Euros vs.Dollars
 

Today at a bank in New Jersey I was quoted a rate of 1.31 if I wanted to buy euros, despite the fact that the rate in the papers was 1.22. I'm going to Paris soon. What rate can I expect to get. I know it changes daily. Anyone with experience recently on exchanging dollars for euros?

Do not exchange money. Simply withdrawal money from an ATM machine when you reach the country. Be sure to get as much as you need and don't use it more than you need though because most banks will charge a $3 (sometimes more) fee for the service.

But, you get the best exchange rates and least hassle using ATMS.

That rate in the newspapers is the so-called "inter-bank rate" or the rate that banks use when THEY exchange currencies amongst themselves. Traditionally, the rate you and I have to deal with is less favorable.

I strongly agree with getting currency from local ATMs using your checking/savings account "debit" card. You may wish to exchange a SMALL number of dollars prior to departure..enough to get you to the first available ATM, often at the airport. Do this and you'll be much better off financially since the ATM exchange rate is the BEST one you'll get anywhere as a rule.

I agree totally with sppunk! Most
ATM's overseas charge $1.25 per transaction and give good exchange rates.
Credit cards can be OK if they have the Min 1% (my Citi MC AA charges 3% so I don't use it outside the US) charge. USAA Savings V and MC charge 1% and I, perhaps irrationally, think they have a better exchange rate, 'tho it's supposed to be the same each hour of each day.
Check your CC before you use them overseas.
You'll prob get 1.25 @ today's rate at best.
Thank the FR and German socialists and their crazy economics for that - we visitors support that nonsense.
M

Why do you say thank the French and German socialists...international monetary exchange rates are not dependent on one factor. How do you explain the fact the GBP is fetching $1.83 on international exchange markets?

One of the big contributing factors to the weakness of the USD is that the US administration sort of doesn't mind it this way. The President is hardly a genius when it comes to economics so he allows Greenspan to set the tone. And those Americans who own homes and are paying almost the lowest interest rates in history for mortgages are part of the so-called problem if indeed it is a problem in its totality.

Basically, you can't have your cake and eat it too. Do remember the original intention of the Euro was to trade at about $1.17 US so it's not that far above where it was "supposed" to be...the abnormality is when it somehow sunk to $.85 US.

Actually, there will be no charge by the owner of the ATM in Europe . . the charge will be from your bank.

You will get a rate that is very close to the Commercial Rate ( InterBank Rate ) so the fairly small charge by your bank will still net you the best exchange rate available.

Rich

<<ATM's overseas charge $1.25 per transaction and give good exchange rates.>>

That has never been my experience in any European country. If you're being charged a fee for ATM use, it's not a European bank that's charging it - it's your own bank.

Rich is quite right about the ATM charges. It's your bank who's charging the fee, not the European bank that you're making the withdrawal from.
Also, the 1.22 exchange rate you read about refers to the rate overseas; you'll always get a much worse exchange rate for euro in the US.

Two factors on the exchange rate:

the euro will always cost more in the US than in europe on the same day

the rate in the newspaper in the bank rate - and applies only if you are a bank changing millions of dollars at one time

Agrre the most sensible thing is just to draw cash with your ATM card in europe

I agree with XYZ....

The unfavorable dollar/euro transaction rate is pretty much stagnant where it is because of the lack of attention from the Administration. However, with the economic power of the Euro right now, the dollar is less interesting to foreign investors...it will stay this way for a while. Sad to say for those of us who are used to favorable exchanges but it will probably stay this way, I think. Good for the EU, is what I say.

How much money would someone recommend switching locally into Icelandic Kroner before leaving to spend a day there? Maybe 70 USD, and then use ATM at Keflavik upon arrival? We are only spending a day there...and hotel will be on credit card. Also, should we change leftover Kroners to Euro's at Keflavik, and then in Frankfurt pick up more Euro's at an ATM?

Use the ATM's when yoou arrive in Iceland. Since it's about 70 ISK to 1 USD, if you use an ATM you should probably take out about 5000 ISK in an ATM..since the ATM is pretty close to the actual exchange rate, assuming you're smart and using a bank that is charging the proper amount for an ATM withdrawal which is $0, any left over ISK can be exchanged for Euro when you arrive in Euroland and you will not have lost all that much except what the Euro exchange rate would want to charge you as you will have to use a currency exchange for that...

The advise is just use tha ATM's...there is no need to worry about it before hand and sort of be aware of the value of the foreign currency as the ATM's only deal with foreign currency.

topping

Some banks in the UK and Ireland charge fees to use their ATMs, but I can't speak for the rest of Europe. My US credit union does not charge a fee for international withdrawals, but my UK bank does.

