Exchanging Currency

Most travelers no longer need to exchange currency at all: a bank ATM at the destination does the job at a better rate than a counter. Exchanging still matters in three situations, and knowing which one you are in prevents the expensive version of it. The rule that survives everywhere is to avoid the airport arrivals hall and the hotel desk unless you have no alternative.

What You Need to Know

An exchange transaction has two costs: the rate you are given, which is worse than the rate you read, and the commission, which may be disguised as "no commission" and built into the rate instead. A desk advertising no commission is usually charging you through a wider spread, which is covered in understanding foreign exchange rates.

Where the rates are worst

Airport arrivals halls, hotel front desks, and tourist-area kiosks with a large sign. All three are selling convenience at a moment when you have no alternative, and all three price accordingly. Change the minimum you need to leave the airport and get the rest properly.

Where they are better

A bank, a post office in some countries, or a licensed bureau away from the tourist district. Best of all, an ATM belonging to a bank rather than a private operator, which gives you the interbank rate less your own bank’s fees.

How It Works

When you exchange money you are buying one currency with another at a price the dealer sets. That price sits either side of the mid-market rate: they buy from you below it and sell to you above it, and the gap is the spread. That gap is the fee, whether or not anything is described as a fee.

The board at a counter shows both numbers, and the one that applies to you is the worse of the two. A very wide gap between the buy and the sell figure is the fastest way to judge a desk without doing arithmetic.

What to Do Before Your Trip

• Check whether your destination’s currency can be obtained abroad at all. Several cannot.
• Check whether it can be taken out, since that decides what you do with leftovers.
• Plan to draw from an ATM on arrival and exchange only if that is unreliable there.
• Take a small amount of clean, undamaged U.S. notes if you are going somewhere ATMs are unreliable; some countries’ exchange desks refuse worn or older notes.
• Read the buy and sell figures on any board before handing anything over.
• Keep exchange receipts, which some countries require in order to convert back on departure.

Important Considerations

Street exchange

Do not. It is illegal in many countries, the rate offered is bait, and it is the classic route to receiving counterfeit or withdrawn notes. Only two destinations in the State Department’s country information mention counterfeit currency specifically, and unofficial exchange is exactly the context in which travelers meet it.

The condition of your notes matters

In several countries an exchange desk will refuse a note that is torn, marked or from an older series, and some pay a lower rate for smaller denominations. If you are carrying dollars as a reserve, carry clean, recent, larger notes.

Converting back

Some countries require the original exchange receipt to convert local currency back to a foreign one, and some limit how much you may reconvert. Keep the receipts and do it before the airport, where the rate will be worse and the desk may be closed.

Currency controls

Nine destinations describe currency or exchange controls in their local laws and circumstances. In practice that can mean a legal maximum you may bring in or take out, a requirement to declare, or a currency that simply cannot be exported. It is a short list and an expensive one to be on the wrong side of.

Tips for Group Travelers

• Plan one bank or ATM stop early in the itinerary, rather than letting the group use the airport desk.
• Tell people what a sensible arrival amount is, so nobody changes a week’s spending at the worst rate available.
• Warn against street exchange explicitly. It is offered to visibly foreign groups more than to anyone else.
• Mention note condition if the destination is one where it matters.
• Remind the group to keep receipts where reconversion needs them.

Common Mistakes to Avoid

• Changing a large sum at the airport because it was the first desk you saw.
• Believing "no commission" means no cost. It is in the spread.
• Exchanging on the street.
• Carrying worn or old-series notes to a country that refuses them.
• Throwing away exchange receipts where they are needed to convert back.
• Leaving leftover currency that cannot be exchanged once you are home.

Frequently Asked Questions

Where do I get the best exchange rate?

Generally from a bank ATM at your destination, which gives you close to the interbank rate less your own bank’s fees. After that, a bank or a licensed bureau away from tourist areas. The worst rates are consistently at airport arrival halls, hotel desks and kiosks in tourist districts.

Should I exchange money before I leave home?

Usually only a small amount for arrival, and often none at all. Home-country exchange desks price for convenience. The exception is a destination where ATMs are genuinely unreliable or the currency cannot be bought locally, where arriving with something is worth the worse rate.

What does "no commission" mean?

Usually that the charge is built into the rate rather than shown separately. Compare the buy and sell figures on the board: a wide gap between them is the cost, whatever the sign says. A desk with a narrow spread and a stated commission is frequently cheaper than one advertising none.

Can I take leftover currency home?

Often, but not always, and some currencies cannot legally leave the country at all. Nine of the destinations covered describe currency or exchange controls. Where restrictions apply, convert before you reach the airport and keep the original exchange receipt, which some countries require in order to convert back.

Is it safe to change money on the street?

No. It is illegal in many countries, the advertised rate is the bait rather than the deal, and it is the usual context in which travelers are handed counterfeit or withdrawn notes. Use a bank, a licensed bureau or an ATM, every time.

Related Travel Tips

• Money, currency and payments, the section this guide belongs to.
• Understanding Foreign Exchange Rates. Why the rate you get is not the rate you read.
• Using ATMs Abroad. The cheaper route.
• Customs and Immigration Basics, for declaration thresholds at a border.

Plan Your Trip With LABUSA Travel

Whether a destination’s ATMs are dependable, whether its currency can be bought abroad and whether note condition matters are exactly the kind of detail that is obvious locally and invisible from home. LABUSA Travel supplies it before departure.

Talk with a LABUSA Travel advisor about a trip you are considering, or browse our destination guides for a specific country.

Verify Before You Travel

Currency and exchange controls are set by each country: confirm them with its embassy or consulate and check the U.S. Department of State country information. Official reference rates are published daily by the Federal Reserve and quarterly, for U.S. government reporting, by the Bureau of the Fiscal Service. This page quotes no exchange rate, because any rate printed here would be wrong by the time you read it.