# data[].attributes.body
On this website, the Canadian government gives us tips on how we should manage our funds when we travel. The website specifically mentions tips for using cash, cards, Traveler's cheques, Travelling with more than $10,000, and Taxes. Some tips the Government gave was to first of all ensure that the import or export of Canadian dollars was even allowed in your country of destination. They also advised to use of Credit cards over cash payment whenever possible, as Credit Cards tend to have more security and take accountability for their clients in the event your money is mishandled as compared to cash. One key thing to note though is credit card issuers may charge fees for using their cards internationally for transactions. The last thing I found surprising and did not know beforehand was informing the CRA in the event of a long trip outside of Canada to ensure that all tax laws were met.

I really like how clear and descriptive this source is about the positives and negatives of handling and exchanging currency in other countries. I also admire how this is a Canadian Government website, which means it is specifically catered towards Canadian citizens to offer the best possible tips to its own people regarding its own currency.

# data[].attributes.attachment_link.readable_text
Take steps that will help you avoid financial problems that may ruin your trip. Make sure you purchase travel insurance, and most importantly make sure you always carry a backup source of funds in case of emergency or an unexpected delay.

On this page

Cash

Check with the embassy or consulate in Canada of the country you are planning to visit to make sure you are allowed to import or export its currency. If you are permitted to import its currency, bring enough cash to get by for a couple of days and keep it in a money belt or in several different pockets in case your wallet is lost or stolen or your financial institution accidently freezes your cards. When you arrive at your destination, you can withdraw more cash from an ATM.

Exchanging your money

The currency exchange rate tells you how much your Canadian money is worth in the local currency. When you exchange your money, you are actually using it to buy or sell foreign currency at a specific price called the exchange rate. You can find the official exchange rate of the currency in the country you will be visiting by using the Bank of Canada's online currency converter.

It pays to know your options when dealing with foreign exchange rates. There are a number of ways to manage your finances when you are abroad that will save you a lot of money in exchange fees.

If you want cash on hand before you leave Canada, you can buy foreign currency from your financial institution over the phone or online. It can be delivered to your local branch for pick up. Exchange rates at banks are slightly better than elsewhere. You can also order currency before you leave on your trip from a number of websites that will ship it to your home within a couple of days.

Exchange desks

If you need cash in an emergency, there are foreign exchange desks at airports and hotels that will exchange Canadian money for the local currency. Fees tend to be very high. Even those advertising no commissions may have hidden fees, making these desks the most expensive places to change money.

Black market

The currency black market forms part of the underground economy in a number of countries. In a currency black market, transactions are almost always in cash, since its participants don't want to leave any evidence.

This illegal or parallel market in foreign exchange operates outside legal banking channels. If you are tempted to take advantage of the currency black market you should be aware that you will be breaking the country's laws and could be arrested and imprisoned. You are subject to the country's criminal justice system. Consular officials will not arrange your release from prison.

Be aware of anyone approaching you on the street offering to exchange your money for a much better rate than a bank. Typical money exchange scams include stealing your money in the process of counting and recounting a pile of bills or mixing your money with currency from another country with a much lower exchange rate. It is safer to go through an authorized agency or a bank.

Cards (Credit, debit and pre-paid)

Credit cards

Use a major international credit card for your big purchases, such as your airplane tickets, hotel bills and restaurant tabs. If you reserve your hotel and rental car on your credit card, the reservation should be guaranteed even if you arrive late.

Use the credit card instead of cash wherever possible. Credit card issuers typically charge fees for international transactions and you may get the best exchange rate and fees lower than those associated with exchanging cash. However, you should not use your credit card to withdraw money from an ATM, because the fees and interest charges are usually very high.
Before you leave:

Know the expiry dates, account balance and amount of credit available to you on all of your credit cards. Make sure you have enough money in your accounts to cover your trip expenses, plus extra in case of emergency.

Make sure your credit card company and financial institution have your up-to-date contact details, including a cellphone number, and information on where and when you will be travelling so that your account isn't flagged for unusual activity.

