Changing currency when abroad is easy, but different ways of exchanging currency offer different rates. Especially in tourist or business areas, competition among foreign exchange services means that getting a better rate may just be a matter of crossing the street or walking next door.
Usually, the best exchange rates for cash and travelers’ cheques are offered at licensed exchange booths in central and tourist areas of major cities. These booths deal in volume, and their rates are usually only a fraction of a percentage point less favorable than the official market rate, especially when changing foreign currency into local currency. Beware of commissions, especially when changing small amounts of cash, as even a small commission can make what seems to be a favorable rate turn into a very unprofitable one.
Another option is bank exchange desks. These are safe and comfortable as you enter the bank itself rather than changing money at a booth that is accessible directly from the street. When changing large amounts of money, many banks offer a preferred rate, and the safety aspect makes them the best choice in cities and areas that are known for crime against tourists.
Using your ATM card to withdraw local currency can get a favorable rate, so long as neither the local bank nor your bank includes a high fee. This is also the case with making purchases using your ATM or credit card; check your card issuer’s rules online before using the card abroad, and check the ATM you are using to see if it charges a fee for foreign cards. If you are uncertain, look for a branch of the bank to which the ATM belongs and ask if their ATM charges commissions. The bank may also offer teller cash withdrawals and advances with your card. However, such transactions are almost always subject to fees and should be used only if personal safety outweighs all other considerations when obtaining foreign currency.
Under no circumstances should you ever use an unlicensed or black market money changer. You run the risk of getting counterfeit currency as well as falling victim to sleight-of-hand tricks that leave you shortchanged. In some countries, all private currency exchange is illegal, and in such situations it is even best to not accept the offer of a friend or contact to change money for you.
