Budgeting is crucial for successful travel. Besides transportation, accommodation, and food, consider currency exchange in your budget.

When traveling internationally, remember that currency exchange rates fluctuate, which can affect your budget and expenses. You need to account for these variations to avoid overspending or falling short on funds.

By including currency conversions in your budgeting and using a currency converter in the UAE, you’ll get a better idea of how much you need to spend on your travel, allowing you to make smarter financial decisions. These strategies can help you prioritise experiences that matter and avoid unnecessary expenses.

A Guide to Exchanging Currency for International Travel

1. Familiarise yourself with currency exchange terms

Knowing these terms can help you understand the process and go through the different steps smoothly.

• Exchange rate

  Also called rate of exchange, this refers to the amount you get for exchanging your local currency for the one used in your destination. For instance, if you’re traveling from the UAE to India, you have to change your UAE dirhams to Indian rupees.

• Buy rate

  If you have leftover currency from your international travel, you can exchange it for local money once you’re back home. The buy rate pertains to the amount you get in your local currency after selling the foreign money.

• Bank rate

  Also known as bank-to-bank rate, the bank rate is the wholesale exchange rate 

2. Know the exchange rate.

Exchange rates fluctuate due to factors like inflation, interest rates, and supply and demand. Because of this, you should know the best time to buy foreign currency to get more from your money.

Use online or use an app to check the latest currency value regularly. These tools can help you learn how to calculate the exchange rate and exchange your money when the rate is favorable. This can save you money, especially if you track the rates for a few weeks before your trip.

3. Secure foreign currency before traveling.

Having your pocket money before you travel can save you from a lot of hassles. If you choose to exchange currencies prior to your flight, you won’t need to spend time finding a trustworthy bank or foreign currency exchange vendor in your destination so you have money to spend.

Aside from buying foreign money beforehand and taking it with you during your travel, you can also send money ahead to your destination. For instance, if you’re traveling to the Philippines, speak with your remittance service provider about how to send money online from the UAE and collect it from an accredited local agent or bank.

Ask about partner remittance centers near your stay. This can help you avoid carrying a large sum of money and ease fears of losing it in transit.

4. Factor in additional costs.

Currency exchanges often come with fees and service charges. While checking the exchange rates, check the providers’ fees and compare them to get the best deal.

Do the same when you choose to send money for you to claim at your destination since money transfer fees also come with different charges.

By knowing about these additional charges, you can include them in your budget and avoid miscalculations.

5. Consider exchanging to local currency.

While there are major currencies widely used globally, such as the US dollar, euro, or British pound, consider exchanging your money to the local currency of your destination. 

Although with these major currencies for your expenses during your travel might seem like a good way to track your expenses, you’re likely to incur additional charges (called conversion or dynamic currency exchange fees) when you do. 

With a well-thought-out budget and the right strategies for exchanging currency, you can have a less stressful, more enjoyable, and rewarding journey overseas, whether you’re traveling for business or pleasure.

Contact us to learn more about our foreign exchange services and the latest Al Ansari Exchange promos.