Thread: Purchasing foreign currency

I have always found it is better to change your $AUS for whatever currency you need, in the country you are traveling to. For instance if you are going to Thailand you get a more favourable exchange rate in Thailand than here in Australia. Not sure if this would apply traveling to the USA. If you are going on a crulse and the shipping line only accepts American dollars then you would need to exchange your money before you set sail because exchange rates on board the vessel are not very friendly either.
I would be surprised if a shipping company only accepted USA currency though unless local cruising. Usually one uses a credit card on board or deposits an amount of cash in an account to work from at the Pursers office.
I guess the only other way would be to watch closely the exchange rates and try to grab some US dollars when the rate is in your favour. Just remember you will not get the rates that are mentioned on the TV or in the newspapers, those rates are the best rates of the day. You will usually get the other end of the spectrum, the worst rate of the day and banks have a charge for exchanging your money. You can also exchange money at the Airport but again at a cost. You can't win mate.

Not sure about USA or cruises, but I too change currency at the other end, although I do ensure I have at least $100 worth of there currency in my wallet on arrival. I've actually used my normal savings card in the bank teller machines as the exchange rate worked out better and it was very convenient - you just need to ensure this can be done with your cards.

Although last time I went anywhere it was well and truly last century, I just had a small amount of actual cash and a credit card. I guess you need to check how you can actually purchase stuff on the cruise.

Never been on a cruise but have travelled extensively in UK and Europe.
Always get a small amount of local currency before leaving home and put the rest on credit cards. Put extra into credit card A/c before leaving home and never had to pay interest..

On a cruise you can use Credit and the bill at the end of the trip is usually calculated in US dollars. Your bank in Australia should then bill you according to the exchang rate ontthe day of each purchase.

I have been an expat from the US for the last 20 years and the most reliable consistent exchange rate is is from the ATM machines. You get the best bank rate.

Originally Posted by Grumpy John

Do any of you seasoned travellers have any advice on purchasing foreign currency (in particular US$). It seems to me that you get ripped at both ends. I'll need some US$ when I go on the cruise in May so I am not under pressure to buy any cash immediately.

You've noticed. Travellers cheques are becoming obsolette.

the banks now offer a thing called a travel card which you use in an ATM. Problem is there's a fee, sometimes as a percent, to put your money on the card and usually a fee to get it back as cash. AND the risk of theft is all yours.

using a credit card will work, but be prepared for the "foreign exchange fee" which, depending on the card, can be up to 3% per transaction. I don't know why, but US domiciled credit cards don't seem to be charged this fee.

be aware that personal service providers, taxi drivers, hair dressers, waiters, the guy who carries your bags to your room, etc, all expect to recieve a tip,. In a restraunt the tip is usually 10% of the bill, and if you are in a place over shift change, you are expected to tip to the waiter going off duty, not the last one to refill your coffee cup.

You could look at a cash passport card (foreign denominated Visa) which you load up before leaving, it loads in the currency on the card and you withdraw as you would at home. The initial load up is at a good rate. Available from travel agents and banks its not a bad source. Your visa card will work Ok on purchases, the exchange fee is not to bad, and you can use your own hole in the wall card. If it is linked to other accounts you may have a problem with it defaulting to your credit card and not taking from savings as you can at home. Travellers cheques are still well accepted in the US but the other alternatives hardly make them worth considering.

John when i went overseas i just used my Mastercard - i didnt have exchange rate problems at all.





























































Tassie is overseas isnt it?

Originally Posted by Calm

John when i went overseas i just used my Mastercard - i didnt have exchange rate problems at all.

Tassie is overseas isnt it?

You are quite right. They don't charge us an overseas transaction charge to use our overseas(big island) charge cards here either. One dollar (here) = one dollar (there).

Thanks for all the replies (with one exception, you know who you are ). I was planning on using my debit/visa card for most purchases while on the cruise and on shore, but I wanted to convert about $500 before I left Oz, so I would have some local currency when I got to L.A. I was really looking for tips on whether the banks were a better option than the currency conversion booths that are located at many shopping centres. My fault for not explianing properly in the first post.

For smaller amounts of cash Aussie Post is sometimes OK, there are ATM's at the airport at the other end and that is probably your cheapest option. Converting to US dollars here involves a charge beyond its worth considering the age we live in. The currency converters at the airports remain a rip off compared to just about anything else.

Originally Posted by Grumpy John

I was really looking for tips on whether the banks were a better option than the currency conversion booths that are located at many shopping centres. My fault for not explianing properly in the first post.

Use on of the big 4 banks.
I'm not sure if it's still the case, but the big 4 used to update their exchange rate at about 10:00 AM (Sydney / Melbourne time) each day.
The trick was to listen to the radio and to find out if the "official" rate had gone up or down the previous day. If down get in when the doors first open. If up, go in after lunch