Buying Euros
Should I buy Euros in my country prior to my trip or wait until I arrive at my destination?
When you buy Euros at a local bank you are charged transaction fees and you don’t get a great exchange rate but chances are you will get a better rate than at your destination’s airport.
For a two week stay in Europe, you should plan to bring at least 200-300€ per person in cash for miscellaneous expenses and then use an ATM card or credit card for all other expenses such as lodging, restaurants and gas stations. This way you don’t have to carry to much cash and if the Euro exchange rate happens to drop during your trip, you may be able to benefit from the more favorable rate.
ATM machines are found in all the major cities and towns in Corsica and credit cards are accepted in most hotels and restaurants. (I don’t use Travelers checks). Many hotels in Corsica also offer currency exchange services to their guests, however, be sure to ask what their rate and commission fees are beforehand since this option will likely be more expensive.
When buying Euros, shop around for the best deal. Most banks will tell you over the phone what the going Euro exchange rate is. Also remember many banks charge a flat fee of $15 per transaction. So be sure to compare all costs.
Should I buy Euros now to protect myself from future increases?
Having experienced a great deal of anxiety in March, 2008 when the Euro hit 1.60 and then watching it drop steadily to a low of 1.25 in November, I was reminded of this often repeated quote: “Unless your name is George Soros, do not buy large amounts of foreign currency”.
It is true that the Euro has remained strong against many currencies for at least the past 5 years, however, there’s still a lot of instability and uncertainty in the financial markets, with several scenarios still waiting to unfold.
The following is just my personal view based on my knowledge and experience as a traveler and not as a financial advisor:
Buy only what you need for an upcoming trip and use ATM and credit cards for the remaining expenses. For instance, if you’re traveling from the U.S. or Canada, probably your two biggest expenses will be airfare and auto rental. It is usually best to pay for these items via credit card prior to departure. The remaining expenses such as lodging, meals and gas you may want to pay for with a credit or debit card. Use cash for all miscellaneous items (boat rides, snacks, train or bus rides, cyber cafes etc.)
The good news is that traveling to Europe has recently become a bit more affordable due to a decrease in fuel and airline ticket prices, at least for the time being.
Filed under: Practical Information
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