Border Crossing on a Bicycle 2: Money Money Money
If youāre bicycle touring internationally, you may find yourself standing at the border between two countries with intent to cross from one to another. You may get lucky and your destination country uses the same money as your own. But in many cases you will need to change a little money. I've already written about how to arrange your travel documents to make border crossing go smoothly, but none of that does you any good if you're using the wrong kind of currency. This article is the second of a three part series about crossing international borders on a bicycle. Money and how to exchange it...
Image: Official Ecuadorian Currency
Cash Rules the World: Duh. Cash is likely the single most important material possession that you will carry with you on tour. If you need food you will use cash to buy it. If you need bike parts, a few bucks will buy that too. If you need someone to help you, a few rupees of baksheesh might just be what you need to convince them to do so. Even if you lose your passport and travel documents, pay a few bucks to hitch to an embassy and pay a few more to have them replaced. Cash may also be the limiting reagent for your tour. For many a tourist, when the money runs out the tour is over. But if you have the wrong money at the wrong time, you might as well be using Monopoly money.
Image: Monopoly moneyĀ - which is surprising useful if you're actually playing Monopoly. And please...set yourself up for success and buy the orange properties.
FIRST! Research Research Research: If you read the piece about travel documents, you will recognize this familiar refrain. You need to know what the exchange rate is BEFORE you go to change money. Failure to know this tidbit of knowledge greatly increases your chance of getting ripped off. Where do you find this valuable information? Go to the internet of course. I like x-rates.com. And while youāre there take a look at the stability of the currency. In some countries, the currency is so unstable you may be better off sticking with US Dollars or Euros anyways.
The Black Market: There are a few ways to exchange cash during your tour. The first of these methods is a black market money changer. This could just be a smarmy guy carrying a wad of bills who touts near the border crossing. You can use these guys. I did once because I had no choice. It resulted in a hilarious situation where we both sat down in a restaurant and pulled out our calculators together much to the entertainment of the other patrons. Your results may differ and if you go this route do recognize you're taking a risk. Remember you will want to know the exchange rate in advance as the rates will probably not be posted. I prefer to do the transaction in a semi-public place so my chance of being mugged is reduced. Opinions on this will differ greatly so assess the situation and act accordingly.
Money Changing Establishments: These are small places that specialize in changing money. You may find these in the airport or around border crossings. Some of these are affiliated with banks and some are not. The exchange rates at these houses are generally not great. But they do usually have their rates posted so thatās good. I find that the exchange houses near the borders are good to get a minimum amount of cash required until I find my way to a larger city with ATMs.
Banks: Many of the larger banks will change money for you. In my experience banks generally offer the worst rates with the highest fees. They do offer high security, a posted exchange rate, and ATMs (more about this later). Banks also offer the ability to cash advance a credit card, receive a wire transfer, or exchange travelerās checks. Fees for these transactions may be high so watch out.
ATMs: ATMs are my preferred method of getting money in a foreign country. The exchange rate from ATMs is generally the best you can find. Bills are usually in excellent condition, but they're also frequently of high denomination so they may not be immediately usable. Using ATM's can also reduce the amount of cash you have on your person at any given time.
Credit Cards: Credit cards can also be used for purchases and cash advances. Just watch the fees. Credit cards charge extra for cash advances and many of them also charge a service fee for changing money ā even for credit card purchases ā so read your terms and conditions carefully. A great exchange rate doesnāt do you much good if they're taking 5% off the top.
Do your research for exchange rate and currency stability in advance.
Use your own calculator to double check the rate ā particularly if you're changing money at a place thatās a bit shady. Some changers may use sleight of hand or even rigged calculators to put the rate artificially in their favor. I carry a small calculator in my bag specifically for this purpose.
Count your money carefully. Remember you may not recognize the values of the bills and coins as readily as you recognize the money in your home country. Take your time.
Aim to get bills that are in good condition. In some countries, bills in poor condition may not be accepted by all merchants.
Also aim to get a decent amount of smaller bills or coins. In some places it may be next to impossible to use a bill that is even is as āsmallā as a $20 equivalent. Small bills can be difficult to obtain when using an ATM.
Optimize your exchange rate. If you're in a place where the exchange rate is high, just exchange a small amount of money to get yourself to an ATM where you can get a more favorable rate to exchange a larger sum. This is one of my favorite tricks.
Every time you change money you lose a little, so try to convert only the money you need to make it to the next border.
In most cases, you will get better prices if you use the countryās currency even if merchants accept money from your home country. This isnāt always true so do your research.
At some point in the future, Iāll write about how I like to manage my money on the road. Good luck out there.
Now go out and cross some borders!