Foreign currency
 

Y'all
I went to my bank to purchase some foreign currency for my trip. The rate is so low comparing to the currency rate posted on the internet. A friend told me to wait until I get to the country like China, Vietnam or Singapore. The rate is much better there. Is that true? Where do you suggest I should get me money exchange?

the best way is to get it at the airport from ATM. Check your banks foreign ATM fees first.

Yes, you are always better off getting currency in its own country. As krgystn says, check on what your bank charges for foreign ATM withdrawals and on foreign exchange. Many currencies aren't available form your bank, like VN dong.

In February last year, two weeks prior to setting off on a 5 week Thailand/Cambodia/Thailand trip I changed £200 into US$. That'd allow us to get through the first couple of days or so when we arrived in Phnom Penh. I changed the money at our local Thomas Cook, and got £ = $1.55.

Three weeks later, when we arrived in Phnom Penh, I went to the Canadia Bank (best exchange rate) in town, and the exchange rate had dropped to $1.48, and by the time we'd left Cambodia it dropped further to $1.462.

You will (should!) always get a better 'on the day' rate once you've arrived in the country, but if you need to buy currency before you set off then the scales could tip either way. In my case if I'd have known I would have benefited by 7 cents to the £, then I'd have changed a lot more than £200!

It's $1.67 at the moment, and getting better!

LL is quite correct that you can't anticipate day to day changes in currency rates, but you will always pay a premium to buy foreign currency in your own country.

That's very helpful. How about Cashing Travel Checks at the local hotels, or banks? would you recommend that?

That's very helpful. How about Cashing Travel Checks at the local hotels, or banks? would you recommend that?

IMO, travelers checks are more trouble than they are worth. Many places don't want to cash them.

I wouldn't bother with traveler's checks. Very old fashioned. I actually saw a sign at a store in my local mall today that said they'll stop accepting them next week. Personally, I stop at the airport ATM when I land and pull out a bit of local money and use my credit card for most transactions.

Remember to let your cardholders know when and where you'll be so the cards will work.

I have a credit card with no foreign transaction fee. Check to see what yours is and consider getting one without a fee if you travel often.

ATM machines are all over the place, operated by local banks and international companies such as HSBC and ANZ. Every time you change currency it costs you a discount on the exchange rate and possibly a fee, so changing to US $ adds extra expense for no advantage. Nobody outside high finance obtains the published exchange rates, which resemble wholesale. Moneychangers make profits by selling to you high and buying back low.
The real challenge, in my experience, is changing dong back to whatever your home currency is. Nobody outside Vietnam wants dong so the departure airport exchange booth is your last resort for leftover cash (or buying souvenirs from the airport gift shops.)
For security, I carry two ATM cards and two credit cards, based on separate chequing accounts in different banks. And I never carry them all in one wallet.

I just got back from the trip. Some of you are correct about Traveler Checks. Vietnam doesn't take Traveler check anymore . China charges a hefty fee (~$US10) per check. I used ATM most of the time. My bank charged 1%. The ATM fee varies from 0 to $US5. About changing the local currency back to US, I've learned to do this: When I checked out the hotel, I estimated how much local currency I need for taxi, then paid the hotel with all the remaining currency I had left; and the rest with a credit card. My last trip to 4 countries. I came back with practically no local currency.

Yes, that is a great way to get rid of foreign currency. I often do that as well.

I hope you had a wonderful time!

Not a perfect science though.
If it works it's a good feeling, and you want to tell the world.