Check with your financial institution before you leave on your trip. Not all major credit cards are accepted everywhere. Merchants in some destinations prefer to be paid in cash because they must pay a fee to the credit card company. There may be a risk that your credit card will be cloned at some destinations, particularly in restaurants.

Debit cards

Always use bank-affiliated ATMs when you are outside Canada. Check if your financial institution has international branches or partners in your destination country where you can use your debit card fee-free. Using your debit card to withdraw money from ATMs will cost you extra in fees, but you can minimize them by withdrawing larger amounts less often.

You should carry some cash to cover daily expenses. Your debit card may not work in every ATM machine or be accepted at stores or restaurants in your destination country. If you are travelling to a rural area, you may not be able to find an ATM that is part of your financial institution's network, so withdraw enough cash to manage until you are back in a city.

Due to the potential for fraud and other criminal activity, you should use your credit cards and debit cards with caution. Use ATMs during business hours inside a bank, supermarket, or large commercial building.

Pre-paid cards

Some financial institutions offer pre-paid travel cards in foreign currencies. They may have higher fees than credit and debit cards, so check the terms and conditions and costs before you decide to travel with one. You can usually replace a pre-paid travel card as you would a lost or stolen travellers' cheque.

Be aware that pre-paid cards may not be accepted at some hotels and car rental companies, and may be difficult to use at the ATM machines of foreign banks.

Dynamic Currency Conversion

Some shops, restaurants and ATMs give the option of using the currency of the country you are in or having the transaction converted into Canadian currency. Always choose to be charged in the currency of the country you are in. You will pay high conversion rates and transaction fees if they convert to Canadian currency.

Save your receipts

As you travel, save all ATM and transaction receipts in an envelope. Bring them home in your carry-on bag. Save your airline boarding pass to prove your return date. If you need to dispute a transaction, sending a copy of your receipt will speed up the resolution process.

After you return home, carefully examine your credit and debit card statements and continue to do so for several months. Identity theft and credit card fraud are not confined to Canada. If you notice any unusual charges on your statement, inform your financial institution immediately and request a copy of the receipt.

Travellers' cheques

Canadian travellers' cheques are not widely accepted worldwide, but are an option if you don't want to use credit or debit cards or carry large amounts of cash.

When possible, order the cheques in the local currency and carry multiple cheques in small denominations. If you can't order cheques in the currency of your destination country, order them in U.S. funds, which are widely accepted. Sign them as soon as you get them and keep the receipt in a separate location. If they are stolen they can be replaced anywhere in the world, usually within 24 hours.

Keep a record of your travellers' cheque numbers, credit card account numbers and expiry dates and the telephone numbers for reporting lost or stolen cards in a safe place. If possible, leave a copy of the list with a family member or friend at home who can help you make telephone calls quickly if your cards are lost or stolen.

Travelling with $10,000 or more

Any time you enter or leave Canada, you must declare any money or monetary instruments, such as stocks, bond or cheques, you are carrying valued at $10,000 or more.
Travelling with $10,000 or more
Taxes

Canadians who live or work abroad or who travel a lot may still have to pay Canadian and provincial or territorial income taxes.

If you are planning to be outside Canada for an extended period of time, you should inform the Canada Revenue Agency (CRA) before you go to ask for a determination of your residency status. Your residency status depends on whether you are leaving Canada permanently or only temporarily and the residential ties you keep with Canada and establish in another country:
You are leaving Canada permanently You are leaving Canada temporarily
Visit International and non-resident taxes for information about income tax requirements that may affect you.

Departure tax

In some countries you must pay a departure tax or service fee at the airport or point of departure. Make sure you set aside enough money in local funds to pay it.

# data[].attributes.attachment_link.description
Government of Canada's official one-stop-shop for comprehensive international travel information.

# data[].attributes.body
Welcome to Wajih's Assignment 2 Padlet! In my padlet, I'll be discussing "Currency's: comparing currency from different countries. How do we handle/exchange currency's during traveling". I'll be taking a look at where our currency stands in comparison to other currencies from different countries. I'll also be looking at the most appropriate ways of handling and exchanging foreign currencies as well as our own abroad in different countries.

