Tag Archives: currency exchange rates

Timing Your Currency Purchase for When There is a Favorable Currency Exchange Rate

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Did you know that you can save money on your currency exchange by timing your purchase for when there is a favorable currency exchange rate? The exchange rate fluctuates on a regular basis due to a wide range of different factors. Xchange of America updates their exchange rate based on these fluctuations and other criteria. On a particular day when the U.S. dollar is strong against the currency that you are trying to purchase, you can save money on your purchase by buying your currency that day. Once you lock in your price you are good to go, even in the exchange rate changes the next day.

You can ask Xchange of America for advice

Xchange of America offers advice on how to do this, as it can be a bit confusing even for those with experience. You will need to visit the website or contact them for information on exchange rates. You can even be notified on a particular day when the exchange rate is strong, which can save you the trouble of having to figure it out yourself. Anytime you need to buy currency for a trip or for another purpose, it is a good idea to try to follow the exchange rates that are posted on Xchange of America, or as previously mentioned you can get a notification as soon as the exchange rate is preferable.

You can save a substantial amount

Although it may seem like too much effort, the reality is that you can save quite a lot on your currency purchase just by making it at the right time. It becomes even more important if you plan on making a bigger currency purchase, for the purpose of investing or if you plan on traveling abroad for an extended period of time. You don’t want to have to buy currency after you have traveled because it can be a major hassle and you might not get the same fair rates as you would from a reputable online provider like Xchange of America. The amount that you can save on a favorable day can quickly add up when you buy large quantities.

Give yourself time

Be sure that you give yourself enough time to make a purchase on a day when the exchange rate is favorable so that you can have your currency delivered to you when you need it. You can call Xchange of America now at (888) 796-2962 to talk about preparing for your currency purchase. It just may be that there is a favorable exchange rate today, and if that’s the case you will definitely want to lock your price. However, if it isn’t, a currency expert will let you know. Bear in mind that that there is no guarantee that the exchange rate won’t drastically change on any given day, and that any advice given to you is only to help you make your own decision. You will need to do some research as well, but we are happy to help. Give us a call today at (888) 796-2962 or if you are ready feel free to order online now!

The Money You Carry: The Ups and Downs

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No matter what kind of travel packer you are, there are a few things that every single person should take with them when they are away from home, especially when going out of country – toothbrush, comfy underwear, a good book, etc. But the one thing that, no matter where you are going, you should always bring with you is the obvious one: money. But it is the twenty-first century and most of the modern world has a variety of options when it comes to carrying money around.

Although lots of people worry about the money they might lose because of the currency exchange rate, cash should always be the foundation of your travelling funds. Local money is good to have on you to pay for things quickly and to buy things from places that don’t accept credit cards. In some areas of the world, currency varies so often that many places accept American money as is.

ATM cards and/or debit cards are usually a positive thing to have on your person as they carry a double function – a method of paying electronically as well as being a method of getting you cash. ATMs are abundant just about everywhere in the developed world so getting cash is not usually a problem. The biggest issue with debit cards and the like is that, no matter how much like credit cards they are, they same kinds of protection don’t apply. If you report fraudulent charges with in two days there is only a $50 fee… but if you wait longer than that the charge can be as much as $500; according to the Federal Trade Commission, if you wait more than 60 days, the amount of money you are liable for is almost unlimited.

As with most things that involve money nowadays, credit card is the preferred method of payment just about anywhere you go. Unless you happen to be wandering through a rural area or a village that isn’t technologically equipped, credit cards is almost as safe a bet as cold hard cash. With the amazing fraud charges protection and the zero liability, you can go anywhere and do pretty much anything and never have to worry about anyone snaking your card numbers; even if you do find a thief has charged money to your card, the most you are liable for is a whopping $50. Since they are more widely used overseas, try to get a chip-enabled card. The only thing you have to worry about it the 3-5% surcharge for foreign transaction – with larger purchases those percentages can add up, so choose wisely.

