It doesn’t matter if you need a hundred Thai Baht for a holiday or one hundred thousand US dollars for a shipment from China, read our article to help you avoid the worst mistakes you can make when buying or selling currency.
This is, by far, the most common mistake every person will make at least once. If you do make this mistake, hopefully it doesn’t cost you too much. Exchange rates are so volatile and unpredictable and yet, for some reason, there is a little voice inside that says: “I think the Aussie dollar will go up because…”.
Another mistake is to pin all your hopes on a forecast from an economist, financial commentator or journalist. No one – absolutely no one – can accurately predict the exchange rate on a consistent basis. Over of a period of 6-12 months, most don’t even come close.
Getting the amount wrong
One of the biggest money-wasters is left-over currency. If you are travelling overseas and have loaded up too much travel money on a card, chances are, you aren’t going to convert it back. Even if you have left over coins and notes, it’s a pain to convert it back into Australian dollars, so, unless you travel back to the same country, it’s money down the drain. You might justify it by calling it ‘souvenirs’ and giving it to your nieces and nephews but the reality is, it’s money – so why stick it in a scrapbook?
This mistake can be even more costly if you are sending money overseas. If you don’t send enough, you’ll have to make more payments and incur more transfer fees. If you end up buying more money then you need to send, there are usually cancellation or amendment fees – just to rub more salt into your wounds.
Not shopping around
This one’s such an easy mistake to make. More than half of Australians who travel simply accept the exchange rate they are given by their bank. They might grumble or check xe.com to see where the actual exchange rate is at – but they still put up with a lousy rate. The biggest issue, in most cases, is having the time to find a better exchange rate. Luckily, we’ve put together all the information you need in the one spot.