Even the most frequent travelers find currency exchange management to be the toughest aspect of traveling abroad. Most business owners who travel abroad frequently find it difficult to manage foreign currency exchange in Los Angeles.
Over time, they do get to know the rates and how currency exchange operates. However, most people find the whole process of international currency transfers quite challenging.
When doing currency conversion, you are typically required to pay a ‘mark-up’ on the exchange rate along with a service fee. This mark-up could be anywhere from 3% to a huge 15%, depending on where you exchange your money and when.
Taking that into consideration, it is important to be careful when you exchange currency for your travel needs. The tips in this blog could come in handy for managing your currency conversion when you plan on traveling abroad.
1. Choose The Correct Currency
One of the first things you need to do is to find out the correct quote currency. There is a rate of exchange between a pair of currencies in any foreign currency exchange. The currency you hold is called the base currency, and the currency you wish to acquire is the quote currency.
While traveling abroad, the general practice is to convert your base currency into a widely used quote currency, for example, the dollar (USD) or the euro (EUR). Later, you can convert the quote currency into the local currency or the most used currency in your destination country.
However, you must closely monitor the quote currency you convert into. Depending on the countries, some currencies like the euro may be more profitable than USD.
To determine the ideal quote currency, you must study the existing conversion charges between your first quote currency and the actual quote currency.
2. Do The Background Work
If you have enough time to plan your trip, you should monitor the rate of exchange trends between your home and destination currencies.
You can check the present interbank exchange rates by doing a simple Google search. You can also use a trusted currency converter to get the exact prevailing currency exchange rates.
It would be advisable to get your foreign exchange currency before leaving for your trip. It would be best if you also considered transferring cash even before you travel. When you come to a foreign country, you want to have a valid currency.
Monitoring the prevailing currency exchange rates provides you with a good idea of what value of money you should convert before your travel.
3. Select The Right Medium
During the application for foreign currency exchange, you can pick from multiple options to store the money. You can have it transferred via cash, credit/debit card, Forex card, travelers’ cheques, etc. It would help if you properly researched all the channels’ pros and cons before you settle on the best option.
Traveler’s cheques have almost become obsolete, but some loyal users still rely on them as they can be encashed at any bank in the vicinity and provide a better alternative to cash.
Similarly, many travelers vouch for multiple currency Forex cards. You could also carry an international credit or debit card, but it should be noted that they incur foreign transaction fees, which can be saved when you use Forex cards.
You should check out the foreign transaction fees of all the products on offer and choose the option that you can derive the best value for money from.
4. Get A Currency Conversion Mobile App
When you are traveling abroad, one of the best companions you could take along is a currency converter app. This will allow you to track the exchange rates and set an alert for important currency movements.
The currency converter app comes in handy when searching for rates before your travel and while you are at your destination.
Most apps in the market offer speed and accurate conversion. Be sure to carry along the best-rated currency conversion app for tracking currency rates.
5. Beware Of Hidden Charges
Foreign currency exchange transactions come with many hidden charges that you need to watch out for. Many money transfer channels charge a service fee along with the foreign transaction fee.
It is a common mistake to try to obtain the currency after landing at the destination airport. Many airports raise currency conversion charges by a substantial percentage.
It is worth remembering that when dealing with currency conversion, even a small difference in the exchange rate can affect the final output of the quote currency. You should be beware of hidden charges that might end up costing you more.
In Conclusion
Traveling abroad can be pretty expensive. You can make significant savings in your travel budget if you know how to manage your currency conversion efficiently. For hassle-free assistance with all your travel and currency conversion needs, be sure to check out ALTOUR.
