HOW TO ACCESS YOUR MONEY
Overall, the best general strategy to get at your money is always a combination of methods and back ups (i.e. have a debit (ATM) card, credit card and some cash or even some travellers cheques – with the latter being for emergencies) and use an e-wallet where ever possible. It’s also recommended that you do not carry your card (ATM or credit) around with you at all times if you can help it. For various reasons, it’s best kept in your main bag unless you are using it.
1. CASH.
Black Market Money Countries. In countries with a black-market money supply, cash is the only way to carry your money. These always involve countries with high inflation where the country’s own currency is devaluing at such a fast rate, that it is much better to not have any of it – you only want US dollars or Euros: Venezuela, Uzbekistan, Nigeria, Angola are the countries I have traveled in with black market currency. Here are some rules for changing money on the black market.
1. Never use anything other than cash. ATMs and credit cards get the currency at its official rate – always worth much less – do you really want to lose 50% or more of the value of your money instantly?
2. Tend to change small amounts regularly. Unless you get some fantastic rate, the rate changes on a daily basis, and usually not in the currencies favour, so exchange frequently.
3. Shop around. There are always lots of people who want your money, so you don’t have to look too far. Usually transactions happen in the open, but sometimes in bathroom stalls. Check with several guys and haggle hard. Walk away frequently. They will often improve.
4. If you need money in these countries, you have a problem. There is no easy way to get it – try Western Union but it would be hard to get US$. Even if the ATMs or banks worked, you don’t want them to. So always have lots of cash – at least more than you think you will need.
Cash is, of course, king all over the world, but do you really want to take all your funds in cash? This is a risky strategy. It’s best to set off with from home with just your emergency source of money and certainly no more than enough for your first week. It should be well hidden. Remember it’s probably all at your own risk – no insurance will cover a cash loss. ATMs will probably be cheaper than getting currency of your destination country at your bank before you leave home – ATMs tend to have the best exchange rates.
Be warned about old style dollar bills won’t be welcomed and they must be in a brand newish condition (no tears). These are worthless abroad. Everyone is dealing with US$ and euros and money exchangers all know the old bills. Folds are generally OK.
As soon as you arrive at your destination country, get the local currency at an ATM, always your best exchange rate.
a. Local “hard’ currency. This is always the best to use as can use anywhere in the country you are in. There is no calculating exchange rates. The locals know it. The best exchange rate will always be from an ATM.
Changing money from a US$ or Euros is rarely is a problem but is often a hassle involving a visit to a bank or money exchanger who will not give you great rates.
b. US Dollars. Easily the dominant currency in the world, it can generally be used anywhere. Green backs are always accepted with open arms even in places like Iran or Cuba (although it is cheaper to change euros). But generally, the only US$ should be in your emergency stash (equivalent to 200$US) that should be keep separate from your main money supply. Some should be in a lower value – US$10/20 bills (make sure all is clean and crisp and not the old style).
c. €uros are more useful than US$ in Europe, eastern Europe, the Balkans and West Africa (forget US$ here) but are generally fine in any major city worldwide. Everywhere else ‘undeveloped’ US$ are the currency of choice.
d. Your home currency is often difficult to exchange and is best avoided. The only place where it is easy is in the Gulf states where there are so many expatriates that all money exchangers can deal with most foreign currencies. Even many banks won’t want it.
2. TRAVELLERS CHEQUES
Travellers cheques are a safer option compared to cash, but with a number of drawbacks. Firstly they are pretty prehistoric these days with travel money cards replacing them. Secondly the commission required to buy and sell them and thirdly in some places they can be somewhat of a pain to change restricting you to bank opening times and long drawn out procedures. This is not always the case, but can often be when you need the cash the most and are in a hurry. The irony is where it’s easy to cash cheques you are going to find numerous international ATMs (and vice versa). Any international brand of travellers cheques will be fine (Visa or American Express). Don’t forget to carry your purchase record/receipt with you – you may need it to cash your cheques and very importantly keep it in a safe place away from your cheques and make a note of the claim phone number(s) and cheque number(s) in case of theft. Travellers cheques do have a place where ATMs can’t be found and as a good backup, but can also be costly and a pain – a pain in less developed countries not so much in developed ones – ATM use – if possible – is generally much more practical and the way to go.
3. TRAVEL MONEY CARDS
If you don’t have such a bank card or fees are too high for your liking (as they often are in Australia/USA) then an option is a travel money cards such as Visa Travel Money or an OzForex card, which works pretty much in the same way as a bank card only you don’t need a bank account. You preload cards with cash before use.
4. EMERGENCY FUNDS
Of course keep your cash, debit and credit cards separate to reduce the risk of losing access to all funds, but disasters do happen or you just run out of money. Money wires, such as those from Western Union then save the day.
There are many ways to send cash – best to check online and give the details to a friend or family back home. They charge fees, but paying $20 to get an emergency $200 to the middle of nowhere within minutes is a bargain. You’ll normally find offices in remote locations, even where there is no bank.