6 Quick Tips to Understand Exchange Rates

Whenever you travel, you want to save money in several ways. Who doesn’t? The more experienced and knowledgeable traveller will probably know a few ways to save money. However, there are so many ways that may even evade the smart traveller. Every traveller wants to get the most bang for their buck, especially with the exchange rate.

You can save on hotels and flights but imagine saving on exchange rates as well. Let’s look at some ways to exchange money on your travels.

1. Learn The Terms

You do not have to be an expert, but foreign exchange has a lot of its own terms and language that many people just do not fully understand. You need to make sure you know at least some of the basic stuff to stand you in good stead. For example, ‘sell rate’ is what you get when you exchange your dollar. Just knowing a few basic terms can put you ahead of many people.

2. Research Your Currency

Certain currencies like the US dollar or the Euro may be pretty straightforward. However, some foreign currencies can be a whole lot trickier. For currencies like that, you need to be on your toes. Morocco and Cuba have currencies that can be pretty strange! Cuba has one for locals and one for tourists. Morocco’s cannot be exchanged internationally. Confused? That’s why it is good to do some research first. Certain countries in Southeast Asia use US dollars as well but they need to be in good condition.

3. Observe Exchange Rates

One thing you need to understand is that currency constantly changes each day. There are so many reasons why it fluctuates. It can be strong one day and weak the next. It can also change within the same day. It is good to watch exchange rates, especially on your particular currency so that you will have a better idea.

4. Shop Around

As mentioned earlier, currency exchange rates are always fluctuating. To make things even more confusing, they can also fluctuate from provider to provider. That’s why, if you are not in a hurry or desperate, it helps if you have the time to shop around first before you buy.

5. The Online Trick

Did you know that you can get better deals on the Internet? Many exchange providers offer favourable terms online than on the street. That’s why, if you have the time, look into this. It’s only for those who are pressed for time who may not have the luxury of sitting down to check rates on the Internet. One way you can do this is to use a comparison website to make things easy and convenient.

6. Prepaid Cards

Look into the use of a prepaid card. This is a great alternative to carrying loads of cash with you in a foreign country. Not only will it give you some peace of mind, your exchange rate is virtually locked from the day you bought it, so there is no fluctuation when you need to spend.

There are places you should not exchange money, such as airports or hotels. You will never get a good rate. Sometimes, you may also be able to negotiate a discount rate.