Tips for Purchasing Foreign Currency When Travelling Abroad

There is a lot more that needs to be done when you travel abroad apart from booking the flights and hotel accommodations. For instance, people have to get travel insurance, get medical check-ups, and most importantly, they have to exchange their local currency with foreign ones. Most people are unaware of the procedures for purchasing foreign currencies which makes it a tedious task. They even end up losing money or taking up deals that are not profitable at all.

If you are travelling for the very first time and do not know how to be smart about purchasing foreign currency, we have some tips for you!

Things to Consider While Purchasing Foreign Currency While Travelling Abroad

NEVER Use Currency Exchanges at the Airports

The money exchanges available at the airports usually charge you the highest conversion rates. These conversion rates can range from somewhere and can be much worse than the standard bank rate. They can be higher by 10% to 12%. It is always a great idea to get your money exchanged from any other money exchange in the city. Or you can consider using ATMs when you need cash. Moreover, if you do not have cash at all you can get a small amount exchanged for urgent needs and then get the rest of your money exchanged from somewhere else.

The most noteworthy tip here is purchasing foreign currency before you leave your country. This will help you avoid any inconvenience or additional exchange rates when you reach your destination.

Learn About Universal Currencies

It goes without saying that the US Dollar is the most popularly accepted and used currency in the world. There are several countries all across the world that use the USD as part of a dual currency system. This makes it a universal currency of sorts.

When you travel abroad, you will find several instances when you shop for something or purchase anything, the locals might give you the option of paying in dollars. This practice helps people keep a better track of their expenses and makes the cash more manageable. However, if you have local currency at hand, you can always decline the offer and pay with the local currency and avoid exchange rates.

Get Your Credit Cards Optimized for Travel

When it comes to purchasing foreign currency, it is very important to know where you can cut some corners and save more money for your trip. Once you start planning for your trip, you should apply for a credit card that is optimized for foreign transactions. There might be some hidden charges that you have to pay if you use your regular credit or debit card for transactions overseas. You can contact your bank to see if you can apply for a credit card that is especially adapted for foreign transactions. They will surely have something for you and even if they do not, they will upgrade your existing one to suit your overseas spending.

Concluding Remarks

In a nutshell, whenever you start purchasing foreign currency ensure to do thorough research of the local currency of the country that you are travelling to. Some key things to keep in mind are that you have to have a good grasp of how other currencies work in that country. Moreover, contact your bank in advance and ask them to issue you a card that is optimized for foreign transactions or upgrade your existing credit card. Lastly, you need to avoid making any last-minute currency exchanges at the airports as the exchange rates are extremely high at such places. We hope this helped you in having a better understanding of how you need to work with currency exchanges when you travel. Happy Travels!