Exchange rates vary greatly based on a number of factors such as location, type of currency and commission rates. Monetary value fluctuates often and getting the best rates requires preparation. Keep track of these fluctuations by using a currency converter. The best rate is the interbank exchange rate that is negotiated between financial institutions. This can be obtained by using credit or ATM cards for purchases. Some of these cards may charge foreign transaction fee however there are some that do not like Capital One. If using an ATM card, see if your bank has a relationship with banks in your destination. If they do, fees are typically waived. Also, when using a card and given the option to charge the USD amount vs. the local currency amount, opt for the local currency. The interbank exchange rate will not apply if you agree to a set USD amount. It is generally better to exchange cash or travelers checks in your destination country at local banks, post offices or American Express offices. The change bureaus in airports, train stations and other touristy areas will have the worst exchange rates.
And that’s your MJST Prep School Lesson for the Week
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