What are the Do's and Don'ts of Foreign Currency Exchange

In navigating foreign currency exchange, following a few simple do's and don'ts can make a significant difference in your travel budget. I am all for that—more money spent on adventures rather than in fees.

Being mindful of a few simple tricks can definitely save you some cash.

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DO Research Exchange Rates

Yes, do a little bit of research when planning your trip to make sure you won't be surprised when it comes to currency exchange.

Always check the current exchange rates and compare them across different sources or platforms to get the best deal.

DO Use Reputable Exchange Services

Exchange currency at reputable banks, currency exchange offices, or reliable online platforms to avoid scams or inflated rates.

DO Exchange Enough Money

When deciding how much foreign currency to carry while traveling, it's a personal choice based on your destination and spending habits.

I recommend carrying enough cash to cover expenses for 1-2 days in case of emergencies like a lost or stolen credit card. This ensures you have immediate funds for essentials such as meals while allowing time to resolve any issues with your bank.

DON'T Exchange Your Money at the Airport

For the love of travel, do not exchange at airports! 

Airport currency exchange services may also charge higher fees or commissions for their convenience. These fees can significantly reduce the amount of foreign currency you receive after the exchange.

And yes, I have made this mistake. Let me spare you the heartache and tell you that doing so is definitely not a good idea!

DON'T Exchange Too Much at Once

Refrain from exchanging large amounts of currency at once unless necessary, as rates can fluctuate and you might end up losing money.

DON'T Pay in Your Home Currency

When using your credit card abroad, decline offers to pay in your home currency (Dynamic Currency Conversion) as it usually results in less favorable exchange rates.

To quantify the difference, the fees at airport currency exchange services can vary but are generally higher than those at other locations. For example, some studies suggest that exchange rates at airports can be 10-15% worse than those offered by banks or exchange offices in city centers.

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