Travel Tip #8: Work that Currency!
The easiest way to win at currency trading is going to the country with the weak currency. You need to spend money to live, when your living expenses drop because your money is worth more, you win! In fact, you can not lose!
Whole countries take advantage of this. Take Ecuador for example and how they use the dollar. Ecuadorians who's currency is US dollars regularly cross into Colombia to go shopping. But it wasn't always this way.
Colombia lost about 1/3 of it's value against the dollar in 2015. The Ecuadorians were suddenly perceived as wealthier and there to spend money. Everyone especially the Colombians knew it. I recall comments in Spanish "Oh, you have dollars, surely Colombia is cheap for you".
The US dollar is strong right now. Many countries are on sale all over the world. The Thai Baht is about 10% cheaper than all of 2010-2015. Most of Central and South America are great deals too.
In India the dollar buys almost twice as many rupees as ten years ago. Greece, Portugal, and Spain have gotten cheap due to economic crisis combined with a Euro 10% cheaper than a decade ago. Eastern European countries offer incredible exchange rates too.
When traveling, yes it does make sense to go where your money goes the furthest. For long term budget travel this is just another strategy in the tool kit!
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With over 10 years of travel experience I answer travel and international lifestyle questions. Leave a question in the comments and I may make a video just for you!
Hebat bisa terpikir hal demikian
Don't know that language but thank you!
woww! great!
Thanks
And, you're bringing money into the economies that need it most.
Exactly! I've heard of people going to Venezual now, and they get a wad of cash so thick for like twenty dollars they fill an entire backpack with it. And they stay at like 5 star hotels for like 7 dollars a night. That's more than what my article is about. It's a full blown economic tragedy there and it's too dangerous to travel through in my opinion. But your comment is spot on.
My question is when to change money - before or after you enter the country?
I had a lot of Malaysian Ringit when I was done with my last trip and changed them in the KL airport. In Thailand they inspect the currency of the other country and reject it for exchange sometimes so I thought I was being smart - but was I?
I knew to get rid of my Lao Kip before I left since I heard it is not worth anything outside of the country. I find this issue very confusing.
Good Question. It depends of the currency. When you're dealing with major currencies like the US dollar, Euro, Pound.....Exchange it once you arrive to the destination. Generally not in the air port. Or just enough in the airport for you to function for a day or two. As airports always offer the "sucker" rate. The worst rate.
Once arriving in a more touristy place there will be plenty of competing exchange places. You can see who is offering the best rate and then change your money.
Like you mentioned if you are leaving a country like Laos or Malaysia or any number of smaller second/third world countries; get rid of the currency before you leave the country. Or you may not be able to at all once arriving in your new destination. Or you may only be able to exchange it at a 50% loss, or get lucky and find a fellow traveler heading to where you left that will take it off you at a fare rate.
So yes, you did the right thing leaving Malaysia.
Yay! Thank you. I was so tired! I thought I would just get it over with. I read somewhere that the KL Airport has good rates. I don't know if that is true.
I could live in that airport. Free computers everywhere with great wifi and everything else you ever needed for a life of luxury. I'm sure there is a great pool somewhere.