Best Ways to Exchange Currency: Whether you are a traveller exploring foreign lands or a student with global dreams, the process of exchanging currency is a critical aspect. Fluctuating exchange rates and varying fees charged by different platforms make it challenging to choose the best way to exchange currency. Understanding currency exchange rates and where to exchange currency is crucial. Continue reading to get a gist of currency exchange so that you can get the best rates for currency conversion.
Table of contents
What is Currency Exchange?
A currency exchange is a licenced business that allows you to exchange one currency for another. For example- exchanging Indian rupees for US Dollars, or Thai Baht for Dhiram.
Currency exchange of physical money- coins and notes is done over the counter at places like banks, credit unions, airports, hotels, and resorts. These platforms make money by charging fees to exchange currency.
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How Does a Currency Exchange Work?
Physical or online currency exchange businesses allow you to exchange the currency of one country for another. For example- if you want to exchange US Dollars for Indian currency, you would bring your INR to the currency exchange store/ platform, and buy US Dollars with them. The amount of Dollars you will be able to purchase depends on the exchange rates set by the central banks of different countries.
For instance- the exchange rate for exchanging 1000 INR into dollars is 12.6 for the day. This means that for every 1000 Indian rupees spent, you can buy 12.6 Dollars if traded at the exchange rate. However, the currency exchange platforms may modify this rate higher. In such a scenario, you will be able to get fewer dollars in exchange for 1000 INR spent.
Best Ways To Exchange Currency
To save money and manage your finances wisely, it is important to consider exchanging currency at Banks, through ATMs, or through money exchange centres approved by the RBI. Let’s check about the best ways to exchange currency-
Exchanging Currency at Indian Banks
To exchange currency at Indian Banks is a fair deal because you get the best exchange rates and great assistance from bank staff. Indian banks are not only trustworthy but also the safest place to exchange money.
Withdrawal through ATM
Getting currency exchanged through ATMs is one of the most convenient ways. You could utilize your ATM Debit Card from your country of residence. Banks may also impose service fees when you are using your ATM card abroad.
Through Money Exchange Agencies Approved by RBI
The best way to exchange currency is through money exchange agencies that are approved by the RBI. You don’t need to have an account with them to exchange currency. Multiple agencies all over India offer great exchange rates.
You can also purchase the cheapest Forex cards to help you send money internationally with low transfer fees.
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Key Pointers to Consider When Exchanging Currency
To get the best exchange rates possible, here are a few pointers you should keep in mind when you exchange currency –
- Keep an eye on currency exchange rates and compare them across different providers to get the best rate possible.
- Be aware of the fees or commissions charged for currency exchange, as it can impact the total amount received.
- Monitor market trends and fluctuations as exchange rates can vary daily. Consider exchanging your currency when the exchange rates are favourable.
- Explore ATMs, credit cards, forex cards, or traveller’s checks which might offer competitive rates.
- Do not exchange currency at airports as airport currency exchange rates are very high. They charge 10-15% of the transaction fee to cover their profits and operational costs.
Considering all these pointers can help you in getting the best exchange rates and the best ways to exchange currency.
FAQs
Although a small fee is charged whenever you exchange currency, your bank or credit unions are the cheapest ways to exchange currency.
The cheapest method to exchange currency in India is ATM withdrawals. One can use a debit card from their country of origin to withdraw money from ATMs in India.
Banks with AD-I licences from the RBI and money changers with both AD-II and FFMC licenses can exchange currencies in India.
You can always exchange currencies at the airport but it is not advisable to do so. Vendors at airports are well aware of the fact that the passengers have come in a hurry and need immediate local currency. They end up charging 10-15% extra to cover their profits and operating expenses.
Non-residents, tourists, and foreign nationals are permitted to take currency notes outside of India up to a maximum of Rs.25,000 per person.
This was all about foreign currency and how a currency exchange works. Avoiding currency exchanges at airports, hotels, resorts, and shopping malls is the ideal way to save your money. The best ways are exchanging currencies at banks, through ATMs, money exchange agencies approved by the RBI,
To know more about the currency exchange, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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