Avoiding a Currency Crisis

Before attempting to understand currency exchange rates, it is important to know what a currency exchange rate really is. The term "currency exchange rate" essentially represents the value of a particular country's money in comparison to another country. A country's monetary value often fluctuates and is heavily dependent upon the strength of their economy at a particular point in time. 

As we all know, communication is a significant barrier when traveling to foreign countries, especially when there is a language barrier preventing you from communicating effectively. However, it is important to be aware that money can also be a significant barrier to traveling. Currency exchange rates can be extremely confusing for individuals traveling in various countries because there are various currencies used around the world. Although the euro is commonly accepted throughout Europe, many countries have other preferred currencies and even the euro can be confusing to work with if you haven't had a lot of practice.

Check out the steps we have listed below to avoid a currency crisis while traveling abroad!  

Step One: Determine the two currencies you will be working with. Select the currency you will convert from and the currency you will convert to.

 Step Two: Research the rate for converting your money in the new currency. Each country’s conversion rate can be found online.

 Step Three: Establish the relationship between the two currencies. Be aware that when you are converting money to a stronger currency, you will lose some purchasing power in that particular country.

 Step Four: Visit your local bank to convert some of your money to the local currency before leaving for your trip. Exchange rates tend to be much higher in airports or hotels, which may be your only option once you have arrived at your destination.

 Step Five: Be aware of surcharges that may be required to convert money. There may be a percentage rate on the transaction or a flat rate to complete the transaction.

 Step Six: Contact your credit card company to inquire about exchange rates and fees when using your card. Exchange rates and fees will vary by company. 

Banking Abroad!

Currently, $1 in United States currency, when exchanged, would give you 0.73 euros. 

These discrepancies in currency can lead to problems when traveling and it is important to keep track of your bank account.  This can help you catch potential overdrafts or identity thefts, which are common problems that can arise while abroad.  

With the expansion of mobile technology, many major banking branches now have cell-phone applications that allow you to bank on the go!  These are extremely helpful when you are abroad and do not have the convenience of your local bank.  These applications allow you to complete many important banking activities; such as transferring money, tracking purchases and checking your balance. 

Personally, I have fallen victim to the pitfalls of spending abroad.  I love to shop and traveling opens your mind and wallet to many interesting experiences and purchases.  Having your card declined is embarrassing when you are at the mall at home, but it is far worse when you are in Australia and didn't realize that you had over-drafted your account.   These differences in currency amounts through exchange rates can cause you to miscalculate just how much money you have left to spend! 

By downloading these applications to your mobile device, you can save yourself time and hassle and make the most out of your travel! 

https/www.wellsfargocom/mobile/apps