Whichever payment methods you choose to bring or not bring with you on your trip always be careful and wary – foreigners are always easy targets for theft. Before you leave, call both your banks and your credit card companies and let them know your destination, your departure date, and your arrival home date; if nothing else, it will let them know that there isn’t so crazy person who has snatched your credit or debit card and is flying around the world, racking up exorbitant charges. To avoid getting ripped off by savvy locals looking for a quick buck, try find an online service with a good currency exchange rate, like http://www.xchangeofamerica.com/ , to get your cash before you go.

Keeping Your Cash Out of Sight

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People who travel have a lot to worry about when it comes to their money, whether they are worrying about the currency exchange rates or how many credit cards they can travel with safely and comfortably. While those who have a bright view of humanity in general probably don’t worry about it, theft is and always should be one of the paramount concerns of a person traveling with any amount of money. There are plenty of places you can store your cash that you think would be safe but in fact are the first places thieves look. Here are a few hiding spot ideas for anyone who is looking for a little something extra when it comes to being the one and only person aware of your money’s location.

• On Your Person – Everyone knows that investing in a money belt is a no brainer, but there are plenty of other places on your body you might never have thought of to stash your cash. You might try sticking a few bills inside your sock or in your shoe if your not wearing sandals. And for ladies who aren’t shy, the inside of a bra is also a discreet hiding spot. Many jackets, pants, and skirts nowadays also come equipped with hidden and/or interior pockets too. Before you go to buy anything and need cash from one of your hiding spots, just visit the bathroom and no one will see your secret stash. Never put your wallet in your back pocket.
• The Rental Car – If you have sprung for a rental car to avoid shelling out for buses, trains, and taxis, there is a small goldmine of sneaky places to inconspicuously store bills. Obtain a roll of tape and you are instantly able to hide money under the floor mats and underneath the seats. If you can take the time to clean out an old oil carton or can, either is a perfect little hiding spot. For the particularly crafty, look for parts inside the car that can be removed with a screwdriver and are big enough to hold a few bills in a plastic bag.
• In Your Hotel – So many hotel room safes are sketchy at best as so many staff members have the code for custodial purposes. If you are not staying somewhere where there is a safe that lets you decide your own code, there are some great stealth options available. If you have some plastic bags on hand, try stashing some money inside the toilet tank or inside a liquid soap bottle. If you can find a screwdriver or pack one with you, phone covers and old TV backings can easily be removed and replaced for a subtle spot. Some less complex places include inside the shower curtain rod and inside cushions with zippered covers.

When you are out and about with your money, only ever take what you need and no more – it is one of the easiest ways to compromise your finances. It is always good to keep both American and local currency with you when you travel, so if you are looking for a company with a good currency exchange rate, visit http://www.xchangeofamerica.com/ today.

Understanding Currency Exchange Rates

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If you are a savvy international traveler, one who has read up on all the things you are supposed to do and not do when you go to a foreign country, then you have probably already heard that making sure you buy foreign currency before your trip is one of the best ways you can prevent money loss and travel stress.

While it is often as easy as paying for the correct currency and having it delivered to your door, it is also important to understand the process of currency exchange as best you can so you can make sure you are getting yourself the best rates possible. Below is a list of info that will hopefully give you the best experience when you go to buy foreign currency.

