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Top Travel Money Advice: Your Options for Carrying Foreign Currency Abroad

Many people leave buying their money until the last minute. There is no reason not to but you will not get particularly good exchange rates if you leave it until you get to the airport or having to get your money on the high street. The most cost effective ways to get foreign currency will depend on your personal circumstances.
You have the five options detailed below but the key to getting the most out of your travel money is to do plan a little ahead and be organised. Just like everything else foreign currency and exchange rates up up and down in price in response to market competition (or they get worst just when you need to buy your money and they get better the day after you have bought it) so you can shop around for the best deals.

Your Currency Exchange Options

Buying currency – The worst rates are with either on with the high street banks or when buying on the plane. The advantage offered by the bank is that you can walk in off the street and buy some of the most common currencies over the counter their and then. On the plane they will have the right currency for your destination. You can still buy currency on the high street but get better rates by being more organised. The Post Office offers two rates, they have an ‘in store’ rate and an online rate.

The online is much better and you can order online but still pick up your cash at your local branch. Marks & Spencers offer the same rate online as they do in store so you can get a decent rate their but if you have to make a special trip then the cost in petrol could easily wipe out the savings. The best rates are available from the home delivery services. You will need to leave yourself at least two working days to use one of these but that is the same amount of time that the banks and post office will need to order in any currencies they do not have in stock. The currency is then be delivered to you by special delivery and you need to sign for it. The savings can be as much as 20% over the high street providers and normally over 10%. Delivery is normally free if you are spending more than £450 to £500.

There is one note of caution you should be aware of and that is that there is at least one online provider (not on our site) that offers really good rates but during the ordering process asks you to gamble with your money. They ask you to accept the rate they are offering now or to accept the rate at the time when they receive your payment. The suggestion is that the rate will improve over night. If your holiday money is money you can afford to lose then you may get a half a percent more as rates may go up as well as down.

Travellers’ Cheques – this has always been considered one of the safest and easiest ways to carry money abroad but today’s choices in credit cards, online foreign exchange and cash withdrawals are giving us more options. Some holidaymakers use cheques in conjunction with other forms of exchange. Travellers’ cheques are very safe to carry, but it can be hard finding a way to cash them if you are in a remote place. There are also a few associated scams relating to fake cheques that you should be aware of.

Pre paid currency cards – These are the traveller’s cheques for the 21st century but wth chip and pin security. As ATMs (cash machines) are so common now a pre paid currency card is a very easy alternative. You transfer money on to the card either before you leave or by using your online banking at any time. You can have multiple cards on the same account so that you can all spend from the same pot of money or a spare card can be left in the hotel safe should you lose a card or have it stolen then you can clear out your account before the thieves do. These cards are not connected to your bank account so that even if a card is stolen they do not get access to your bank. Anyone can pay money on to a card so should a teenage son or daughter find themselves stranded you can pay money on to their card and they can draw it out as cash or buy things using the card like a debit card here in the UK. The only thing to be wary of is that some cards have a monthly or annual fee and this can eat into your money even if you are not using it. These cards are to be avoided.

Cash withdrawals abroad – this can be very expensive if you are withdrawing from your credit card, so it is best to use your debit account if possible. Look out for hidden charges. There are two notes of caution. Firstly ATM machines are the favourite haunt of muggers and bag snatchers. You should try and use ATM machines where you go inside an atrium or inside the bank. Secondly it is possible for your card to be cloned anywhere even here in the UK so there is no reason to think that while you are abroad in a country where you probably do not speak the language your card will be any safer. If you standard debit card is cloned then the thieves have access to your entire bank account.

Credit cards – everyone should know that credit card companies charge different interest rates for different types of transaction and that the way that your balance is paid off. Cash advances by credit card is the most expensive kind of transaction and the last to be paid off if you do not clear your balance in full at the end of the month.

Know the Rules of Travel Money & Currency Exchange

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Millions of Americans travel overseas for business or pleasure every year. Buying your travel money can often seem to consist simply of ensuring you get the best exchange rate. However, it is just as important to familiarise yourself with any rules relating to currency exchange, taking money into or taking money out of a country.

This applies to many countries and currencies. We have used the South African Rand as an example because it was a significant issue just a couple of years ago. There are many countries that try and stop money leaving. Some of the restrictions are lax and rarely enforced but others are quite strict. Now on every currency page we have an easy to read summary of key facts and information on this sort of limit and other important rules.

Because the vast majority of US travellers are visiting Europe, Canda or Mexico, they will not come across any restrictions on travel money. However, as a recent poll concerning South Africa showed, this is not always the case.

Some or All of your Travel Money could be confiscated

This could have affected thousands of people who visited South Africa for the 2010 World Cup, but research showed that 26% (more than 1 in 4) people did not know that the South Africa sets a limit of 5,000 South African Rand, equivalent to around £403 in cash coming in or out of the country. This means that many UK football fans faced having any excess cash confiscated when they went through South African customs.

