China Travel 2.0

Currency Exchange and a Foreign Holiday

How do I exchange currency for a trip to another country?

Banks seem to be the first choice for vacation travelers who need to exchange money for a holiday in another country. Banks add a surcharge to every exchange and they may only post one rate a day, which may not be a real time rate. Other travelers rely on credit cards to exchange money. Credit cards use an exchange rate that includes their profit and they add a surcharge on every holiday purchase, so you don’t know how much the trip actually costs until you receive your monthly statement. Waiting until you arrive at your destination can cause budget issues because the currency market is always fluctuating. For those of you who have planned the trip of your life to go visit the Great Wall of China or see where the 2008 Summer Olympics were held may be surprised when you land in Beijing that the currency rate moved 1500 points, which means you pay an additional $150 for every $1000 you exchange, if you are using a Dollar/Renminbi exchange pair. When you use a reliable currency broker who watches the exchange market every hour you get the best rate of exchange at the time of the transaction with no surcharges, hidden fees or inflated profits.

When should I exchange money for my holiday?

Most people plan a vacation months before they depart. Reservations for hotels, restaurants and other attractions must be made in advance, so there are no surprises when you arrive. A Travel budget is usually put together and that budget should include the cost of exchanging money. If you wait until the day before the trip or when you arrive in Beijing to exchange money your budget is not accurate, which can cause stress along with other issues. The best time to exchange money is when you’re in the planning stage of the vacation. By exchanging small amounts of money at different times you know exactly what each exchange costs, which means you can develop an accurate budget. Averaging your exchanges over a period of time using a reliable currency broker is an excellent way to make the currency market work for you, not against you.

What does averaging my exchanges accomplish?

When you exchange small amounts of money at different times before the trip you eliminate bank surcharges, credit card profits and hidden fees charged by airport exchange merchants. You can develop a budget using actual exchange costs which makes the budget more realistic. Averaging always helps offset rate changes in the currency market like a sudden surge in the emerging currencies of countries like Russia, Argentina and Hungary. Averaging also reduces your exposure to normal rate changes while you travel.

Other travel tips

The best way to carry cash on a trip is in a money belt or in a hidden pocket that is secure and out of site. Use hotel safes and other security measures when you arrive. Common sense and awareness are your best security tools and they should be used at all times.

Well, tell us your experence of money things about your China travel. Your story is the best suggestions for other travellers.