Exchanging Euros for Dollars
 

I am finishing a trip in Berlin and will have about 100E remaining. Question is how and when to convert: before I depart at a Berlin bank or wait until I arrive in US. Any advantage either way, or is it a wash.

Hello baymtnman, this question comes up from time to time. Will you be going back to Europe at some point in the future? If so having 100E to take with you on your trip would be a great advantage IMO.

If you know you never will go back to Europe if you know someone that will be going to Europe in the future you could "sell" them the Euro so that they can take it to Europe with them. Before the Euro my friends and I use to do that...sell each other the various European currency. It worked out great. Best wishes.

The theoretical answewr is pretty clear. Any major shopping street in any large European town will have a number of competing exchange facilities, all declaring their rates openly (though sometimes it takes a bit of work to do the sums).

That free, competitive market inevitably means better rates (both ways) than you're likely to find in SAmerica, where consumer forex just isn't a market retail banks and the like bother taking very seriously.

BUT: here's the problem. You'll probably get a couple of dollars more by selling them in Berlin. But how are you going to get to the airport? No coffee? You aren't going to buy a paper? If you're starting off in Berlin, what will you do at the intermediate airport?

You won't get the calculation 100% right. And we're talking tiny potential savings here anyway.

SAve your mental energy for something more important, and keep the euros for next time.

I will already have the necessary euros for the taxi, coffee, etc. Just the final touches will not consume the 150E I have in my pocket, I budgetted about 10 for the taxi and 15 for the coffee, etc. at the airport. So, about 100 will remain, and I can exchange that anywhere in Berlin-which makes sense.

OK..go ahead and exchange them if you must but if you do ever returnto Europe you may wish you had simply held onto them.

An alternative would be to use them at the airport to buy some gifts for those back home but I realize that may not be in your "budget."

Although I have never studied this seriously, wouldn't it make sense that the best exchange would be where dollars are printed? Isn't that the same logic as to why "we" assert, as to why euros can be purchased at a better rate... where they make them?

We must have enough European residents, here on this forum, who can address this... when you travel to the US, is the buy rate - - to obtain US dollars from a cash purchase with euros - - better here than in Europe?

Best wishes,

Rex

I think you should bring them home. Once you are home you can
a. Use them on your next trip
b. Exchange them at a bank here
c. Sell them to someone else who is going to Europe using the market exchange. Both parties will profit from this.

Also by keeping them you will have extra cash in case you need it before leaving Europe. You say you have enough cash left for the taxi, coffee, etc., but life is unpredictable and you might need more cash than you think.

Whatever you decide, the difference will be very small.

It is always nice to go back knowing you've got taxi fare already. I know it really is not, but it seems like a free ride!

rex, the exchange rate for cash that is used by many of the money exchangers in the street is fixed every day in Frankfurt at midday by the EU central bank. All the central bank does is look at the charts of the 24h worldwide computerized trade Mo. to Fri., fixes the rate and adds a spread between buy and sell. On that the money exchanger adds a certain amount as profit which can differ. There is no difference where you buy or sell your cash except for this difference in profits. Nowadays most places use the fluctuating rate when you do the transaction. 25 years ago it was easy to make a profit. It the $ has risen considerably overnight, you simply went to the Bank before 12 o'clock and bought $, for yesterdays rate and sold them again in the afternoon for todays rate. I made extra pocket money that way :-)

If you bring them back to the US you will likely lose up to 30% on the exchange rate--not an inconsiderable amount. If you are paying a hotel bill at the end of the trip, use them. Buy gifts as others have said. If you bring them back, sell them to someone who is going, at the prevailing rate.

Exchange them for chocolates and gin at the airport like I do.

You are suggesting that the OP buy €100 worth of chocolate??

Sounds good to me. :-)

Don't forget the gin.

Buy a Coo-koo clock. 100E doesn't matter what the exchange rate is, won't last. The clock will be the envy of all your friends!