# data[].attributes.body
This image represents multiple currencies from all across the world. It is an example of how all the different currencies out there can be used across the world through the action of exchanging and handling. Even though they're all different, they have significant value in their own way.

# data[].attributes.body
On this website, they talk about how Currency rates are an unfair exchange for certain currencies. For instance, it specifically says how currency values fluctuate so much to the point it can effect individuals drastically. If a person was holding a specific currency and its value went up or down, there is nothing the individual can do to either gain/lose money as it is out of their control.

I really found everything in this website useful. One particular example it gave that really blew my mind was if 1 Euro was equivalent to $1.50 CAD and you were to make 150 000 CAD in France, if your currency even fell by 10 cents sooner or later, your $150 000 would be worth $140 000 now. This goes to show how sometimes this can definitely rule against you, which is why this website stresses exchange rates are not good. Overall there was a lot to learn from this source.

# data[].attributes.attachment_link.readable_text
Currency exchange is one of the biggest risks Canadian companies face when selling internationally, but ironically, it's a risk many businesses ignore.

This head-in-the-sand practice baffled me for a bit, but as I talked to more and more exporters, I understood it was simply a matter of hopeful human nature. They knew a fluctuation in the exchange rate could cost them, but they secretly hoped any fluctuation would be in their favour - and they'd hate to lose that extra money by locking themselves into an exchange rate at the time of the sale.

The problem, as I explain below, is that there's a hidden cost to your business when you don't manage your currency exchange risk - even when the gamble pays off and your business comes out ahead financially.

Why are exchange rates so important to companies that sell internationally?

An exchange rate is the value of one country's currency in relation to another's. For example, at the time of writing this blog, it cost $1.30 in Canadian funds to buy one U.S. dollar, or $1.50 to buy one Euro. The challenge for those who sell internationally is that currency values between countries are in a constant state of flux.

Say you sell some equipment for 100,000€ to your customer in France, and give them 90-day terms. Your expectation is that at the current exchange rate ($1.50 Canadian for one Euro), you'll receive the equivalent of $150,000 in Canadian funds when the bill is paid.

But what if the value of the Euro drops during that time from $1.50 to $1.40 Canadian? Now you'll only receive $140,000. It's easy to see how the risk of fluctuating currency exchange rates can diminish or even decimate your profits on a sale.

But wait a minute, you may be thinking, what if the Euro's value goes up to $1.60? Then you'll gain an extra $10,000! That makes it tempting to do nothing about the risk, or assume that sometimes you'll win, sometimes you'll lose, and it will all even out in the wash.

The hidden cost of ignoring currency exchange risk

There are many things that can influence the value of a nation's currency, including inflation, interest rates, its economy, the balance of trade between countries, and political instability, to name a few. But the reality is that you have no control over any of these things - an exchange rate can fluctuate at any time, sometimes drastically so.

Failing to manage that risk can hurt your business, even if you sometimes come out the winner in the exchange-rate gamble. Never knowing what loss or gain you'll take from fluctuating exchange rates means your company is constantly operating in a sea of uncertainty. For smaller companies, especially, you can't be sure what your profit will be for each transaction or how much cash flow you'll have to fulfill the next contract. The cost of that uncertainty is huge. It means your company will be less competitive and may grow at a slower pace due to inadequate cash flow to fulfill contracts and pursue new opportunities - not to mention the personal stress that taking such a risk can bring.

How to manage currency exchange risk foreign exchange guarantees

Foreign exchange guarantees (FXGs) are the simplest and most cost-effective way to manage your currency exchange risk. There are three main types that Canadian banks offer. Options, or derivatives, is a more complex method not typically used by small to medium-sized businesses, so I'll focus on spot rates and forward contracts.

Spot rate: The spot rate locks in the value of a currency "at this moment in time." Therefore, whether the exchange rate fluctuates up or down during the period of time before you get paid, you'll know exactly how much money you'll be getting from a sale, and can better plan accordingly. Don't be afraid to negotiate the posted rate your bank charges, as rates are currently coming down for this service.

