Exchange rates

[Jarronwood]

I know my cruise is not until next February (flying from the UK) but I have been looking at exchange rates and was wonderig whether to buy some dollars now here in the UK since the exchange rate is $1.89 for every english pound. The dollar rate is really good and it is always fun to wonder whether to buy now or wait since no one really know which way the dollar/pound will move.

 

However my question is this. I know when we have gone to Bulgaria we always wait to change up our pounds since there is a huge difference in rates from buying here in England to buying in Bulgaria. So much so that in England you can buy 2.40 levs to one english pound where in Bulgaria you buy 2.85 to one english pound, making a difference of 45 pence and add that to say £500 pounds is a few levs more for you money.

 

So based on todays rate for the dollar, what is it to buy over there. Is there much difference?

 

Your advice and experience will be gratefully received.,

[uktog]

Bulgaria is a much more volatile currency than the dollar. It would also depend in the US where you are doing the exchange - I am assuming rather than spend time finding best place to change you will be doing it on board ship.

If it helps, we are buying some dollar traveller cheques just now - safer to keep than notes. We can then either use them towards our on board bill or cash them for notes to have on shore when we are away in October. We will not buy all our currency needs now and of course we will still have our credit cards with us. We start the cruise with the view that the entire on board bill will be charged to the credit card and then towards the end, depending on what travel cheques we have left, reduce the on board bill accordingly. Rememebr to watch using the credit card abroad - Nationwide is about the only one that does not penalise you with 2% handling charges

[greydog]

Early this summer with ship hitting Euro ports, you could buy Euro on ship at about 4% exchange premium. At hotel the fee was closer to 5%. I would expect ship arriving in UK would sell pounds. HOWEVER all had to pay cash $, not use credit card or ships charge, for FX transaction - but you can withdraw cash from casino via ships charge.

 

When I researched this issue for my trip MOST folks and travel guide Rick Steves recommended withdrawing foreign funds via ATMs. Steves always used to use Travelers Checks but now exclusively ATMs.

[C 2 C]

Anyone who could give you the right answer is not wasting time reading these boards... he's at work making millions..

 

Currencies fluctuate. If you are buying a good currency, hedge your bets and buy a $100 a month or whatever you are comfortable with. You can always get rid of dollars.. Levs do not have much of a following unless you travel there again.

[Host Walt]

C 2 C is right, up to a point.

 

Currency hedging is a very dicey activity and many sophisticated professionals have been burned badly by bad guesses.

 

For your situation, there has been some speculation by currency traders that Sterling will continue to rise with respect to the US Dollar to the point that the old (30+ years ago) pegged rate of $2.40 per 1 GBP could return.

 

The speculators who believe that will happen would advise you (a UK resident) to sit tight and do nothing.

 

Oth the other hand, there are many who see the US economy running parallel to the UK economy who say that the $1.89 rate is artificially high (or that the $0.53 rate is artificially low).

 

A suggestion about improving your exchange rate.

 

Don't buy or sell currencies through banks or "Cambios" because the commissions far outweigh any exchange rate benefits. Rather, use your ATM card whenever you visit another country. The ATM fees are normally very low and you will get the best rate with no commissions at all.

 

Last item. If you are convinced that the current rate is better for you than the rate when you travel, try to prepay all arrangements. We booked a Hertz car for a week in France in February last year for travel in June. Hertz was willing to accept a partially refundable prepay at the current exchange rate, or would let us book without prepay and settle in Euros when we returned the car.

 

We took the prepay option and would up winning (by a few dollars).

[pcur]

A few additonal comments:

 

Using ATMs is what we always do to obtain Euros or local currency, BUT check your bank and see what partnerships they have with foreign banks. Then, you avoid the exchange rate PLUS a ding for using another bank's ATM. If you bank with Barclays in the UK, they partner with BofA in the US, and a few others in Europe. Check your bank's web site for info on this. That's how I found the BofA info.

 

The problem is buying ahead you will always get hit with some kind of extra fee in addition to the exchange rate. So, the choice is pay a few now and get the 1.89 exchange rate, or wait and use an ATM that dispenses US currency and go with the exchange rate at the time, but avoid the extra fee if you use a partnering bank with yours.

[Jarronwood]

Thanks guys

 

I know that the Nationwide card does not charge any commission. We opened an account with them earlier this year (we have bought an apartment in Bulgaria, hence the Levs) and I know from experience that we can draw out our money in Bulgaria with no commission being charged and at the current exchange rate.

