Exchanging Money While Travelling

Basics

Exchange Rates

In all cases, have an idea of the current official exchange rate. To do this, just take a look at the Internet or, as a secondary option, the local press.

Since rates can fluctuate, if you're not in a hurry (for example, exchanging before departure), try to carry out your transactions when your currency is strong to maximise your benefit. The downside: this still requires keeping an eye on exchange rates for different currencies.

Don’t forget that on top of the official rates, transaction fees from exchange bureaus will be added (varying by type of bureau, location, currency, amount, nature, etc.). Ultimately, this determines the "real" exchange rate.

Depending on Your Payment Method

Whether you use cash, your card, or traveller’s cheques, the rates, fees, and even withdrawal limits won’t be the same.

Choosing the Right Amounts

While there’s no general rule, it’s best to always have at least 4 or 5 days’ worth of cash (foreign currency or local money) on you. On the other hand, carrying large sums in cash isn’t recommended (increases the risk of theft).

Meanwhile, it’s also better to avoid withdrawing very small amounts too often with your credit card, as the total cost of exchange transactions can add up over time.

Exchange Before Departure?

This is a recurring question: should you exchange part of your funds into local currency before leaving? The answer is clearly no, even for the most common currencies.

Common Currencies

This refers to US or Canadian dollars, British pounds, and a few other currencies. Even though these are easy to obtain at banks and exchange rates aren’t (in principle) bad, you can also wait to exchange once you’re there—especially if you’re travelling with a credit card.

Exceptions

When travelling to one of the (few) countries where it’s better to bring dollars rather than euros.

Another case where it might be useful is when heading to the United States, Canada, Australia, Japan, and you need a substantial budget, where cash or traveller’s cheques in euros aren’t easily exchanged locally, and especially if you risk hitting your card’s withdrawal limit.

Other Currencies

Even though you can now buy various currencies at some banks and especially online, there’s little benefit in doing so. If only because the exchange rates offered are often quite poor.

Buying "Direct"

Returning Traveller

Sometimes, people returning from a trip have leftover local currency they didn’t spend. Through forums and other online platforms, some offer to exchange it at the current rate, without fees, to travellers about to leave. Why not? Though usually, the amounts aren’t huge, and it’s obviously better if everyone lives in the same area to complete the transaction (in any case, avoid sending cash by post).

Passing Foreigner

This is a practice used by some: finding a tourist about to exchange their cash for euros and offering to do the transaction instead of the exchange bureau—without fees, of course.

While this method can allow exchanging large sums, it remains somewhat complicated, even convoluted. You’ll need to spend time near an exchange bureau, find someone who wants to exchange the currency you need, and, most importantly, establish trust with them for the transaction to go through. Not easy...

Exchanging Along the Way

At the Airport

Exchanging money is usually the first thing travellers do after clearing customs. While some airport exchange bureaus offer official rates and fees, others often take advantage of their location to profit.

So, if you plan to exchange cash or traveller’s cheques, take your time and compare the different bureaux in the airport (arrival and departure halls). If the rate doesn’t seem favourable, opt for a card transaction at an ATM—there won’t be any surprises there.