When is it better to change a currency

Changing currencies is a type of financial operation that is carried out constantly, both among the banks of the countries to have a currency available, as we do when we travel to another country and we need to pay in their local currency. Although it is a very simple transaction, it is advisable to take into account a series of guidelines and advice when carrying it out, to minimize the cost. In .com we give you some tips to know when it is better to change a currency.

Steps to follow:

one

The first thing we must be clear is that the currencies are not changed as such, but bought and sold. That is, when you have euros and go to a bank to ask for pounds, you are actually buying pounds. Since you are buying, do not apply the official exchange rate that exists, but that exchange rate with a commission.

For example, if the official exchange rate is: € 1 = $ 1.35, it could be that the bank gave you $ 1.30 for each euro. Those five cents for each euro is the commission that is carried by the entity that makes the exchange. The same happens, but on the contrary, when we sell a currency.

two

We must search and compare between the different banks or entities in which we can carry out the exchange, in such a way that we do it in the one that we charge a lower commission.

3

The exchange rate between currencies varies constantly, so we can not predict what it will be like tomorrow. If we have some basic financial knowledge, we can get an idea if we investigate what has been its evolution in recent months. Likewise, unexpected events can cause the change to vary greatly from one day to the next.

4

We must avoid changing currencies in airports or tourist sites, since they are usually the places where they charge higher commissions. We must try, if we travel abroad, try to carry all the cash we want already in the currency of the country of destination.

5

Be careful also with the commissions that they charge, not on the exchange rate, but for the simple fact of buying foreign currency. That is, depending on how much you change, you will be charged a greater or lesser amount in installments, apart from what is already applied to you in the exchange rate. Some entities do not charge this commission, compare!

6

Find out about the commission you may be charged for using your debit and credit card abroad, since you may want to use part of the money from these cards, and change part of the money in cash. In this way, in the event that you lose a suitcase or wallet, you will always have another way of not running out of money.

7

In short, it is impossible to know for sure, even for economists, when it is best to exchange one currency for another, since the amount varies continuously. But applying the above advice, we will spend as little as possible on the commissions that contain these procedures.