Factoring Foreign Finances: A Travelers Resource Guide to Currency Conversion

Written by Freight Capital Author: Randy Goddard

International travel usually requires converting money from one country's currency to the currency of country traveled to. In many cases, the value of one currency is not equal to the value of another. For example, when an American travels to London, they will have to convert the dollar to the pound. Sometimes, $1 is worth more than 1£, sometimes it is worth less. In addition to the difference in the value of currency, a traveler will most likely need to pay fees when they convert their money. Currency rates change daily and can even change from bank to bank. Before leaving for a trip, travelers will benefit from doing research to find the best methods of using money in the country they are traveling to and the best places to exchange currency.

Average Exchange Rates

• Foreign Exchange Rates - A chart from the Federal Reserve showing average exchange rates for many countries from the years 2007 through 2010.
• Yearly Average Currency Exchange Rates - Information from the Internal Revenue Service on translating foreign currency to US currency as well as average rates of exchange for the years 2006 through 2010.

Travel Exchange Rates

• How To Exchange Money in a Foreign Country - Article on where and when to exchange currency to get the best rates. It also explains the best form of money to carry when traveling.
• Money Options on Your Travels Abroad - Article originally published in the LA Times on the pros and cons of using different forms of money, such as cash, credit cards or traveler's checks.
• Foreign Currency - A brief explanation of the ways travelers can convert currency from the University of Nebraska.
• Foreign Currency Conversion Fees and the Credit Card Industry - An article on the rise of foreign currency conversion fees charged by some credit cards when a traveler uses the card overseas.
• Managing Money Abroad (PDF) - Article on using a debit/ATM card and credit card when traveling internationally.

Currency Conversion Calculators

• Currency Converter - Simple and easy to understand currency calculator from Bloomberg. Travelers input the amount they want to change, as well as the starting currency and the exchange currency.
• Currency Converter - A more complicated currency converter from OANDA. It also shows users historical and live exchange rates.
• Forex Currency Converter - Information about the Forex currency converter add-on for Mozilla Firefox. The add-on lets uses convert currency by clicking on monetary value on a webpage.

Smartphone Apps

• Currency Converter Review - A review of "Currency Converter," a free app for Android phones and the iPhone.
• How Location Based Apps Are Changing the Travel Industry  - Article on the value of using smart phone apps when traveling. The apps, such as currency converters, make planning a trip and actually going on a trip much easier. Apps are also beneficial for those in the industry.
• The Best Travel Apps - Reviews of several travel-focused smart phone apps from the Telegraph. Includes reviews of a couple of currency converter apps.
• The 22 Best Android Apps - Reviews of apps for Android-powered smartphones from PC World. Includes a review of "ConvertMe."

Tips and Precautions

• Travel Finances and Currency Exchange - Guide for students traveling abroad. Includes tips on carrying money when traveling as well as tips on how to exchange currency.
• Using Money Overseas - Tips on getting money and traveling safely as a student. Includes advice on how to travel cheaply but safely, as well as advice on how much cash to carry, when to get it, and where to carry it.
• Five Tips for Getting Money Overseas - Five helpful tips from Consumer Reports to follow when traveling. A traveler should tell their bank before leaving, for example, so that they do not encounter any problems with blocked cards.
• Tips for Traveling Abroad - Safety advice from the US Department of State for travelers. Includes information on avoiding being a crime victim as well as information on avoiding fraud and scams. Includes tips such as bringing extra money in case of emergency.
• Travel Money - Helpful advice from the UK Foreign and Commonwealth Office on keeping money safe and protected when traveling to a foreign country. Tips include recording credit card numbers and the numbers on travelers checks in case they are stolen or lost. Also include tips for using foreign currency safely and smartly.
• Advice on Using Credit Cards While Traveling Abroad - Travel tips from the New York Times on using a credit card when traveling internationally. The article points out that in some countries, the standard American magnetic strip may not be accepted at all locations.

Freight Factoring Resources