At the time some 36%(just over a third) of respondents to the poll said that they were planning to take more than £450 worth of South African Rand with them, with the average sum being around £665 worth. One in five said that they would be taking over £1,000 worth of Rand and 6% (about 1 in 20) were planning to take more than £2,000 worth, far more travel money than they were likely to need, even if allowed to bring it into South Africa at all.

How to avoid the limits

There are ways to avoid such limits, such as pre-paid currency cards, that act just like a debit card and can be ‘charged up’ with up to £7,000. These cards can be currency specific so you put Pounds on the card and it shows as Euros or US Dollars or the cards are multi currency and you can use the card to pay in a whole range of currencies. Because no physical money ever has to change hands the card providers can offer some really competitive rates.

If there are any specific questions you have about taking money into or out of a country then please ask and we will try and answer your questions.

Keep an Eye on Currency Exchange Rates

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Planning a romantic getaway? Your honeymoon, perhaps? Or a skiing holiday for the whole family? Whether you are travelling for business or for pleasure, keeping an eye on foreign currency can help you save money that could go towards something much more memorable and enjoyable.

Staying in the loop with foreign currency exchange rates is essential if you are a regular jet-setter. If you spend three days a week working in your Berlin head-office, or you visit a loved one in who’s based out ion Singapore three times a year, it is even more important to make savings wherever you can.

The Credit Crunch and Currency Exchange

Rates have been affected by the global recession, just like everything else. The UK was thwarted by the credit crunch and there was no help for the plunging pound. So checking foreign exchange rates before you make your travel plans is something that you should think about.

So how is the conversion rate calculated? In percentages, a Canadian dollar might be worth 85% of the American dollar – so this would work out at 85 cents. In currency, you would get 85 cents for every Canadian dollar you hand over. But the ever fluctuating foreign exchange rates could mean that you are getting a pound to 2.5 US dollars one day, and a pound to only 2 US dollars the next.

Ever changing market conditions dictate the variations in foreign exchange rates, so it is always an idea to research the last two weeks of conversions, and maybe even take a look into the history of the conversion.
The Difference between ‘Floating’ and ‘Pegged’

A currency will either be free-floating or pegged. The difference between the two is very simple. In the 1980’s the Hong Kong dollar was pegged relative to the US dollar – this meant that there was a set percentage in conversion. A free floating currency is free to fluctuate with the changing market conditions in relation with other currencies.

Floating currencies can make a huge difference to your expenditure. Being aware of what’s happening with foreign exchange rates is highly beneficial to the traveller and will increase spending power when the variation works in favour of their finances.

Holiday Planning and the Best Foreign Currency Exchange Rates

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The World Wide Web has grown so much in recent years, and it has shaped the way that consumers do things all over the world. From the way we bid for second hand designer jewellery, the way to order our weekly groceries, to the way we look for a new car or home, the net is the first place we look. If you want to plan an exciting itinerary for your next holiday and you want the best foreign exchange rates, you will find everything you need on the internet.

As consumers turn to the web for everything that they could possibly need, competition has become tense with so many travel agents and hotels looking for that competitive edge – and when they don’t have any specialist Unique Selling Points like the incredible Mandarin Oriental in Bangkok, or the famous Grand Hotel in Oslo, it’s all about price wars.

With a growing number of websites offering last minute deals on flights and accommodation, travel agent package deals are seeing the biggest adversary yet. For the holiday maker, this means amazing deals, amazing prices and the best foreign exchange rates.

The Best Foreign Exchange Rates and the Best Planning

If you’re a get-up-and-go tourist, a plan of what you are going to do each day is going to save you a lot of wasted time. Instead of flicking through the hotel brochures for all the nearest tourist attractions, planning ahead can save you valuable vacation time and money. If you research local restaurants and attractions, you will also be able to budget. Getting the best foreign currency exchange rates and making a well thought-out agenda can be done online, the one place where you can find everything you need in one place.

The Best Foreign Exchange Rates and the Best Planning

If you are looking for the best foreign exchange rates for your holiday, there are various places that you could start your search. But the web is the ultimate resource for all your financial requirements. With comparison platforms, forums and reviews, the web can provide us with knowledge and the ability to seek out the best deals for foreign currency.

Inflation and Currency Exchange Rates Today

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Back in April 2009, Britain’s public deficit reached an unspeakable high. It was the highest since records began. In December 2009, inflation soared to a record amount. Now inflation has risen above the 2 percent target of the Bank of England and we are expecting to adverse changes to happen to our exchange rates. Today, Bank of England governor expresses his deep concerns about where this will lead.

How Inflation Will Affect Currency Exchange Rates

Today, the recession is over. But the worst is not. Because now the entire country has been left with a bad taste in our mouths – we have a huge public deficit which rises far above the debt of all UN countries put together and is the highest since paper records started. We’ve faced the threat of losing our borrowing status, having been downgraded from ‘stable’ to ‘unstable’, and now we have inflation to deal with. There is no doubt that this will have an adverse effect of exchange rates. Today, we deal the recession aftermath.