 

I did not know whether there wuold be ATMs on our cruise but if most ports take this card then we are sorted.

 

I still want to take a load of dollars with me anyway but was trying to guess the best time to buy them and whether to buy them here or in the USA (Miami).

 

Whilst in Sainsbury today I picked up a leaflet about travel currency and I can buy my dollars in the form of traveller cheques but that you get a specially designated card which enables you to withdraw from ATMs.

 

Can I ask you experienced cruisers then whether most ports on the Panama Canal cruise has ATMs where you can withdraw your cash.

[Host Walt]

Thanks guys

 

I know that the Nationwide card does not charge any commission. We opened an account with them earlier this year (we have bought an apartment in Bulgaria, hence the Levs) and I know from experience that we can draw out our money in Bulgaria with no commission being charged and at the current exchange rate.

 

I did not know whether there wuold be ATMs on our cruise but if most ports take this card then we are sorted.

 

I still want to take a load of dollars with me anyway but was trying to guess the best time to buy them and whether to buy them here or in the USA (Miami).

 

Whilst in Sainsbury today I picked up a leaflet about travel currency and I can buy my dollars in the form of traveller cheques but that you get a specially designated card which enables you to withdraw from ATMs.

 

Can I ask you experienced cruisers then whether most ports on the Panama Canal cruise has ATMs where you can withdraw your cash.

So long as your ATM card is good at the major networks (your bank can tell you) you will find ATM's at almost any port these days. (I say "almost" just because there may be a small remote location that has no ATM somewhere that I have not heard about.)

 

Banks in the UK are far more likely to sell you dollars for sterling at a reasonable commission rate compared with banks in the USA.

[Cruise Junky]

Just really check your Bank's rates before using your ATM card everywhere. My Bank charges $5 transaction fee + 3% exchange rate. That adds up. I have a very large currency exchange place across the street from me at work, no fee and the exchange rate is maybe a difference of 1% if that. We always get it before we go and then use ATMs only if necessary. I've also been in a position where my card didn't work in London. Make sure you cover yourself.

[JORAY]

In Europe make sure your pin number is 4 numbers for your ATM card or it will not work.

 

My bank is Bank of America, I checked on buying Euros and find on their web they want 5% plus a delivery charge or pick up at a branch n/c.

[idssms]

When you have independent tours in foreign countries as I will be taking in Italy, the Tour Companies want the payments in Euros and credit cards cannot be used.

 

They take the CC for a downpayment/guaranty but not for the actual tour.

 

I have been vetting the exchange options out for months now and it looks like I am stuck with close to a $1.38 to $1.41 per Euro.

 

And to add insult, if we buy too many and want to exchange them the other way, the same commissions apply.

 

I did notice both of my credit card companys have a surcharge when buying in a foreign company. In 2003 when we charged in Europe there were no extra charges. About a year ago we were notified in a letter of this change. I think the surcharge is 3% of the total purchase.

 

Kind of a bummer to me that the consumer gets hit so hard.

 

 

Don

[Cruise Junky]

I have been vetting the exchange options out for months now and it looks like I am stuck with close to a $1.38 to $1.41 per Euro.

 

 

Don

 

Holy crap. I paid 1.42 last week and I'm Canadian!! That's criminal

[pcur]

In Europe make sure your pin number is 4 numbers for your ATM card or it will not work.

 

My bank is Bank of America, I checked on buying Euros and find on their web they want 5% plus a delivery charge or pick up at a branch n/c.

 

Actually, it was the Bank of America Customer Service Rep on the phone that told me to use ATMs for my Euros. She said to look up the countries and locations of partner ATM's in the cities we would be visiting. No extra fees other than the exchange rate.

[Cruise Junky]

Actually, it was the Bank of America Customer Service Rep on the phone that told me to use ATMs for my Euros. She said to look up the countries and locations of partner ATM's in the cities we would be visiting. No extra fees other than the exchange rate.

 

I use bank of nova scotia which is also partnered with BOA, when we checked their partners in Europe, there are some in some of the countries that we visited, but were not prepared to waste time trying to find that particular ATM machine. The locations were not plentyful.

[idssms]

Holy crap. I paid 1.42 last week and I'm Canadian!! That's criminal

 

 

That with American Automobile Assoc. Its easy and convenient to use AAA but their rates may be higher due to that fact.

