Excited for your upcoming overseas vacation? These currency exchange tips could help you. 

Travelling to another country is always fun. From the cultures to food, there is always something about other countries that satiate our curiosity for something different.

However, when it comes to exchanging currency, it can seem complicated and daunting if you are inexperienced. If you find yourself in that spot, don’t fret.

This article will detail to you the key things that you need to know before changing currency for your upcoming travel.

#1: Understanding How to Transact with Money Changers

If you have gone to a money changer, you would have seen their bright displays with the headers “We Buy” and “We Sell” or “Bid” and “Ask”, where there are two types of exchange rates listed for each currency. So, which is the one you are getting?

The thing you need to focus on is that the money changer is the “we” in this situation.

  • If you want to buy foreign currency from them, that means you want them to “we sell” to you.
  • If you have foreign currency in hand are trying to sell it to them in exchange for ringgit, that means you want them to “we buy” from you.

Depending on what your intention are, you then use the exchange rate listed for your currency of choice under the relevant Buy or Sell column.

Now, the money changer will typically ask you the amount of money you are planning to convert, with a quick tap of the calculator a proposed exchange sum is presented to you. You can agree then continue with your transaction, disagree and walk away, or less common nowadays is if there is a chance to negotiate a little bit (typically with larger sums).

#2: Research on Whether The Country You Visit Accepts Big Notes

This is a little-known thing – many merchants in other countries don’t accept big notes. Can you imagine taking a 50 English Pound or 10,000 yen note and the merchants there seem hesitant to accept it? Some will even outright reject them.

This is the equivalent of giving an RM100 note to a roadside stall in payment for your 50 sen air suam. Without a doubt, they will ask whether you have a smaller denominations to pay them with. In many countries, big notes are subjected to a lot of fraud and fakes so merchants are wary about accepting them. It can also be troublesome for them to find sufficient cash to give you your change. And in this day and age, merchants in some countries are leaning toward cashless transactions instead.

Most money changers will primarily give big notes as they don’t usually stock up a lot on smaller notes. Many Malaysians who travel overseas often find their big notes are not acceptable and have to encounter some hassle to break them down to small notes.

#3: Check Your Cashless Options, Limits, and Restrictions

Carrying stacks of cash with you is just not advisable. It is dangerous as eyes are everywhere on how much cash you are carrying with you.

Find out what are the acceptable cashless options in the country you are visiting, e.g. VISA, Mastercard, Apple Pay, Alipay, and what are tasks you may be required to do beforehand.

  • Where can it be used? Or, how convenient is it?
  • Is there a credit/spending/withdrawal limit you need to increase?
  • What restrictions are there?
  • What is their currency exchange rate?

By knowing the above, this will help determine how much you can spend using cashless options and subsequently how much you should change in cash.

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#4: Avoid Exchanging Currency at Airports and Commercial Banks

Changing money at airports and commercial banks is often viewed as a matter of convenience and trust. However while not necessarily true everywhere, chances are the exchange rates at these places are unfavourable to you. Be prepared to pay an arm and a leg for the service.

Instead, make time in your schedule to visit dedicated money changers and examine their rates, which is the subject of the next point.

#5: Use Currency Changer Comparisons

It is a headache trying to determine the best rates around. You would have to travel around to see what their boards are quoting. However, there is a growing number of money changers listing their rates online daily now.

You can utilize the currency changer comparison websites that are available online to determine the best rates around. There is a caveat here, though. Just because the rate is good, does not mean that the money changer has the stock for you.

As many people flock to the best rates, many of the foreign currency stocks run out fast or they restrict you to only convert a certain amount. You might need to scout out several spots to prepare for such occasions.

Conclusion

Get set, ready, and go! Onward to the money changers!

You are now well-prepared to exchange your currency for that long-awaited holiday!

 

Let us know in the comments below about your holiday plans!

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