Forward contract: A forward contract locks in an agreed-upon exchange rate for a transaction on a specific date in the future, which is not necessarily what the exchange rate is right now. This can be a good plan if a currency's value is expected to fluctuate considerably. However, it's important to note that upon the agreed date, the bank is obligated to purchase the foreign currency from you, and you are obligated to provide it. The added risk here is that if your customer is late with your payment (or doesn't pay), you're still obligated to the bank and will typically have to pay a penalty if you can't provide the currency on time.

Call EDC to get around the requirement for collateral

To provide exchange rate guarantees, banks also require collateral. For the world's major currencies, the rule of thumb is 10 percent of the volume of your contracts. So if you have $50 million in forward contracts, you'll typically be required to put $5 million in an account with your bank as collateral. That means the money will be tied up when you could be using it to complete contracts or grow your business.

To get around this, call Export Development Canada first. We'll explain how EDC can provide a Foreign Exchange Facility Guarantee to your bank that replaces their need for collateral, so you have currency rate protection you need without tying up your cash.

Building a foreign exchange policy

Understanding FXGs is a great first step to managing your currency exchange risk, and developing a foreign exchange policy will benefit your company even more. To get started, download Building a Foreign Exchange Policy to create a program tailored to your company's needs.

# data[].attributes.attachment_link.title
Currency exchange risk: how to handle the ups and downs

# data[].attributes.attachment_link.description
Think there's nothing you can do about currency exchange risk? Discover why ignoring it can carry a hidden cost for your company - and how you can manage the risk.

# data[].attributes.body
This is a board in another country that represents a currency exchange center. The numbers beside each currency represent the value of other currencies in the specific country. It shows out of all that the GBP is the most valuable currency in that country.

# data[].attributes.body
This video explains how Tourists in the U.S. are finding trouble with affordability in New York City as their home currency does not hold much value when converted and spent in New York. It shows the clear issue of currency values in other countries and definitely reduces the accessibility of goods and services for individuals who exchange their not-so-strong currency as compared to the American Dollar. With that being said though, I believe tourists should account for all this beforehand especially when visiting a very expensive city as New York City knowing how much value their home currency holds. All the information is available to the public.

# data[].attributes.attachment_link.title
Tourists in the U.S. cutting back on spending

# data[].attributes.attachment_link.description
In New York City, some tourists are feeling the sting of a surging U.S. dollar as things become more expensive than when their own national currencies held more value against the greenback.

# data[].attributes.body
This video explains how the Bank of Canada rising interest rates is devaluing the Canadian Dollar drastically when compared to other countries. This is very bad for Canadians who travel abroad as day by day their home currency is lowering in value which will inevitably lead to higher costs for goods and services abroad. While the CAD does struggle, the video also shows other countries who are suffering from inflation even more than Canada is, so all in all multiple currencies are beginning to lose value as of recent.

# data[].attributes.attachment_link.title
FX Insights: Canadian Dollar Struggles Against Other Currencies

# data[].attributes.body
1. What surprised me most was where our currency ranked in terms of value. I was really surprised to see how devalued our currency has gotten over the years especially when compared to similar countries like the United States and the UK. Knowing we have such a large country full of amazing people and resources, it was shocking to see how much damage our currency took on a global scale.

2. This topic is extremely relevant to my life as I myself adore travelling to Dubai every year and understand the significance of currency value/exchange/handling. For me it is very important our currency stays strong against the UAE dirham so when I do convert my currency to the dirhams I get the most value possible to enjoy my trip.

3. The most important information I can pass on to my family would be the source provided by the Canadian government explaining tips on spending, exchanging and handling money abroad. It is perfect for my family because we are Canadian and it impacts us directly.

# data[].attributes.body
This website explains how to exchange your home currency the most efficient ways so that you get the best bang-for-buck with the least possible amount of deductions. This is very fundamental to a traveler as they want to get as much possible value as they can to ensure they have the best trip they have worked hard for.

