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In most instances, asking your credit card representative about exchanging money is best approach to getting a great exchange rate. Credit card companies have access to better rates than individuals and often deal in more than one currency. One precaution to take, nonetheless, is to check if your home currency is losing value, since not all transactions are converted instantly. Be cautious of possibility of receiving a lower than expected rate several days later.
Abroad While exchanging money after arriving to a foreign country is most convenient option, obvious risk is lack of options. The quoted exchange rate given may be determined purely by supply and demand, meaning that you will end up with a price close to what is being quoted in foreign exchange market globally. The government of country you are visiting sets currency exchange rate, which must be offered by anyone who is changing money; and a mark-up in rate is inevitable. An easy way to see if changing money in a foreign bank is a favorable decision is to compare currency rates beforehand in a local newspaper.
ATMs of a foreign country may also be a convenient way to obtain local currency at a reasonable rate. Keep in mind, however, that your withdrawal may be subject to a fee from both foreign and your local bank. Another precaution to take is to tell your bank of your travels, as they often freeze cards if out of ordinary transactions take place. As an illustration, if you make withdrawals in four different countries over course of a week, your bank may see this as a red flag and for security, immediately lock all transaction of funds.
Getting The Most Out of Your Money Now
Getting most of your money is a tricky task if you are unaware of all options, or have trouble finding good resources. A quick and easy way to decide which of these options are right for you is to firstly, talk to as many people as you can (such as your local bank teller and credit card company), and secondly, obtain rates from listed options and compare quotes with one another. As another alternative, you can compare your obtained rates with market rates quoted at GoCurrency.com (www.gocurrency.com), a currency converter that offers up-to-date exchange rates for over 150 world currencies.
Victor Siu is a contributing writer for GoCurrency.com. GoCurrency provides information on global exchange rates, movements and news related information.