1. When you see the term “sell rate,” this is referring to the rate at which the foreign currency is being sold. As with most things involving money, the rate at which currency is sold depends upon the demand or lack thereof – determined by things like economic success or inflation – and concordantly the appreciation or depreciation for the currency needed.
2. Parallel to the sell rate is the “buy rate,” which is the rate at which an exchange service will buy foreign currency back from you.
3. When shopping for a currency exchanger, it is important to not confuse the “spot rate” for your sell or “buy rates. Sometimes called the “interbank rate,” this is the rate banks charge each other when money is traded or exchanged in significant amount between them. As a tourist, you will not be able to buy currency at this rate. It is simpler to think of the “spot rate” as a wholesale price and the sell/buy rate as the retail price.
4. Should you come across the term “spread,” it will likely be in reference to the difference between the buy and sell rates. For example: Jack is going to France and buys €5,000 for $7,000. Jill comes home from France and sells the €5,000 she has and receives $6,500. That would make the “spread” $500.
5. Unless you are a wayward wanderer, then you probably won’t need to know what a cross rate is, but it is still good to know the term to avoid confusion. The “cross rate” is the exchange rate between two currencies when neither are the official currency of the current country such as if you wanted to change dollars for yen while travelling in Brazil.
6. “Commission” is an important term to keep a look out for whenever you use an exchange service. This is the term used for the fee that services charge for providing an exchange, which Exchange of America never charges you.

Buying foreign currency can be confusing for anyone, whether you happen to be familiar with the nature of exchange rates or you find anything to do with money and math as something to avoid at all costs. But there are plenty of online services that make the process much smoother for their customers. Check out http://www.xchangeofamerica.com/ to find out more.

More Key Factors that Influence Currency Exchange Rates

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Currency exchange rates are influenced by a wide range of factors that can cause dramatic shifts in the value of a particular currency. One primary example is the recent effect that Brexit had on the British pound. The pound dropped to values that haven’t been since in over 30 years after the news of Brexit occurred, and both global and local markets in the UK felt the impact as well. The effect that this had on the value of the pound had much to do with perception and a loss in investor confidence more than anything else, but perception is precisely one of the major factors that influence a currency exchange rate for a particular country.

Investor confidence can be quickly lost or gained

A country’s political and economic stability have a dramatic impact on the currency exchange rate for its particular currency. As it was seen with the recent Brexit vote, the political and economic turmoil that occurred in the days afterward had a dramatic impact on the value of the pound, which dropped significantly, and one reason this occurred was a loss of investor confidence in UK stocks and the pound. Investors sold shares in large quantities, and it’s estimated that the resulting share selloff cost stockholders trillions of dollars, and simultaneously the value of the pound significantly shifted.

Other factors that influence a currency exchange rate

Some of the other factors that have been previously mentioned on this blog include government debt, recessions or economic booms, interest rates, a country’s balance of payments, terms of trade and many others. When countries go through recessions, their currencies often weaken as their chances to acquire foreign capital diminish. The terms of trade of a country include the ratio of export prices to import prices. The terms of trade of a country improve of its export prices rise faster than its import prices, and that can have a positive effect on a particular currency. Also, countries with a large amount of debt may not be able to acquire foreign capital as easily and as a result their currency may decline in value.

A lower currency exchange rate is not always bad

Although a lower currency exchange rate for a particular country may seem like it’s always a bad thing, this is not necessarily true. When a country’s currency exchange rate drops, it can be bad for citizens of that country in terms of traveling to another country. Their purchasing power declines, and they aren’t able to buy as many goods and services as they used to. However, it makes traveling to that particular country more attractive for tourists from other countries, as their local currencies become stronger. This can increase tourism to a particular area, and it can also make a country’s exports more attractive to foreign buyers, all of which can have a net positive long term effect on a particular economy. However, if a currency drops too low, it can have dramatic effects on the lives of the residents of a particular country, as their purchasing power to buy local goods can also diminish.

 

 

Figure Out the Currency Exchange Rate

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One of the most interesting economic lessons in life occurs when you travel internationally. Americans are so used to using the dollar they hardly realize that other countries have their own type of currency. Therefore, when you travel and stay somewhere other than the United States you have to use the money for that country. For example, in Britain it’s the pound and across Europe it’s the euro. When money is changed there is not always an ‘even-up’ scenario where one dollar is the same as an equal amount of the currency of the country of destination.