I really found tip 1 to be extremely helpful and true based on my own experiences. It says that it is best to withdraw cash at your local bank before you head to your destination. Bear in mind this is only if you do not need more than 10,000$ to declare. I learned the reason it is good to withdraw cash beforehand is if you do it at your destination's ATMs, you can be hit with a huge service/exchange fee from your home bank which can be much more than the exchange fee at a currency exchange booth. This reminds me of when I paid 40$ everytime I withdrew 500$ or more at Dubai Mall ATMs which was extremely high.

# data[].attributes.attachment_link.readable_text
If you're ready to hit the road after being grounded for more than two years, you definitely want to get the most bang for your travel buck. A smart way to save while traveling internationally is to understand how currency exchange works so you can exchange currency without paying more fees than necessary.

It all comes down to a little "know before you go." The tips below will help you get the gist of currency exchange, so you can score the best rates when your travels take you abroad.

How Does Currency Exchange Work?

Think about the currency exchange rate the same way you think about buying produce at the grocery store. For instance, you might get three pounds of oranges for $4.00 one day, but a week later, you can get those same three pounds for $2.79. The value of your dollar is stronger (gets you more) when the oranges are $2.79 and weaker when you have to pay $4.00.

A currency exchange rate is simply the value of one country's currency against another country's currency. Like produce prices, the U.S. dollar's value against the currencies of foreign countries like France, Canada and Mexico tends to fluctuate. Currency exchange rates can change minute to minute, though most banks only update their rates once each business day.

Since exchange rates fluctuate, you'll want to make sure you get the most foreign currency for your U.S. dollar, which means getting the best possible exchange rates and limiting the fees you have to pay.

Where to Exchange Currency

To help you save the most on currency exchange rates and avoid potential fees for international transactions, use the tips below to plan for your next trip abroad. More money in your pocket and less spent on unnecessary fees means more to spend on your globetrotting adventures.

1. Get Cash at Your Bank Before Leaving the US

One of the best ways to minimize currency exchange fees is to visit your bank or credit union before you leave the U.S. to exchange dollars for the currency of your destination. Depending on which country (or countries) you plan on visiting, most major U.S. banks will have foreign currency available to sell to you without charging an additional fee beyond the exchange rate. For example, Wells Fargo offers 70 currencies for use in more than 100 countries, and Bank of America exchanges currencies for more than 100 countries.

You may be able to get foreign currency in cash at your local bank branch, or you can order currency online or by phone to be delivered to your home. Depending on your bank, where you live and which country's currency you need, some currencies may be available for same-day exchange. Other, less frequently requested currencies could require a few days-or more-of advance notice.

"Customers who order currency through their own bank can ensure the money they receive is authentic and that they have received the best, legal rate," says John Sellers, rewards executive at Bank of America. "As these rates are constantly changing, Bank of America uses a variety of factors to determine its exchange rate-including market conditions and rates charged by other financial institutions," he says.

2. Avoid Currency Exchange Kiosks at Airports

If you don't have time to get cash at the bank before your trip, it can be tempting to get foreign currency at an airport kiosk or currency exchange counter. These merchants offer convenience, but their exchange rates are typically much less favorable than your bank at home.

For example, if you're traveling to the United Kingdom and your bank offered you an exchange rate of £72 per $100, the airport kiosk may give you only £67 per $100, costing you extra money in the form of fewer pounds for your dollars. If you had made that exchange at your home bank, you'd have an additional £5 in your pocket.

A good currency conversion calculator will help you do the math and make the comparisons.

Featured Money Transfer Partners

Airport kiosks may also charge higher fees, which are sometimes hidden within the poorer exchange rates they offer for converting your dollars to another currency. If you're traveling on short notice and need foreign currency in cash at the airport, it could be worth paying the extra cost for the sake of convenience. If you can plan ahead, however, try to avoid airport kiosks and other exchange counters.

3. Pay by Card, but Watch Out for Foreign Transaction Fees

Once you arrive at your destination, you may choose to conserve your foreign cash and pay with your credit or debit card as much as possible. But this can pose another problem: foreign transaction fees.

