The Currency Exchange Rate and Your Travel Plans

When should I exchange money to get the best deal?

Most vacations plans are made months ahead of the actual event. Hotel reservations must be made and local attractions must be researched and studied. Eating is always important on vacations so restaurants, cafťs, pubs and nightclubs also become part of the planning process. Money is always a vacation issue unless you recently won the lottery, so you establish a budget for the trip. Traveling to another country on vacation is exciting but it can be frustrating as well as expensive, if you donít understand how the currency exchange market works. Waiting until the last minute to exchange currency or exchanging money in your host countryís airport on arrival can ruin your vacation before it starts, if the trading pair youíre exchanging has changed in value.

The global financial market is always moving and currency values reflect that movement. Exchanging all your money at Dubaiís International Aiport when you arrive in Dubai for some well deserved R&R may take a huge bite out of your budget if youíre exchanging Dollars for Dirhams and the Dollar is weak globally. An 1100 point difference could cost you $110 for every $1000 you exchange. That may be the difference between eating in good restaurants and eating fast food everyday. The best time to exchange money is when youíre planning the trip. By exchanging small amounts of money at different times in the planning stages you know exactly what the trip will cost. Averaging is especially important on extended trips because more money is needed to cover your expenses.

Where should I average my exchanges?

Most people assume that banks give them the best exchange rate. Banks are convenient, but may not be the best place to exchange money. All banks charge a fee for every exchange plus they may only post a morning rate and an afternoon rate which means you may not get a real time exchange rate. Credit card companies use their own rate which includes their profit, plus they add a surcharge to every travel purchase so you donít know what the trip costs until you get the statement and thatís always a budget buster. An airport currency trader may add a hidden fee to the rate which means you have less money to spend on vacation.

A reliable currency trader can help you average your exchanges while youíre planning the trip, so your budget is based on real time rates which means there are no extra fees, surcharges or bogus rates.

Other travel thoughts

Always carry cash in a money belt or a hidden pocket thatís secure and out of sight and use hotel safes and other security measures when you arrive. Wallets and purses are easy targets so just carry enough cash in them for small purchases. Passports and other identification should also be carried in a secure place. Some countries limit the amount of cash you can carry through customs. Itís a good idea to know that limit. Your cash may be confiscated if a customs official discovers youíre over the limit.

How much Dubai currency you need?

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