Inflation is a vicious cycle which started from increasing interest rates and long-term borrowing. These methods of money-raising led to the direct causes of inflation – increased prices and increased import prices due to devaluation. In turn, percent mark-ups and profits need to match up to increasing prices, therefore higher wages and salaries are demanded. And so the cycle begins. So how will this affect exchange rates today?

The Pound and Exchange Rates

Today our prices have increased so our exports are more expensive. As this persists and we do less trade with other countries, we devalue our currency. But the Liberal Democrat Treasury spokesman, Vince Cable assured the country that this is a ‘temporary spike’ in our economy and soon inflation will drop. According to Vince Cable, it is expected to drop very quickly so it is very unlikely of damage to our future exchange rates. Today in Britain, recovery is still fragile, but there is progress.

Very recently, one of the most accurate currencies, as reported by the Guardian, was the British pound. It gained good ground after putting monetary-stimulus measures on hold and the quantitative easing programme caused the British pound to rise by 0.8%, while the Euro slipped 0.7%.

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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Currency Exchange Tips for Business People

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Currency exchange is a critical part of business operations traversing national boundaries. Even a simple business trip will have to consider the best rate of foreign currency exchange in order to maximize possible returns for a business traveler. The importance of having a reliable foreign exchange becomes even more pronounced when investments or revenues are involved, substantial amounts that are greatly impacted upon when changing currencies. Thus, acquiring the services of money-changing companies for business purposes has to be carefully considered and several factors addressed.

Access to information is one element that should be foremost in searching for currency exchange service provider. The foreign exchange market is information-driven. Rates can change overnight or even in a matter of hours depending on market information that filters in. Matters that affect market conditions can include shifts in government policies, change in leaderships, and even the weather. Such information has to be available at the businessmen’s fingertips. Profits or losses can materialize in a matter of minutes when dealing in foreign currencies.

The computer technology of the service provider is another crucial factor. The type of software used by the currency exchange company, for one, has to be thoroughly examined. Those that have cutting-edge technology would be in a better position to deliver value-for-money services. The world’s foreign exchange markets operate round-the-clock. Money rates fluctuate at various time zones which would often require instantaneous computations that only those with the right technological tools can deliver with timeliness and efficiency.

Comparison shopping comes next for businessmen wanting to avail of the services of a forex firm. All items that a service provider charges have to be scrutinized and a comparison made with the rates of its competitors. Check, for instance, whether a company pays its broker-agents on a commission basis or their brokers derive earnings from the difference between the amount that buyers wish to pay and what sellers aim to charge. Comparison of fees and costs among foreign currency exchange service providers will enable businessmen to discover and avoid hidden charges that can jeopardize profitability, particularly when changing large sums of money from one currency to another.

Customer service too deserves a close scrutiny, and any lip service of a forex service provider in this regard has to be verified or tested. Online reviews are a great source of information along with interviews of past or current customers of the money-changing firm. Naturally, the inclination would be for a company which generates the most positive remarks.

Important Things to Remember While Spending Abroad

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Today’s US currency exchange rate makes it easy for Americans to enjoy larger budgets during their vacations overseas. Vacationists can either choose to have their dollars exchanged at their local moneychangers before departure, or upon arriving at their destination. Any of the these two options is fine, so long as they are sure that the establishment can give the best possible currency exchange rates.

However, whenever traveling to another country, it’s important to keep in mind a few safety tips whenever carrying cash or cards on person in the open public. Although the tourist destination advertised on the Internet may seem like a dream-like island paradise, dwelling into the wrong areas may significantly increase anyone’s chances for getting mugged.

With that said, the first tip is to carry as much cash as needed whenever leaving the hotel. Thieves have trained-eyes that can spot any foreigner lugging around a money belt that’s loaded with cash. Trying to conceal it under the shirt won’t do much good either, as the bulge can easily be spotted from a distance.

Leaving the bulk of cash back at the hotel room is advisable. Keeping it in the room’s safe would be even better, as there’s always that chance thieves coordinate with the room keepers of certain hotels to rob customers upon leaving their rooms.

In the case of credit cards, vacationers are advised to bring the ones they need only. The last thing any vacationist would want to happen is having to make half-a-dozen phone calls to his or her card issuers to cancel the cards before the crooks start racking up fraudulent charges.

Establishments that allow foreign customers to pay using their local currency may have some hidden agenda behind the seemingly convenient option. There’s a possibility that the exchange rate offered by these businesses are highly unfavorable, which means the vacationist would be spending a whole lot more than what he actually has to.

Holiday trippers should keep in mind that planning a holiday takes much more than just leveraging the US currency exchange rate in countries wherein the dollar is strongest. Observing proper safety precautions should be made a priority.

Some areas in these value-friendly countries are teeming with hoodlums that intend to take whatever they can from defenseless and careless tourists, so maintaining a low-profile (e.g. not wearing expensive-looking jewelries, carrying a big pouch of money, etc.) would be in the best interest of the vacationer.

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.