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Post by naldridge on Apr 19, 2010 15:46:40 GMT -5
Although it's impossible to tell what will happen with the Euro and Dollar, most of what I've read predicts that the Dollar will continue to decline compared to the Euro.
That said, would it be smart to go ahead and convert some of our $$ to Euros now (our trip is in Sept./Oct.)? If so, would I have the best conversion rate at a bank? Somewhere else?
Thanks!
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Post by WillTravel on Apr 19, 2010 23:53:31 GMT -5
I think if you want to do currency speculation (or be a currency trader), buying Euros now is probably not the best way to do it. It`s true you could come out ahead, but if it were really certain that the dollar is going to decline X% in Y months, then everyone would do it, and you could just as easily come out a loser. If you just buy Euros, they also won`t be earning interest in the interim period.
Banks rarely provide a good conversion rate -- in fact, it`s usually quite terrible. Some places look like they have a good rate, but in fact they charge a flat fee on top that kills it. There may be some good currency exchange places in your city, if you look around and compare. In Vancouver, I have found one that charges 2% over the interbank rate, with no other fees, for major currencies, and this is a better deal than I get from an ATM in Europe, so I usually get some currency just before a trip.
My recommendation -- figure out the best bankcard and bank account such that you can get low-cost withdrawals with a good exchange rate from ATMs in Europe. In the meantime, make sure your dollars are earning some interest, even if it`s slight.
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Post by naldridge on Apr 21, 2010 12:35:24 GMT -5
Good point about interest. Thanks!
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