currency purchase
 

While I am not totally an idiot on all things, understanding the currency market is one of my less than stellar areas.

We are going to SA in Nov. I have been seeing the dollar weaken and am wondering if I should buy Rands now, at my local bank. The exchange rate is not great (.156), but there are no other fees. I can order it online and it will be deliverd to my local branch in about 3 days or so.

I was thinking of taking about $1000 US, so that I didn't have to start worrying about ATM's right away. I know dollars are widely accepted but also want Rands for tipping guides, food, etc.

Your wise suggestions would be appreciated. Is it a good idea to get money now as the dollar my continue to weaken against the Rand?

You can tip guides in USD. No problem there.....you will just need enough for incidentals.

OR you can carry USD with you and exchange it at the airport bank changing stations.....

Here in India, we expect the Rupee to keep appreciating against the dollar. I don't know about Rands.....

Rgds,
Hari

I don't think it will change enough that you'll notice a difference. And I've never been anyplace that people didn't appreciate tips in US dollars.

Any difference between now and November won't be noticed.

The ATM is still going to give you the best rate of exchange. While you're waiting for your baggage, just dip your card into the ATM and you'll be set. Though you may be limited how much you can withdraw on a daily basis (check with your bank, their daily limit... but realize the ATM in SA may have a daily limit). Get sufficient rand to last 4-5/days and supplement with USD for tips, which we found guides and camp staff more than appreciative of. Local vendors, shops, want their local currency. You can use credit cards at restaurants or for major purchases.

Is it okay to tip guides with newer $20 or $50 dollar bills? Or is it too hard for them to cash the larger denominations?

You think the dollar will weaken against the Rand? What if it gets stronger? But you think the dollar will continue to weaken. Guess you do have some expertise in this area after all :-) Time will tell.
Personally, I'd not like to carry $1,000 in $20 bills. I'll take my chances on which way it will move, so what if it moves even as much as 10%, a $100 difference (that could be either up or down). Is $100 loss going to upset you? Losing $1,000 in cash would give me at least one sleepless night. My philosophy for life - don't sweat the small stuff, $100 is small stuff. "Perspective" is the key word here.
regards - tom
ps - it's the travel agents who sweat the dollar movement. They make trip $$$ quotes now and pay up later. They buy maybe $250,000 in Rand to hedge against unfavorable movement.

I'd second the idea to get rands at one of the airport ATMs. Most places in SA want rands, not dollars. Even at JNB, the porters really got upset if you tried to tip them in dollars.

I gave the porters at JNB dollars and they said "thank you".
regards - tom

I never had an issue with tipping in US $'s. I even asked if they prefered one to the other, and everyone I asked said it did not matter at all. No one asked for me to use rands.

Also, remember to let your bank know that you will be out of the country and using a foreign ATM and double check on your daily withdrawl amount. It was easier for me to get a larger amount per each transaction fee. (my bank charged $3.00 per transaction and the SA bank who's ATM I used charged .70 cents).

Unlike Hills27, I have been many many places where tips in dollars were not appreciated.

In SA, dollars are not WIDELY accepted. It's only in the narrow sector of very high end safari lodges that dollars are acceptable. You certainly don't want to use dollars in Cape Town, Jo'burg, the winelands, i.e. anyplace other than a very expensive safari lodge. A South African can't spend anything except rands -- if you tip in dollars you're asking the recipient to take the trouble to go to the bank and exchange them, losing some of the value in the process.

Maybe it's because I've lived in South Africa, bought groceries and gas and shoes and toothpaste and scotch tape and so on, but the idea of expecting people to want foreign money just seems to me bizarre.

I second the advice of others, Julie, to wait and get rands from an ATM at the airport. It's much safer than carrying a whole bunch of cash.

I never said he shouldn't change money, just that he wouldn't impact him sigificantly if he waited. And if you are in a jam and can't get rand before you have to tip somebody, it's not the end of the world if you tip somebody in dollars. I guess didn't realize the HUGE inconvenience I was imposing on people. Or maybe they overlook it because I tend to tip generously. Regardless, it's better than no tip.

Okay..won't sweat the global economics. I will take several hundred in Rand just to avoid any hassle as we arrive at the airport.

I have traveled a lot in Europe and have never been able to get my bank to increase their $300 a day limit (Bank of America). I always let them and my various charge accounts know that I am traveling. I even have debit and charge cards with my picture on them. (won't help if the thief internet shops, though).

Thanks for the advice, everyone....feel free to keep it coming.

$300??? Wow. That's ridiculous.

Call me old-fashioned, but, i have heard some horror stories of ATM's in Joburg.

What i do is carry USD travellers cheques and encash them at the JNB airport center. It is easy to use, can't be used when stolen and if lost you can always make a claim for it.....i never travel to SA without them!

I have used CC, but only for major purchases.

Hari