One non-negotiable reason for traveling to the USA is exchanging your Aussie dollars for USD. This involves following the exchange rate, researching exchange fees, and determining how long it’ll take for the exchange to process. This can all be pretty overwhelming for newbies to the exchange game, and they might go for the first exchange they see, which isn’t always the best idea!
This article will give you some tips to make this process easier.
Keep an eye on the exchange rate
Depending on politics, economics, and other issues, exchange rates can drop and rise overnight. The first thing you’ll want to do when traveling internationally is check the exchange rates. For instance, if you’re traveling from Australia to the US, the current exchange rate is $1 US to $1.5 AUD. This means that for every $1.5 AUD, you’d get $1 in the US. At this stage, the US dollar is stronger than the Australian dollar.
We’d suggest watching the exchange rate for some time before doing your exchange. Waiting has two sides. Waiting might cause the exchange to go up, favoring the Australian dollar, which could mean you end up with more money after the exchange. However, it could go the opposite direction, too, with the US dollar strengthening more against the Australian dollar, leading to you needing more income to match the conversation amount you need.
Remember conversion fees
When exchanging currencies, you must also factor in the conversion fees. These are the fees charged by the institute for converting the currency. Some exchanges have some heavy fees that can be a big shock when you exchange your cash. That’s why it’s important to factor in these fees when making the exchange, so you can add additional funds to cover them if you need to. Shop around as well. Look at different exchanges to see who provides the most suitable exchange fees. Don’t just go for the first exchange you see.
Purchase foreign currency before leaving your country
Start doing your research early and try to purchase currency before you travel. It has two benefits. Firstly, it gives you time to consider different exchanges and compare their fees, and secondly, you don’t have to waste time trying to find an exchange when you land because you’re already sorted.
Using the example above, we’d suggest buying US dollars before leaving Australia, especially when the exchange rate is high! Then, when you land, you’ll have everything you need.
Another option that falls into the same line is sending money to your destination ahead of time. There are exchanges worldwide that you can go to, deposit money, and exchange it for your chosen currency. Then, when you arrive at your destination, you find the same company and withdraw your money. It’s easy. This will ensure you still have funds if your luggage is lost or someone steals your wallet. But it would help if you ensured that the exchange you use has branches in the country you visit for this to work.
Always have backup funds.
Ask any seasoned traveler; they tell you that you should always have some loose cash in an emergency. Most of the world has adopted more modern payment methods like tapping to pay or scanning a QR code, but this technology isn’t everywhere. You might come across a store that requires a cash payment, and if you don’t have cash on you, you’d need to find an ATM, which means extra fees and time spent.
Having some extra cash on you can be a lifesaver when needed. Be sure always to keep it somewhere safe and in your person. As we said in the paragraph above, luggage can easily get lost, so you don’t want your backup cash to be lost along with it.
Err on the side of caution when exchanging money.
If you need a currency exchange in the country you’re visiting, be cautious with where you go! Beforehand, research a few reputable cash exchanges in the country and try to find the closest one if possible. Don’t go to any old currency exchange on the side of the street.
Likewise, avoid airport exchanges as well if you can. Their fees are generally higher. Withdrawing money at an ATM is an option, but once again, fees will come off your account for the exchange.
Final Thoughts
It might not seem very clear the first time you use a currency exchange. But, if you research and find a reputable exchange, the process will be much smoother. Watch the exchange rates closely to get the best rates; you should be all set!
