Did you know that visiting countries with a favorable exchange rate (where the US dollar is strong), is an easy way to stretch your travel budget without really trying?
In this episode we cover:
- What is a foreign exchange rate?
- How to take advantage of favorable exchange rates to save money on your next trip
- 5 countries where the US dollar goes further right now
What is a foreign exchange rate?
A foreign exchange rate compares the value of two currencies.
For travelers, the exchange rate is very important because when we travel, we exchange our home currency for a foreign currency.
So as an American, I think of it this way, how far will $1 USD dollar get me in another country? How many euros or pesos can I buy with $1 US dollar?
What does it mean to have a strong or weak currency?
With a strong home currency, your money is worth more abroad which means that you spend less on everything. On the other hand when your home currency is weak, your money is worth less. This ultimately means that you’ll spend more on everything.
With that being said as you plan for your upcoming trips, consider visiting countries with a favorable exchange rate to get a bit more bang for your buck.
Don’t forget to support the local economies wherever you visit.
Some easy ways to support local economies include joining local group tours with local guides, eating at locally owned restaurants, buying souvenirs from artisans and staying at guest houses using Airbnb.
Where are the best places to exchange money?
For the best exchange rates, exchange your money at your local bank in your hometown or an ATM when you arrive at your destination. Both options allow you to get local currency at the current exchange rate.
Avoid airport currency exchange counters, they charge exuberant fees unnecessarily.
Alternatively you can use a debit card with no ATM fees or a credit card with no foreign transaction fees. Also for the best exchange rates, always opt for paying in local currency.
To check currency exchange rates use an exchange rate calculator like Oanda Currency Converter.
5 Destinations Where the US Dollar Goes Further
(Exchange rates as of January 2019)
$1 = 5.22 Turkish Lira (TRY)
Turkey is at the top of my travel wish list.
Turkey’s art, culture, and landscape make it an incredibly diverse country. I hope to spend lots of time in Istanbul, but I also want to visit Troy, Ephesus, and go on a hot air balloon ride in Cappadocia.
For more on Cappadocia check out Christopher Rudder’s 48 Hours in Cappadocia Itinerary.
$1 USD = 19.39 Mexican peso (MXN)
So far I’ve had the chance to visit two Mexican cities, Cancun and Mexico City.
During both trips food, lodging and Uber rides were affordable. For big city enthusiasts, I highly recommend visiting Mexico City.
How affordable is Mexico City? Plan your trip with my Mexico City Budget Breakdown.
$1 USD = 69.23 Idian rupee (INR)
India is home to great architecture like the Taj Mahal (one of the seven wonders of the world), the Ganges River (considered the holiest river in the world), sensory overload and history dating back thousands of years. India is also full of eye-opening experiences and vibrant colors.
Did you know that there are 37 UNESCO World Heritage Sites in India!
Here luxurious accommodations are affordable, eating out costs less, and transporation is very cheap. With the recent drop in rupee value, India continues to be a bargain destination for travelers on a budget.
$1 USD = 13.95 South Africa rand (ZAR)
Home to nature reserves like the Kruger National Park and wild safaris, South Africa is the perfect destination for wildlife enthusiasts. There are also plenty of colorful beach towns like Cape Town and museums detailing the history of apartheid.
$1 USD = 37.34 Argentine peso (ARS)
You might be surprised to see Argentina on this list but Argentina’s currency has fallen dramatically recently due to economic crisises.
Flight prices to Argentina are less expensive now and bottles of wine are a third of the price.
What are some of your favorite affordable destinations to travel to?
Looking for the best time to book flights?
Listen to Episode 5 for the latest airfare trends and the best times to buy flights according to CheapAir.com.