By MOOK Scenic Spots Family Editorial Team, compiled and reported
Before traveling abroad, exchanging currency becomes an important part of pre-trip preparation. Especially for independent travelers, exchanging at the right time can save a lot of money. There are many things to note and skills to master when exchanging other countries’ currencies, which travelers might want to keep in mind to make pre-trip preparation easier.
Exchange tips can save a lot of money and help avoid problems (Image / pixabay)
1. Understand the exchange rate table
Before purchasing foreign currency, you must first understand how to read the exchange rate table. For example, the cash rate is the price for directly buying foreign currency notes; the spot rate is applicable if you already have a foreign currency account, where the purchased currency is deposited directly into your account rather than given as cash. In addition, checking historical exchange rates can also give you a better idea of whether the current price is relatively low or high.
2. Make use of bank wealth management account discounts
Most domestic banks offer wealth management accounts, which allow you to buy foreign currency at the spot rate. When traveling abroad, you can directly collect the cash over the counter without needing to cover the difference between the cash rate and the spot rate. Travelers might want to consider such services.
3. Apply for a foreign currency account
Frequent travelers to Japan might consider applying for a foreign currency account. This allows you not only to monitor fluctuations in the yen’s price and buy when it’s low, but also to enjoy higher interest rates and waive transaction fees. At the same time, you can also make good use of various foreign currencies you hold, and may get a favorable rate through cross-exchange.
Understanding the exchange rate table and observing historical trends is also very important (Image / pixabay)
4. Avoid informal currency exchanges
Many travelers may need to exchange currency on days when banks are closed, and might turn to hotels, shops, or small vendors for foreign exchange. Since these merchants cannot confirm the exchange rate situation — including being unable to confirm Monday’s rates on weekends, or facing worse rates for exchanges done in the afternoon compared to the morning — there are certain risks involved, so they should be avoided as much as possible.
5. Exchange in installments to hedge risk
Similar to the concept of regular investments in financial planning, exchanging currency in installments can help spread out risk and avoid being affected by fluctuating prices.
Blue Bottle Coffee’s Christmas-limited must-have item is here – the year’s most literary gift box has arrived
》https://www.mook.com.tw/article.php?op=articleinfo&articleid=16702