Posted by forex at 4:30 AM
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1. Estimate the amount of funds required for your trip. Consult with your travel agent or tour group about a reasonable per diem for your destination. You do not want to exchange more currency than necessary because you will need to reconvert the extra funds back into U.S. dollars. Usually, buybacks of foreign currency are at a much lower rate than the initial purchase.
2. Increase your estimated amount by 10 percent for contingency purposes. You may spend more than you think.
3. Look at a currency exchange website such as XE.com to find out the current market rate of the desired currency to be purchased.
4. Review your conversion options. Generally, the best rate for exchanging U.S. dollars for foreign currency will be in the destination country. In exceptional circumstances, you may need to convert in advance if arriving in a location where there are no currency exchanges such as a war zone. Otherwise, fly first and convert later. If your bank or credit card does not charge high transaction fees or offer an inferior exchange rate, you can use an ATM machine for foreign cash just like at home. If your bank charges too much, change U.S. dollars or traveler's checks with a currency exchange found at the destination airport.
5. Convert your currency. Make sure to keep receipts of all transactions.