From: sriram@cremona.Eng.Sun.COM (Sriram Ramachandran)
Newsgroups: rec.travel
Subject: Summary: Europe - Strategies for dealing with exchange rates etc.
Date: 29 Aug 1992 00:03:20 GMT
Organization: Sun Microsystems Inc., Mountain View, CA
NNTP-Posting-Host: cremona


I'm on the verge of leaving on my travels and would like to express 
my thanks for all the responses I received to various queries over the 
last couple of months. 
I'm including a summary of the replies to my message concerning strategies 
for dealing with currency exchange. 

sriram/.


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From john@sequent.com Wed Aug 26 12:56:49 1992
Date: Wed, 26 Aug 92 12:56:33 -0700
From: John Vander Borght <john@sequent.com>
To: sriram@cremona.Eng.Sun.COM
Subject: Re: Europe - Strategies for dealing with exchange rates, money etc.
Newsgroups: rec.travel
Content-Length: 2534

In rec.travel you write:

In 1988, my wife and I spent 6.5 months travelling in Europe.  So, I speak
from experience, but it is somewhat dated.

>I'm looking for hints on dealing with currency exchange on a prolonged 
>trip to Europe. A few that I've gathered so far:

>* Banks usually have better exchange rates.

Definitely true vs hotels, exchange booths, airports or all the rest of the
places you can get cash.  The only exception I can think of is American
Express offices for cashing traveller's checks, they usually do as well as
banks.

>* Credit Cards: 
>  There seem to two schools of thought on using credit cards. One that says 
>  that credit card companies usually give you a more favourable exchange 
>  rate. The other claim is that places that accept credit cards charge 
>  higher prices in the first place (to offset the fee they pay to the credit 
>  card companies) and this offsets the exchange gain.
>  Any opinions ?

Almost everyone takes credit cards so the second claim is not important
today.  When we got home (and I've also discovered on numerous business
trips), that credit cards do give the best exchange rate.  For example,
whenever I've changed money on a business trip (at the airport OR a bank)
and used that exchange rate in converting my credit card expenses, I've
always come out ahead on my expense reports because my bill is less than
what I've been reimbursed.

>* Convert all coins into paper currency before leaving one country. 

Definitely true if you intend on exchanging them.  With the possible
exception of British Pounds and large Swiss Franc coins they are worthless
for exchange outside the country.

>* Carrying currency in local currency (francs, marks etc) from the US 
>  to lock in current exchange rates. Ofcourse with the rates being the 
>  way they are, I'm not sure if this will help a whole lot unless ofcourse 
>  the dollar continues to spiral downwards. 

True, if you can find a bank in the US to get the currency from at a decent
exchange rate.  I've found that many of the banks here don't give very good
rates.  Definitely true for the first country you get to if you'll be
arriving when the banks are closed.  It is much better to have some money
with you rather than having to exchange it at the airport.  Airports tend
to be one of the worst places to change money because they know they have a
captive audience.

>sriram/.

John Vander Borght
john@sequent.com
-- 
"Practice random kindness and senseless acts of beauty!"
John Vander Borght
john@sequent.com


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From lisap@olomana.soest.hawaii.edu Wed Aug 26 23:33:42 1992
Date: Wed, 26 Aug 92 20:07:57 HST
From: lisap@olomana.soest.hawaii.edu (Lisa Petersen)
To: sriram@cremona.Eng.Sun.COM
Subject: re: Europe - Strategies for dealing with exchange rates, money etc.
Cc: lisap@olomana.soest.hawaii.edu
Content-Length: 2918


Hi Sriram!

It looks like you've got all the basics on exchanging money wired!  But
I do have a few suggestions.

1. Avoid changing money in one country several times because each time
you do, they charge a fee, and most of the time it's a flat fee regardless
of how much you're changing.  Here's what I do to minimize trips to the
bank.  I estimate how much money I will need for my whole stay in the
country, and then divide the amount in half.  I buy that "half" when I
arrive in the country, and then see how long it lasts.  When that money
runs out, I make another trip to the bank, this time with a more accurate
estimate of how much more I'll need.  

2. I understand your concerns about using a credit card.  If you use the
credit card in places where they don't/can't charge extra for credit card
use, then you're probably better off using the card.  I used my card for
a train ticket.  I always check my credit card bill when I get home to 
see if I made out or not, and it always seems I got a better deal having
used the card than if I had paid cash.

