How to Convert International Currency
A traveler who cannot convert between his home currency and the local money is poorly armed when shopping or dining. Worse, if the local custom is to bargain instead of pay fixed prices, she can easily fall victim to any shopkeeper who knows an easy mark when he sees one. To be prepared when conducting business in another country, you need to know the current exchange rate and how to convert between currencies.
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Instructions
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Research the current exchange rate. Newspapers publish the rates, and you can find them easily online. If you exchanged currency when you arrived in the country, the exchange rate for cash purchases is printed on your receipt. For example, as of November, 2010, the exchange rate between the U.S. dollar and the Brazilian real is approximately 1.71, so a dollar will buy 1.71 reals.
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Convert local prices to your home currency. Divide the stated price by the exchange rate to convert it to your home currency. A souvenir sweatshirt with a price tag of 50 reals, for example, costs about $29.25: 50 divided by 1.71 equals 29.24.
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Convert your home currency to local money by multiplication to compare prices. If a hamburger at home costs $6.95, then a price of 12 reals (6.95 times 1.71 equals 11.88) is probably reasonable.
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Tips & Warnings
Currency-conversion applications for smart phones are widely available.
Memorize the conversion factor if you can do simple math in your head. Poking at your phone or calculator while bargaining with a shopkeeper is like a red flag to a bull.
Credit card companies add a surcharge for currency conversion. If you plan to use plastic abroad, ask your bank about these fees and include them in your calculation.
References
Resources
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