If you are planning a trip abroad and need to change money into another currency, then it is advisable to have an idea of how much money you will have after the change. Furthermore, knowing exactly the value of the coin allows you not to pay unreasonable commissions, since you will be able to calculate how much you will lose in the transaction and therefore you will be able to choose in an informed way, and in advance, which payment method to use. Being informed about the value of the foreign currency is a smart move when traveling, and can potentially save you some trouble.
Steps
Part 1 of 3: Performing the Calculations
Step 1. Determine how much money you want to change
Think about how much you plan to spend on the trip. Alternatively, if you know how much money you will need abroad, proceed backwards from the expected expenses in foreign currency.
Step 2. Look for the currency exchange rate of the state you will be traveling to
You can find it easily with a Google search or on various finance sites.
Remember that you have to set the amount of money in your currency equal to 1 and you will get the corresponding value in local currency. This is the exchange rate
Step 3. Calculate how much money you will have after the change
Multiply the money you plan to spend by the exchange rate. The result will tell you how much money you will have in local currency. If "a" is the money you have in your currency and "b" is the exchange rate, then "c" is the amount of money you will have. Therefore: a * b = c And a = c / b.
- Let's say you want to exchange euros for dollars. You can find from various sources of information that, for example, today 1 euro is equivalent to 1, 3127 dollars. So the exchange rate is 1.3127. If you are planning to take 1500 euros with you, then you have to multiply 1500 x 1.3127. The result, 1969, is the amount of dollars you will receive after the change.
- Here is an example for the "backward calculation". Let's say you need 20,000 Hungarian forints for your trip. You have verified that 1 euro corresponds to 297.23 forints. To find out how many euros you will need, divide 20,000 by 297, 23, that is 67, 28 euros.
Part 2 of 3: Using other Conversion Tools
Step 1. Find an updated online converter
There are many websites that allow you to convert almost any world currency. They also provide you with the updated exchange rate, which you can use to apply the equation from step 3 of the previous section.
Step 2. Read a finance newspaper
You can buy any newspaper - preferably one specialized in economic matters - to find out the exchange rate of the currency of your interest.
Step 3. Do a Google search
Simply type in the name of the coin whose value you want to know in your currency and Google will give you the answer.
- For example, if you want to know what 1000 US dollars is in euros, simply type the phrase 1000 dollars in euros in the Google search bar and you will have the answer you are looking for.
- However, as the Google converter is not always up to date with the latest monetary fluctuations, this information must be considered one esteem and not an accurate figure.
Part 3 of 3: Changing the Currency
Step 1. Go to the bank
All banking institutions carry out the currency exchange service. Go to the counter of your bank and arrange for the exchange or, in the case of large quantities or uncommon currency, proceed with the order. Normally, the bank charges a fee, which can be quite high, if you are not a current account holder.
- If there is no immediate availability of the currency you want, the bank branch will order it for you. It will take 2-5 business days to wait.
- Remember that small branches have less foreign currency available.
Step 2. Contact an exchange agency
A currency exchange office is available at all international airports which allows foreigners to obtain local currency once they arrive at their destination.
It may happen that these offices require higher fees than banks, because they are located in strategic places (such as airports) and offer a quick service
Step 3. Use an ATM in the foreign country
Sometimes, the easiest way to change money is to use an ATM or credit card at an ATM. Your bank will probably apply commissions on the withdrawal operation abroad which may also be a percentage (usually 1-3% of the amount), in addition to any expenses required by the bank "owner" of the branch.