The cost of changing money from one country to another is called the exchange rate and these fluctuate constantly from day to day and week to week. That is because ‘exchange’ is traded on the open market and as a result the price of this currency can go up or down just like stocks or gold.

One quick lesson in exchange may occur when you cross the border into Canada or Mexico. Then you will see how ‘far your dollar goes’ when you buy or exchange your American dollar for a Canadian dollar or peso. Too, the exchange rate you receive on the market may be different than what you are offered at – perhaps – a bank. It behooves the exchanger to determine if they are getting a fair exchange. There is a way to decide this with just a little research.

The ‘currency-savvy’ are well aware that money is being bought and sold everyday by institutions and traders. It’s not rocket science, it’s a simple trade of one currency for another. Say, for example, you wanted to buy British Pounds or GBP, you would need to use another form of currency to do so. And that doesn’t mean you have to use the American dollar. Traders exchange all types of currency from all over the world so any currency is a legitimate option for exchange. Now, whatever currency is being used to buy another – together these form a ‘currency pair’. For example, if American dollars are used to buy the Canadian dollar the exchange rate would read like this: “USD/CAD pair”.

Now, if the exchange rate for this pair is perhaps 1.0888 that means that it would cost 1.0888 Canadian dollars to buy 1 United States dollars. If you look at the way the pair is written the first currency listed is meant to represent a single unit of that currency – in this case the dollar. When written out the second currency is the exchange rate or amount that is needed to buy one unit of the first currency. The formula is basic math – ‘1/exchange rate’.

For this pair the equation is 1/1.0888 = 0.91844 or in order to buy one Canadian dollar you only need less than one American dollar to make the exchange. When the exchange is made the position of the currencies is then switched – so it would read “CAD/USD”.

To learn more about currency exchanges contact Xchange of America today at 1-888-7-XOA-XOA.

 

 

 

Learning About Currency Exchange Rates

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When you want to exchange your American currency for another because you may be planning to travel outside the country you will usually go to a bank and get a currency exchange rate when they convert the money for you. Because the amount of the exchange is small, and you are an individual, it is unlikely you will get the same price as a trader who is making the exchange on the market. Instead, expect that the bank or currency exchange house will charge you more for the exchange. In other words they will mark up the price of the money for which you are changing. This allows them to make a profit. Expect the same treatment when you use credit cards in another country or even such companies as PayPal, a payment service provider, if you turn to them for a currency exchange.

In a previous blog we used a hypothetical example that claimed the “USD/CAD pair” was 1/1.0888 which results in the currency exchange rate being “0.91844/1” when the money is changed. However, it is very likely that the cost to buy one Canadian dollar could be perhaps as much as 1.1. The difference between the currency exchange rate and the market exchange rate is what the bank takes in in profit. There is a formula for figuring this as well. Simply subtract the two exchange rates and divide the amount by the market exchange rate – then multiple by 100.

The foreign exchange market – forex or FX – is a highly volatile and constantly changing market in which to trade. For the inexperienced trader you should know that it only takes a second to lose money. The forex is also an excellent choice for the market-savvy who understand currency trends and follow them. There is no question that currency exchange rates do follow patterns that can last days, weeks or even years, and when you know how these patterns who you can benefit from buying currency at particular times.

The FX is actually the largest market in the world in terms of volume of exchange. However, at this level the ‘players’ are generally international banks and financial centers. It is important to note that the forex or foreign exchange market is not responsible for setting or determining the value of different currencies. It only sets the market price as it currently appears when the value of one currency is demanded against another.

There are a few other points of interest for a trader to know about currency exchange rate and conversion. It is estimated that upwards of 5 trillion dollars a day occur on forex. The spread among trading institutions is generally quite tight – otherwise no money could be made. Even when banks quote the exchange rates for their best clients the corporations requesting the exchange should not expect anything more than narrow spreads. Customers who are going to travel abroad and want to exchange their money should know this in advance.

When is the Best Time to Have Currency Exchanged?

