When traveling abroad, you inevitably will be required to get your hands on some local currency. Years ago, your options were trading dollars at banks, currency exchanges, traveler’s check offices (American Express, Thomas Cook, etc.), hotels and, in some economies, the black market.
Thanks to computers, you can now obtain money at many automated teller machines around the world, using your home ATM card or bank-issued credit cards.
Which gives you the best deal?
On a February trip to Zihuatanejo-Ixtapa, here’s how some of today’s options actually compared (rates expressed in pesos per dollar) (star):
Hotel cashier: 7.5 pesos
Restaurant (when paying in dollars): 7.5 pesos
Silver shop (when paying in dollars): 8 pesos
Credit card (MasterCard, for cash advance): 8.11 (star) (star)
Currency exchange (best rate found at any exchange): 8.12 pesos
Credit card (for purchase): 8.36 pesos
ATM (Cirrus): 8.39 pesos (star) (star) (star)
(star) Traveler’s checks not included. Companies typically charge 1 percent when you buy them (2 percent for dual-signature checks). There’s no additional fee when you exchange them at their foreign offices; otherwise, exchange rates are similar to cash.
(star) (star) Includes 2.5 percent fee plus estimated half-percent for interest charged over one month.
(star) (star) (star) Your actual return may be slightly lower, depending on your bank’s fee schedule for ATM use.
