to a small fortune. You will be one of those customers who might be in shock once you receive your expensive bill. Before leaving call your provider and let them know that you are travelling and ask if they have some special offers. Or you could ask them to simply turn off data roaming so you won’t be tempted to use the data that’s included on your phone. Or if you’re the adventurous type who can survive without using your mobile then by all means keep it tucked away during your trip and use it sparingly.

Exchange rates
It is not advisable to exchange your currency at the airport because you’ll get charged with a lot of fees. Try to do it before you leave or look for a currency exchange bureau that would give you a good deal. There are a lot of websites that you can look up and you could even compare rates. Do your transactions online and just wait for your currencies to arrive at your doorstep.

Credit Card
If you use your credit card overseas you may get a charged with up to 3% of your purchase. So look for a card that doesn’t charge fees for your trips abroad. A prepaid currency card will be even better because it protects you from exchange rate fluctuations. It’s stapled on a fixed exchange rate so you are protected from the sudden highs and lows of the exchange rate market. Also avoid using your debit card because you get charged with higher fees every time you use them.

Four Tips On Saving Money While On A Long Vacation

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Lots of people travel to visit family, a special someone, or personal pleasure. Whatever reason an individual may have for hopping on a plane and flying across the globe, saving money would definitely be a big priority for any travelers. With that said, the first and most important tip to keep in mind before going to a far-away country is to keep an eye on foreign currency exchange updates.

Currency exchange of one country to another has the tendency to vary abruptly. Anyone from any nation would certainly want to exchange his cash for the target country’s currency when the value of his money is high, and never when it’s the opposite. Doing so will help the vacationist get a longer stretch for every buck he has, thereby allowing him to save even more money.

Second tip (as well as the succeeding tips) applies to those who have their own houses overseas – conserve energy by utilizing energy-efficient appliances. While it’ll cost a semi-high amount of money to acquire such merchandise, these goods will eventually pay for themselves with the amounts of dough saved from every electric bill. One such item that’d really help cut-down on costs is the slow cooker, which also makes meals taste much better.

Third tip is to sell unnecessary gift cards. While many people stumble upon these special items all the time, most are typically for stores they don’t shop at, in turn prompting them to toss the goods away. However, doing so would be a complete waste of money, as there are several websites that are actually willing to buy these cards for up to 90 percent of its total value.

Fourth tip is for those with homes equipped with telecom services – people who travel frequently and constantly make long distance calls back home will find themselves with a large financial burden coming in the form of large phone bills. Even if an individual is charged in lower currency, these bills can amount to substantial amounts after applying the foreign currency exchange formula to the figures.

That being said, availing special telecom package deals could help frequent travelers and callers save substantial amounts of money.

To sum things up, all a traveler has to do to cut-back on expenses when travelling abroad is change his notes when currency exchange is in his favor, utilize energy-efficient appliances, sell unwanted gift cards, and avail telecom package deals.

Searching for the Best Currency Exchange Rates

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Currency rates fluctuate from time to time. Such phenomenon can be observed during the tourist season when vacationers return home and bring with them various currencies.

During such times, banks can show interests in buying specific currencies and selling them, possibly, for higher prices.

However, if you are thinking of gaining more from the currency you have, then you have to wait or search for the best exchange rates.

The various places offering currency exchange can establish different rates for currency exchange. Usually, exchange offices and banks lead the combat for their clients. In a stable market situation, their rates many vary within the hundredth parts of a penny. However in an unstable market situation, the competition becomes even more serious.

If you’re trying to observe the best exchange rates, you need to concentrate on the difference between the purchasing and selling rates, which is called margin. The margin is usually slight; however it can extend and reach significant numbers during crisis, which only proves that financiers are unsure of what tomorrow brings. Following the rule, purchase rates are low while selling rates are overrated. If there is price increase, financiers will have their currency stock. If the prices fall, businessmen are not on the losing end either.

These are excellent currency rates for individuals who are into selling and purchasing currencies.

Exchange offices and banks have their own special interbank rate when selling and purchasing currencies, which benefits them a lot. However they prefer not to mention this when advertising the services they offer and continue to purchase and sell currency with extra charges.

You should bear in mind that when traveling somewhere and you think that you might have a few currencies with you when you return home, you can visit a travel agency and take advantage of the “buy back rate”. The agency will buy the currency you still have without you having to search for an exchange office or bank that provides excellent rates. However you should remember that currency exchange establishments do not have an obligation to process currency coins. Most probably, you will be advised to leave the coins for keepsake. Oftentimes, banks indicate in their regulation that coins are not accepted and are given out during special financial transactions.

However, between an exchange office and a bank, both with worse exchange rates, choosing the bank would be more reasonable. It is less likely that you will be deceived or provided invalid or false bank notes at the banks.

Always remember to choose establishments that are more respectable to be able to receive the best exchange rates for your currency.

Choose a Prepaid Currency Card for an Easier Vacation

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If you’re planning your trip out of the country you need to bring your luggage, passport, and of course the currency of the country you’re visiting. Planning your vacation includes planning your budget. That’s the tricky part. Currency exchange rates all over the world are not very stable. You may think you have enough for your vacation but you didn’t consider the fluctuation rate chances are you may end up with less cash than you planned to bring on your trip.