Depending on your bank and what card you have in your wallet, your credit card or debit card might carry a foreign transaction fee of up to 3% on every purchase in other countries. For example, if you spend a total of $5,000 on a trip using your debit or credit card and get charged a foreign transaction fee of 3% on every purchase, you'd rack up $150 in extra charges. Probably not what you wanted to spend your money on, right?

To avoid these sneaky foreign transaction fees, read the fine print on your bank's or credit card's website before you travel. You can also call your bank and ask if it charges foreign transaction fees with the type of card or account you have.

If you have time before your trip, you may want to apply for a credit card that doesn't charge foreign transaction fees, especially if it's a good travel rewards credit card.

4. Pay in the Local Currency to Avoid Currency Conversion Fees

Some international merchants let you choose whether you want to pay for your purchase in the local currency or U.S. dollars. While it may not happen with every purchase, be on the lookout because it's a place to save on fees.

If you ever find yourself in this situation, you should choose to pay in local currency. If you choose to pay in dollars, you'll be charged an extra currency conversion fee and likely get a poor exchange rate. The merchant's point of sale system may make it seem like it's a convenient choice to pay in dollars instead of the local currency, but it will ultimately cost you more.

5. Know Your ATM Fees and Limits

Even if you can get a favorable exchange rate using a foreign ATM, you may want to hold off on using the machine until you know what kind of fees your bank charges and what limits it imposes on daily withdrawals. Contact your bank to ask about the daily ATM withdrawal limits on your account. If your daily withdrawal limit is low, consider asking your bank to raise that limit so you can withdraw what you need while traveling. You'll also want to know about any fees your bank might charge if you use an out-of-network ATM abroad.

Keep in mind that some international ATMs limit you to a lower amount of cash withdrawals than your bank allows. Even if your bank's daily withdrawal limit is $500, the foreign ATM network or bank may only let you withdraw $300. Plan ahead to make sure you have enough cash during your trip.

6. Use International Banking Apps

If you're a frequent international traveler, consider using an international banking app -such as Wise (formerly TransferWise), Revolut or others-to manage your money. These apps make it easier to hold multiple currencies and transfer money to accounts in different countries.

With a multiple currency account, you can keep some money in various currencies. It's helpful if, for instance, you frequently travel to Canada or Mexico, or if you love to go on vacation in Spain every summer. This helps you avoid the volatility of currency exchange rates since you'll always have some money ready for your next trip.

Banks That Exchange Foreign Currency for Free

Many U.S. banks will exchange USD for foreign currencies without charging a fee, but there are often stipulations. For instance, Bank of America customers can exchange foreign currencies for free, but only on orders of $1,000 or more. Otherwise, the bank charges a $7.50 delivery fee for foreign currency orders.

Likewise, customers of TD Bank can exchange U.S. dollars for foreign currencies without paying a fee, but only if they have a qualifying type of account. TD Premier Checking customers won't pay foreign exchange fees, but TD Convenience Checking customers will. Check with your bank to find out if it exchanges foreign currency for free and if there are any conditions you must meet to avoid fees.

Where to Get Foreign Currency Internationally

If you need foreign currency while traveling outside of the U.S., ATMs are your best bet for bills you can spend locally. ATMs tend to offer competitive exchange rates, and you can save on ATM fees by withdrawing more cash than you need instead of withdrawing smaller sums several times during your trip. And if you're outside of the U.S. and need currency to spend in a different country than the one you're in, try visiting the biggest bank you can find to exchange your cash.

Featured Money Transfer Partners

Bottom Line

Before you plan your next international trip, give some thought to how you want to pay for everyday purchases. Understanding currency exchange fees, foreign transaction fees, ATM withdrawal limits and other aspects of paying in foreign currencies can help you save money and time and enjoy your travels to the fullest.

Frequently Asked Questions (FAQs)

# data[].attributes.attachment_link.title
Where To Exchange Currency Without Paying Huge Fees

# data[].attributes.attachment_link.description
If you're ready to hit the road after being grounded for more than two years, you definitely want to get the most bang for your travel buck.