There is such a big push and "popularity" to use ATM's overseas...and they ARE easy and convenient HOWEVER we just order euro or pounds from our bank in the US prior to a trip, and estimate what we will need....(but in checking with other banks or options they are all with a few cents) and the rate is ALWAYS more to "buy" than the rate quoted the paper etc.However still within range of what you would pay at an ATM machine oveseas and sometimes less. Having the euro(yes plural is still euro they tell us in Europe) in your pocket when you leave home makes it so convenient...I carry some in my purse, my husband carries some..and we have never had a problem. ( we are never out late at night) If you have some left at the end just pay the last night hotel with it and charge the rest ) OR if you come up short,THEN use an ATM machine.
True, as from a person above...USAA (and perhaps others...call around)credit card charges only the 1% MCard conversion fee (others charge that PLUS their own 2%, making 3%). We were very statsfied with what it turned out to be last month in UK,as we did use credit card for most of our 10 accommodations,and the bill just arrived yesterday)

What a batch of ignorance on this board. Cut the anti-American and anti-Bush rubbish and deal with some facts.

Here are some of the reasons for the "weak" dollar: (1) the Bush Administration WANTS the dollar weak because it thinks that will aid US exports -- this has been proven correct to a degree that has alarmed Germany's Schroeder but not to the degree that the Bush Administration hoped; (2) the US interest rates are incredibly low because the US wanted to jumpstart its economy which was in a downturn at the end of the Clinton years and which took a plunge after the terrorists destroyed the WTC, this has been proven largely true -- expected US growth for this year is 4.5%, expected Eurozone growth for this year is 1.7%. The low interest rates mean less US treasury investments from outside the US because of the low return rate. (3) European interest rates have been artificially high by comparison with the US and the Eurozone has refused to lower its interest rates despite lagging economic growth, thus encouraging speculation in Euro-based bonds.

I don't see anything in the simple question about euro vs dollars about "why is the dollar weak" ? It's a simple question about exchanging dollars for euro.
So I wonder why BigRuss is trying to explain his theory about the weak dollar???.
And the first sentence on his reply was not necessary ...but I will hold my comments as to what he might be.
Bottom line....people seem to sometimes get WAY off the subject on this forum!!!!! (as I just did, SORRY! (:>)

Here goes again with some misinformation on the board...

It costs much more to exchange USD for Euro or Sterling in the US. It is buried in the rate. Today the rate for the Euro hovers around $1.22. Use an ATM and you pay $1.23221 (the ATM usually marks up 1%). Try getting Euro in the US today for anything less than $1.31. That is an 8% difference; not just a few cents. Now if you are paranoid about ATM's and want to exchange all your money before you leave and don't mind going from bank to bank or walking around with large amounts of cash, well that's tossing money away basically and for what "convenience?" This is the year 2004 and 21st century technology works very very well thank you. Upon arrival at any international airport, I have to wait far longer for my baggage than to use an ATM. If the ATM is down, (and it has never happened to me) then I reluctantly change a little bit of good old US cash for local currency, bite my tongue and take the loss. But I am sorry, I just don't see the convenience everybody talks about what with having to run around at home to get currency.

As far as ATM charges, it is very simple. A requirement of the Cirrus and Plus networks is that member banks cannot impose a surcharge for having the audacity to use their machines on any debit or ATM card issued by a bank outside the country. Thus British banks may impose charges on other British customers using an ATM not theirs, US banks may impose a charge on other US cardholders but they may not impose the charge on cardholders from a different country. Therefore British banks, using the Cirrus or Plus systems, do not and are not allowed to charge a US cardholder for withdrawals from their ATM's just like US banks are not allowed to charge British cardholders for withdrawals from their machines.

Some Canadians have told me that when they go to ATM's in Texas, they are charged the fee by the issuing bank. The only way I see that they can do this is by using a different shared teller networl than Cirrus or Plus.

Therefore, when US cardholders withdraw currency using their US ATM or debit cards, the charges they incur are those their bank chooses to rip them off with. And these charges range from $0 (the correct fee) to as much as $5!

Just a caution: buy enough Euros in advance before you leave (around $75 worth) in case the ATM at the airline terminal isn't working and the line at the currency exchange is very long. That way you'll be able to pay for a taxi to get you into Paris. Getting stuck without local currency is no fun.

Underhill..

Sorry to tell you but 99.9% of the cabs at CDG take credit cards, car services take credit cards, the RER takes credit cards. I assure you that even if you don't have local cash if the ATM's happen to be down (a very rare occurrance or the queues are too long at the currency exchange) you will be able to cope.

The French learned their lesson several years ago. There was a strike of the drivers delivering currency to the banks. While some think it was just against the ATM's, it was actually against all banks. There was a shortage of paper currency throughout the country. So you know, they all started taking credit cards for as little as 5 or 6 francs. That is why today the RATP takes credit cards for all fares as low as €1! It can be dealt with although chances are almost 99% certain it won't be a problem.

The one time I arrived at CDG w/o any euro, the ATM was down, and I, too, had no problem getting a cab.