Losing money when you travel abroad?

Posted on February 2, 2008
Filed Under finance |

How do frequent travellers get by, knowing that they will most likely lose the value of their money during travel due to the changing currency exchange rates? “What’s today is not tomorrow” – The same philosophical law holds for these rates! In addition to the changing rate, each financial institution has its own rate for conversion which is almost definitely lesser than what you think it ought to be! Just see for yourself the daily fluctuations in currency rates onYahoo Finance

There’s even a funny video from Visa card on currency exchange:


Another observation is that irrespective of destination, people keep USD in hand during a journey (but may be not in Europe) which may amount to two conversions to get the currency of choice. This causes the money value to depreciate at both times of exchange.  Traveller’s cheques seem to be a much better option as the conversion to final currency is done just once, there’s lots of it available and it’s safer than keeping cash too.

I wonder if this really is an issue of concern to individuals. Comments invited.

Comments

One Response to “Losing money when you travel abroad?”

  1. Sandeep on February 2nd, 2008 10:51 pm

    I think the best option to keep all your savings in Gold !!!

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