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Traveling to another country can be a fun and stress free adventure when you plan everything out ahead of time. When it comes to planning the things that you need for your trip, it isn’t enough just to purchase your plane tickets, book your accommodations, and buy clothing or other items.

You also need to have the right amount of local currency which will allow you to buy food and other necessities that can only be paid for in cash when you’re traveling abroad. Looking at the currency exchange rate ahead of time will allow you to know exactly how much you need to spend in order to buy currency.

If you check the currency exchange rate ahead of time you’ll also have the chance to purchase it prior to traveling. Some of the requirements of your trip may have been paid through your credit card so you won’t need to worry about that anymore but for your pocket money it’s essential to have some cash.

Buying Foreign Currency Ahead of Time

It’s a good idea to check the currency exchange rate as soon as you can before your actual trip to determine when the right time to buy currency is. You may not think that this is necessary but when you do this, you will have the opportunity to purchase currency when the rates are good.

Xchange of America can help you determine the best time to buy

It can be a bit hard to check on foreign currency rates when you do not have enough time to focus on other things aside from your job and daily requirements. When you buy foreign currency from Xchange of America, you can rest assured that the staff members will be more than willing to help you determine when the best time to purchase it is.

Also, when you buy currency from Xchange of America, you can also receive the cash right at your own doorstep. Of course, you can also go to one of our local stores for currency exchange. The most important thing is you do not have to pay any service fees in the process. This the main difference from us and other currency exchange services.

Know How Much Money You Need

Just how much money do you actually need for your trip? If you are going to purchase food and transportation for the whole duration of your stay, how much do you think you will spend?

It’s a good idea to calculate it that first and wait for the best currency exchange rate at Xchange of America so you can only exchange what you need. If you want to exchange extra money, it’s a good idea to do this as well because you might see something that you can’t miss buying.

Get Accurate Advice from Xchange of America

You have to remember that when it comes to purchasing the right amount of money that you need for your trip, you may not be able to accomplish it on your own without guidance. It’s a good idea to ask for tips and recommendations regarding the currency exchange rate from Xchange of America. We are more than willing to give you the help that you need.

 

 

How To Track Foreign Currency Values

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With the increasing globalization of business and industry, currency exchange has gone beyond the limits of forex trading. More and more trade barriers across countries have been lifted, resulting in more products crossing borders and sold in various currencies. Converting sales and profits into another currency has become an exercise for many companies, actions that can have a profound effect on the financial markets. The surplus cash that some of these companies have are often channeled to financial instruments that are tied or indexed to fluctuations in currency exchange international trading. Entry or withdrawal of company investors in the financial markets thus can have an effect on the value of certain currencies.

The continual change in rates of exchange among currencies likewise reflects the shifting strengths and weaknesses of the currencies in the international marketplace. Economic analysts, therefore, are always on the lookout for developments that could move foreign currency exchange values. They have to keep track not only what’s happening in the business and industry sector but also in the political arena and government affairs. Having a grasp of the currency exchange fluctuations and to which direction some foreign currency values are trending is a valuable input not only for business decisions or company investments. Individuals who travel to international destinations likewise stand to benefit if they have the capability to track currency exchange movements.

The volatility of currency exchange values, coupled with the numerous currencies at play in the world markets, has led to the development of tools or programs used to calculate various money values. Some of these devices are sold online while some websites offer them for free. The Internet portals that typically have these money value converters are those that are in the business of providing services to clients who want to buy currency online. There are media websites, particularly those engaged in reporting business and financial news, that also feature free currency exchange calculators.

Using such a device, it will only take a few seconds to compute currency values. With such instantaneous result, this tool has become an ally to Internet-based currency changers who need to provide quick quotes to those who want their foreign money currency changed. Forex traders are prime beneficiaries of this device too which has become indispensable in an ever-competitive market environment. Because of the rich potential of gaining profits from currency exchange fluctuations, forex trading has drawn an increasing number of participants.

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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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