CURRENCY Question....

Question

basically im from the Uk..

i went on holiday to the USA

so when i come back i will have signfically less money because 1 pound is 2 dollars...

to be able to get as much money as possible what currceny do i change the dollars to before changing it into a pound?

Answer 1

Every time you make a currency transaction (buying or selling one currency for another), you lose money.  The reason is that the 'Buy US dollars in UK pounds rate is different than the 'Sell Us dollars for UK pound" rate.  The difference (called the spread) is the profit the exchange place is making.  That various will change depending on when you make the deal, and which currencies you're using.  Larger ones (US, UK, EU will have a lower spread, smaller currencies (say Morocco, or South Africa) will have a larger spread.  What that means for you is that you might buy US dollars for say .5 Pound each ($2 per POUND), but when you go to transfer any remaining cash when you return, they may only give you say 1 POUND for every $2.10 US.  That means you lost real money.

So you see, if you transfer it into any OTHER currency along the way, you're just adding to that loss, since that other spread gets involved.

Transfer as little as you can, use credit cards where applicable (their rates are very good believe it or not), and accept the rest as the cost of your vacation.

Answer 2

That answer changes daily.