Marisa

My husband and I will be leaving for France and Germany soon and we need to convert dollars into FF and DEM. In your experience, what has been the best place to convert foreign currency (meaning best conversion rate, availability of currency, and service charges). Which places should I avoid? I would prefer a place where I can go in person, but I would consider online places. Thanks for your help!!!

Bob Brown

Hi Marisa. You may get conflicting advice on this issue. A lot of depends on your own financial structure and how much your bank charges you for using "foreign" ATM machines. <BR> <BR>Here are some axioms to guide you: <BR>1. Generally speaking you get the best exchange rate available to you by using a credit card. <BR>2. Useng an ATM machine for local currency. [Usually the ATM card lets you enjoy a very good exchange rate, much better than you would get if you converted a check or American currency at a bank. But, know the tranactions fees in advance if you can. If your bank charges a large fee to use the ATM card, then you need to aware of that fact.] <BR> <BR>3. Buying foreign currency in the States is the most expensive way to acquire foreign currency. [At least that was my experience. Of course you might deal with a bank that comes close to the wholesale bank rate of exchange.] <BR>4. Always check a foreign currency coversion table to you will know how much of a "clip" you are taking when you converting money to local currency at a bank. <BR>[When changing from country to country, it is hard not to accumulate little amounts of local currency. The banks will NOT convert coins, no matter how large they are. For example, France circulates 10 franc coins, but the bank in Lausanne would not take the metal, but happily exchanged the paper. ] <BR>5. Carry two credit cards (at least) of different issues separately if possible. [If you cannot carry them separately, at least don't carry them in the same purse or pocket.] <BR>6. Take US$ travelers checks as a safety net. [The advantage there is that you can get a refund if the checks are lost or stolen.] <BR> <BR>I know some people will tell you that using travelers checks is a bad idea. <BR>I tend to agree, except I also want to be prepared for an emergency. <BR>Once we went to an ATM for local money and it was not working. We were at the train station at the Zürich airport, and there was no time to look for another ATM machine. So my wife converted a check to the local currency. <BR>Fortunately there was a branch of a local bank close by. <BR> <BR>That has been my strategy and so far it has worked. I have never been in a position where I could not pay what I owed. And believe me, not being able to pay your bills in a foreign country is not fun. You don't have the option of writing a personal check like you do in the USA. <BR>I know one night when paying at a restaurant in Paris, the waiter came back with my card and said it would not work. Why? I have no idea. But fortunately my wife had her credit card, which from a different bank, and it was accepted. I don't know what we would have done had the second card not worked, or if we had not had a second card. I don't think the restaurant would have accepted either a US$ American Express check or American greenbacks. There was an ATM was on the corner, so I guess my wife could have left me as a hostage while she went to get more money, or vice versa. <BR>I could not ask the waiter what he would have done because his English was about as limited as my French. <BR>All of which results in very limited conversation. Like bon appetite and au revoir and bon jour or bon soir. <BR>

Ed

Places to avoid. Almost anywhere in the US! <BR> <BR>The best place to exchange currency is in the country to which you are converting, in France for FF, in Germany for D-marks. Banks (including airport branch counters) have the best rate. <BR> <BR>The absolute best rate you're likely to get, though, is using your credit card (if you don't have to pay interest on month-to-month balance) or your cash card at an ATM. In both cases some credit card issuers and some banks have become greedy ... check with them before leaving home to find out what charges they apply. <BR> <BR>Extensive coverage of the ins and outs of foreign exchange for visitors to Europe at www.twenj.com/moneyand.htm <BR> <BR>Ed

Art

Hi Marisa, Bob said it all. I have taken the same $100.00 in travelers checks to Europe for the last 3 years (Greece, Hungary, Cezk Republic, Portugal and Spain). I'm using them now to buy groceries because they have gotton so dog eared. I'll get another $100 next year for emergencies as Bob says. If you are a member of the Auto Club you don't incurr any charges for them. I have lived with my Visa and ATM cards on all of my trips and the exchange rate is almost better. This year is was even better to pay as you go because the Euro was dropping as I traveled. <BR>

Marisa

Thanks for the great information!