How to Exchange Money in a Foreign Country

Most businesses in foreign countries won't accept U.S. dollars as payment for goods or services. Although you can use your credit card in foreign countries, not all places will accept your cards. Instead, you'll want to exchange at least some of your money for the local currency.

Difficulty: Moderately Easy

Instructions

1. Research the current foreign country exchange rates. Before traveling, you should find out the rate to expect when you arrive. You can use an online rate converter, like the one found on OANDA.com (see Resources below).

2. Exchange your money at the airport or hotel. You'll want to use the safest locations to exchange your money in a foreign country. You can also go to a local bank to make the exchange. If you have time, you may want to compare rates and fees posted at each location.

3. Look at the fee for exchanging your money. Prior to exchanging money in a foreign country, inquire about the transaction fee charged to make the exchange.

4. Consider traveler's checks. Many locations in foreign countries accept traveler's checks, and you can usually get a better rate on this type of currency than you can for cash. Another benefit of traveler's checks is that you can get the currency prior to departing.

Tips & Warnings

• You can also use an ATM terminal in a foreign country to exchange your money. Follow the instructions on the ATM after inserting your bank or credit card. However, your bank may charge you a hefty transaction fee.
• Banks or exchange bureaus in the U.S. can sell you foreign currency before you leave for your trip.

Resources

• Use the foreign country currency calculator on OANDA.com.