 

The euro closed on Friday at 1.271901 US$.

 

Its hard to believe your Can $ ($1.42) bought a euro, great deal. The US Dollar is losing ground everywhere.

 

 

Don

[pcur]

I use bank of nova scotia which is also partnered with BOA, when we checked their partners in Europe, there are some in some of the countries that we visited, but were not prepared to waste time trying to find that particular ATM machine. The locations were not plentyful.

 

Yes, it's a hassle to find them, but we were in London and wanted to cut our costs, if possible. So, I went out to Barclay and the other partner banks' web sites before we left, got addresses for ATM's in the ports, and plugged them into multi-map. Found a Barclay's ATM about a block from our hotel.

 

I took the directions, etc. with me on our trip. If there wasn't any nearby in port, I just used the exchange desk on board the ship. But, both trips to the Med we took the maximum at the first ATM we used, and that was 400 Euros.

 

BofA, by the way, just lost a federal lawsuit about it's credit card charges and exchange fees for non-U.S purchases. It was a class action suit. So, there might be a little $$ coming back.

[cechase]

Last October we took a cruise on Galaxy out of Rome, Italy. In order to have some euros to pay our transfer at the airport, we went to our bank, Wells Fargo and each purchased 100 euros. Not only did we get an awful rate, but they also charged us a transfer fee for bringing the euros to our branch. UGGGH!

 

In Europe, we only used ATMs and/or our Visa card and got the best rates of the trip. We also learned our lesson when we bought some euros from the purser on Galaxy - a very poor exchange rate.

 

The crowning blow came when we went to our Wells Fargo branch on our return to exchange our remaining euros for US$, and the rate we were paid was 12 cents per Euro less than they charged us when we purchased them. And the Euro was actually falling against the US$ during our trip!

 

Next month we fly to Vancouver - guess that I will just use an ATM to pay the cab driver.

[pcur]

Last October we took a cruise on Galaxy out of Rome, Italy. In order to have some euros to pay our transfer at the airport, we went to our bank, Wells Fargo and each purchased 100 euros. Not only did we get an awful rate, but they also charged us a transfer fee for bringing the euros to our branch. UGGGH!

 

In Europe, we only used ATMs and/or our Visa card and got the best rates of the trip. We also learned our lesson when we bought some euros from the purser on Galaxy - a very poor exchange rate.

 

The crowning blow came when we went to our Wells Fargo branch on our return to exchange our remaining euros for US$, and the rate we were paid was 12 cents per Euro less than they charged us when we purchased them. And the Euro was actually falling against the US$ during our trip!

 

Next month we fly to Vancouver - guess that I will just use an ATM to pay the cab driver.

 

All of what you've described above it the reason the CSR on the phone from BofA told me to use ATMs. I'd pay the ATM fee and get your first Euros at the airport next time. Maybe you'll be lucky and there will be a partner bank ATM there!

[Host Walt]

Not so fast, folks. Breaking News

 

Today's LA Times has an article on how debit card fraud has suddenly changed this strategy. For example, Wells Fargo just shut down British bank access.

 

The ATM won't give me any cash. Help!

 

{from the article}...Referring to Conlon's situation, Lisa Westermann, assistant vice president of public relations for Wells Fargo Card Services, said, "We knew the risk for fraudulent activity was very high, so we needed to take immediate measures to protect our customers."

 

The blocks — their duration and the countries they affect — change frequently. Besides Britain, Wells Fargo has blocked transactions in Thailand and the Philippines...

 

The article suggests traveler's cheques. I disagree.

 

My suggestion is to:

 

1. Check with your bank right before you leave to see what blocks are on and what your alternatives are if a block is imposed after you leave.

2. Be sure to have at least two credit cards that can give cash advances in foreign countries (Amex and a Visa or M/C). Make sure you have your PIN number (required for credit card cash advances).

3. If you must buy travelers cheques, buy them in your home currency so if you don't need to cash them, they can be exchanged for cash or deposited into your bank account when you return home. Yes, you'll be whacked for commission and exchange premiums, but the whack is not as bad as the whack you'll get up front if you buy foreign currency travelers cheques in the USA.

[adegner]

Has anyone had any recent experience with buying EUROs at your local AAA office? Is it still possible and what kind of rate do they charge?