Dedrei Posted October 2, 2007 Report Share Posted October 2, 2007 Hi GuysJust wondering if some of the gurus can tell me which way is best to use foreign currency.We have a trip coming up and just wondering is it best to use my credit card, debit card or use traveller's cheques or even the Rennies Travel card thingy? Which option is the best rate?Coming to think of it, if you earn aussie dollars like us and you want rands. Won't it be best to get someone with the worst rate? Cause R6.20 to one dollar is better for me than R5.90 or something.I don't know, the floor is open for discussion.CheersDedrei Quote Link to comment Share on other sites More sharing options...
Springbok Posted October 3, 2007 Report Share Posted October 3, 2007 Coming to think of it, if you earn aussie dollars like us and you want rands. Won't it be best to get someone with the worst rate? Cause R6.20 to one dollar is better for me than R5.90 or something.Remember you will see two figures quoted for currency exchange:We Buy (e.g. 5.90, the rate at which the bank BUYS rands from you in exchange for A$)We Sell (e.g. 6.20, the rate at which the bank SELLS rands to you in exchange for A$)The spot rate is somewhere in the middle (e.g. 6.05) - that is the rate at which it trades in the currency markets and the banks or travel agents make their commission from what they call the buy/sell spread.If you want to exchange your Aussie dollars for rands, you will pay the higher rate of the two (e.g. 6.20). So you sell Aussie dollars to the bank and the bank sells rands to you. When you come back, you sell your rands back to (and buy Aussie dollars back from) the bank, which buys your rands from you, at the lower rate. Quote Link to comment Share on other sites More sharing options...
JJV Posted October 3, 2007 Report Share Posted October 3, 2007 Won't it be best to get someone with the worst rate? Cause R6.20 to one dollar is better for me than R5.90 or something.Hi DeidreYes, you'll look for the most ZAR for your AU$. Thus getting R6.20 (rather than R5.90) for your AU$ is obviously what you want.Remember to use the Bank's selling rate (as Springbok pointed out) for comparison.In general, credit cards are the most convenient for your purchases without any major downsides. Keep in mind the hassle factor to replace T/C's. Just bring an alternative credit card (and carry it separately) in case the first one gets stolen! Quote Link to comment Share on other sites More sharing options...
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