If you are planning to travel abroad, you have probably come across the term “foreign currency conversion.” Foreign currency conversion is the process of converting your home currency to the currency of the country you are travelling to. Here are 3 things to know about currency conversion before you travel.
3 Tips on Currency Conversion for International Travel
Understand what the exchange rate is
The exchange rate is the ratio between currencies from two different countries — for example, your home currency and the local currency of the place you are travelling to. If you are travelling from the UK to India, the exchange rate may be expressed as follows:
GBP 1: INR 116.26 (The exact rate changes constantly)
This means that for every Pound you exchange, you’d receive 116.26 Indian Rupees. It’s important to keep an eye on how the exchange rate moves so that you can exchange your money at the right time to get the best possible rate. Note that providers of currency exchange like Western Union usually add a margin to the exchange rate.
Factor in currency conversion fees
Whenever you exchange one currency for another, there is a cost involved. This is known as the currency conversion fee and can vary considerably from one foreign exchange specialist to another. Check how much the fee is before you exchange your currency because this can have a huge impact on the amount you receive.
Send money ahead to your destination
If you want to make currency conversion really easy, you can send money to a Western Union location that’s near where you will be staying. When you arrive, you can pick up the money in the local currency. You can use the online Western Union currency converter to get an estimate of how much you might receive factoring in the exchange rate and any other fees, and you can make the transfer right from your phone using the Western Union money transfer app.