Nowadays, travelers are experiencing sudden changes in exchange rates, which they didn’t expect. They are shocked to find themselves with very expensive purchases. So they find ways on how to maximize their trip and get the best arrangements for accommodation. Sometimes what slips their mind is the basic and most important detail of their trip; how will they pay in that country?

Using credit cards abroad is easy but they will be expensive to use overseas, most especially if you use it to get some cash. This is not recommended for traveler because doing this will expose you to burglary and theft.

So why is a currency card preferred than a credit card or a traveler’s cheque? Both are good options however they are expensive options. On the other hand, a currency card is a prepaid card that is fixed on its exchange rate. This way you wouldn’t have to worry about exchange rates plus you’ll also be protected from fluctuations. These cards are released by Maestro, MasterCard, and Visa. It’s the only payment tool you’ll need in a foreign country. It works as a debit card and ATM card. You can swipe it like your regular credit card and earn points just like your regular credit card.

Another great feature of a prepaid currency card is that it can help you stick to your budget. You will only be allowed to spend the amount that you pre-loaded. But you can always add more any time all you need is a phone and an internet.

New Tourism Group Slams Currency Exchange Rate At Juan Santamaría Airport

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Upon arriving at a new country, many travelers opt to exchange money at the airport’s designated currency changer outlet, and then head off to wherever it is they’re going. While it’s no secret that businesses at airports typically make minor adjustments to the currency exchange rate they display on televisions throughout the establishments, a new tourism group feels that Global Exchange at Juan Santamaría Airport has driven the prices up too high.

This new Costa Rica-based organization known as Asociation para las Protección del Turismo posted a receipt on their Facebook page just to show how much the money changer was really taking from tourists. The receipt, which belongs to Joe Allan Stokes, states that the unsuspecting tourist received 444 colons per every US dollar he changed, while the actual exchange rate on the exact same day should have been 492.5 colons per buck.

Stokes had over $600 exchanged at the airport, and received 266,402 colons in return. But if the correct figures were used during the computation process, this holidaymaker should have gotten 295,500 colons for his six-hundred dollars, which basically amounts to 29,098 colons — or $56 — shaved off during the conversion process.

The new group which pointed out this currency exchange rate pitfall uses it as a perfect example of why vacationists should be wary when opting to exchange money at just any dealer. Moreover, the business’s unfair quotations are what prompted the organization to label the money changer as a “government-sponsored robbery targeting tourists.”

Ironically, Global Exchange’s online welcome page states the following in its lower left corner: “leading company in Foreign Exchange Services at main International Airports of Latin America and the Caribbean, and we are growing exponentially in Europe, North of Africa and the Middle East.”

With all that said, it’s important for anyone traveling outside the country to take all necessary steps to ensure they get the most out of every buck they change. There are many ways for folks to do this, such as getting their cash converted into the destination country’s local notes before they actually take off. While the currency exchange rate will differ from changer to changer, it’ll most likely be a whole lot better than that which was offered to Stokes at the Juan Santamaría Airport.

Reputable online currency changers are becoming a preferred option to exchange money amongst frequent flyers, as they offer substantially more competitive rates than traditional brick-and-mortar businesses do.

Sending Money Abroad With Foreign Currency Exchange Rates In Mind

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Different countries utilize various monetary currencies. Thus, if you are thinking of traveling to another country, you need to include the country’s currency in your list of things to have. To make this possible, you have to exchange your country’s currency with the monetary currency of the country you plan to go to. This exchange of money is normally referred to as forex. Individuals and establishments that offer such service charge a minimal fee for the transaction.

Foreign exchange however is not associated with the currency exchange, which includes other services such as wire transfer of money to another country. Currency conversion is also involved when doing wire transfer. These transactions are governed by several regulations and laws.

For a number of travelers, bringing cash while traveling is not safe. Thus most travelers bring traveler’s check, which they can exchange for cash when there is a need to use cash. This type of service is supported by the foreign monetary exchange. Individuals who exchange currencies also liquefy and issue traveler’s checks in various currencies. One great advantage of having traveler’s check is being able to replace it with ease once lost.

A standard exchange rate must be adhered by individuals involved in the transaction. The rate is the number of the units that a currency can be exchanged for with the other currencies. The rate is not fixed. It fluctuates several times depending on various factors such as the demand for the particular currency and the currency’s purchasing power. The factors affect the worth of the currency in the international market. A number of non-financial factors such as political situations and government policies also influence the currency rate.

Understanding the fact that such transactions are not charged using the prevailing rates all the time is necessary. Usually, exchange services are done using lower rates and the fee charged by the exchangers. Thus, a lot of people compare various exchangers prior to making transactions. Minor differences among exchangers can be significant, especially if the transactions involve large amounts.

Daily newspapers usually print the exchange rates, which can be found in the newspaper’s finance section. However the rates may have already changed as soon as the newspapers hit the stand. People dealing with currencies are better at monitoring the exchange rates. In several countries, small-time money changers offer such services. It is essential for travelers to deal with accredited currency exchange establishments when making the transactions.