3. Coins.  Well, banks won't take them, but they make nice souveniers.
Once I had a few dollars' worth of money leftover when I left a country,
so I walked around the campground and found some Swiss people who gave
me French francs for my Swiss francs.  You can always find people to
trade money with.

4. I highly recommend you take some US dollars with you in $1, $5 and
maybe a $10.  If you're short on money and the banks are closed or you
are leaving the country, you might be able to find an American who will
trade you.  This worked for me in Paris when I was leaving to get on
the train.  I had to pay for my bicycle and was 8 francs short!  I ran
around the train station with $2 in my hand and found an American who
sold me 11 francs.  Just enough to get the bike on the train, and it
obviously beats a trip to the exchange booth in the train station!!!
Also along this line, if you're taking travellers checks, take different
denominations so that you don't have to change more than you have to.

5. I buy all the foreign money in the country, not in the US.  I'm 
afraid that US banks consider selling foreign currency a real bother
and won't give me as good a deal.  Presumably, banks in foreign
countries are happy to get tourist dollars.

6. Switching the venue to Canada, some banks there give better rates
if you buy with travellers checks rather than cash.  I asked about
that one time, and the teller told me that returning cash to the US
is a much greater risk than returning t-checks.  Makes sense.  I
didn't notice any banks in Europe offering that "deal," though.

I'm glad I'm not going to Europe this year -- the exchange rate is
so bad.  Makes me appreciate the rate when I went in 1988.

Well, have fun on your trip.  I would suggest you post a summary of
responses since this topic comes up from time to time.

Lisa Petersen


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From Jim.Grundy@cl.cam.ac.uk Thu Aug 27 01:14:28 1992
Date: Thu, 27 Aug 92 09:14:12 BST
From: Jim.Grundy@cl.cam.ac.uk
To: sriram@cremona.Eng.Sun.COM (Sriram Ramachandran)
Subject: Re: Europe - Strategies for dealing with exchange rates, money etc.
Content-Length: 2373

In article <l9njv5INNsfq@exodus.Eng.Sun.COM> you write:
|> I'm looking for hints on dealing with currency exchange on a prolonged 
|> trip to Europe. A few that I've gathered so far:
|> 
|> * Banks usually have better exchange rates.
This is not allways the case.
Sure if its midnight and there is no other beuro de change open then you
are going to be ripped off.   But its not allways the case that banks are
best.   Ive been shopping for some $s lately and Amex and Thomas Cook in
Cambridge are offering better rates than some (but not all) of the banks.

|> * Credit Cards: 
|>   There seem to two schools of thought on using credit cards. One that says 
|>   that credit card companies usually give you a more favourable exchange 
|>   rate. The other claim is that places that accept credit cards charge 
|>   higher prices in the first place (to offset the fee they pay to the
credit 
Some places do this.
I use a combination of card and cash - using the card whenever it wont cost
me extra.
You can always get cash on your card too at a bank.


|> * Convert all coins into paper currency before leaving one country.

Definite must.
 
|> * Carrying currency in local currency (francs, marks etc) from the US 
|>   to lock in current exchange rates. Ofcourse with the rates being the 
|>   way they are, I'm not sure if this will help a whole lot unless ofcourse 
|>   the dollar continues to spiral downwards. 

Whenever you change money you are either doing out of necessity or taking
a gamble that you are getting a good rate.
If you change all your money at the start of your holiday you are just betting
that the rate will get worse.
There is no advantage to doing this - unless you are confidant that the
rate is going to get worse.

Jim

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From garyg@hpcuhb.cup.hp.com Thu Aug 27 12:26:52 1992
Date: Thu, 27 Aug 92 12:26:27 pdt
From: Gary Gitzen <garyg@hpcuhb.cup.hp.com>
To: sriram@cremona.Eng.Sun.COM
Subject: Re: Europe - Strategies for dealing with exchange rates, money etc.
Content-Length: 495

Hi Siriam,

>* Convert all coins into paper currency before leaving one country. 

Good idea. Even better is to spend this last bit on something needed just 
before you cross the border. Gasoline is a good choice.

My European travel experiences tell me that in Western Europe you want
American Express checks in $US. In Eastern Europe you want $US or DM in cash,
and deal with reputable residents. Don't deal with "on the street" people who
offer to exchange currency.

Enjoy your trip.

Gary



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Newsgroups: rec.travel