Euro questions - 1st timer

[jnv]

We are cruising in Oct 2010 out of Barcelona to Florence, Rome, Naples, etc. I am wondering should we exchange our US dollars for Euro at this time? We have tours booked that only accept euros or euro traveler checks - can anyone advise me as to what we should do? We will be taking credit cards for purchases, but still will need at least $2500 US dollars exchanged to eruos. Is it better to get Euro traveler checks or cash? where is the best place to convert? Thank you for any advice.

[chipmaster]

If the private tours say they take travels checks you could take just enough to pay for them. For everything else I'd take cash or plan to hit the ATM after you arrive and get extra 200-400 dollars worth of euros.

 

The best rate always comes from ATMs but if you think your time in port will be busy and you don't want to go looking, or have to look for an ATM then it makes sense to get the combo of travelers checks and euros before you go. You can cash USD checks at the pursors desk but dollars to euro exchanges on the ship at least on the ship I was on are thru a change machine that has bad rates and charges a an additional exchange fee.

 

Your local bank won't have the best rate but if you want convenience the small fees IMHO is the cost for convenience. I just called my bank and they had my cash in two-three days. IMHO in this day and age of wide spread acceptance of CC and ATM cards you find that fewer and fewer places take travels checks. So I'd plan cash or CC for everything. I like you had the need for a LOT of cash, in the end just took the thousands of euros as cash and kept most of it in the hotel/cabin safe. For whatever you budget take a little bit more, in the end I ran short and did hit an ATM everywhere possible.

 

As to is now a good time to get the cash/exchange, no one knows for certain if the Euro will dip more or recover. Just be happy as when I went it was close to 1.6, its a screaming bargain at the moment and rightly so given the current debt and political issues :eek:

 

Good luck,

 

We are cruising in Oct 2010 out of Barcelona to Florence, Rome, Naples, etc. I am wondering should we exchange our US dollars for Euro at this time? We have tours booked that only accept euros or euro traveler checks - can anyone advise me as to what we should do? We will be taking credit cards for purchases, but still will need at least $2500 US dollars exchanged to eruos. Is it better to get Euro traveler checks or cash? where is the best place to convert? Thank you for any advice.

[anniversay/grad trip]

We are cruising in Oct 2010 out of Barcelona to Florence, Rome, Naples, etc. I am wondering should we exchange our US dollars for Euro at this time? We have tours booked that only accept euros or euro traveler checks - can anyone advise me as to what we should do? We will be taking credit cards for purchases, but still will need at least $2500 US dollars exchanged to eruos. Is it better to get Euro traveler checks or cash? where is the best place to convert? Thank you for any advice.

 

There has been alot of threads debating which is cheaper...to purchase in advance or use ATM's once in Europe. I personally, am the type of person that likes to have everything done prior to leaving for vacation so I purchase in advance and then have each tour amount divided into envelopes and distribute them as needed. With the Euro at an all time low right now, I am not sure that I would wait until October to purchase, but then again the Euro may drop even further...who knows?

[baggal]

Many financial "experts" and economists are predicting that the value of the Euro will continue to fall. But who really knows.

 

I would look at it this way: what was the value of the Euro when you booked your cruise? Most probably higher than it is now. So I would wait and watch since your cruise is in October. If it starts moving up, buy. If it stays the same or drops lower, wait until about two weeks before you leave for your cruise.

[moyaroo]

Actually the euro is at a recent low and far from an all time low. BW during the late Clinton years the exchange was actually just about oppositte. 1 US dollar buying about 1.25 euro. Then Bush came along and started talking about his support for the strong dollar and voila even before Brownie/FEMA/Katrina the Bush suport effect took hold and the dollar slid like a rock.

[KKSpea]

We exchanged at the airport for no fee and the current (for amounts over 500). They even guaranteed the rate to exchange back on the return trip. The Euro fell during our trip and we exchanged back at the better rate. The exchange kiosk was even at the exit of customs on the way back (at PHL). Don't take trav checks, just cash. Be sure to have a money belt or something because this place is pick pocket capital of the world!!

[chipmaster]

All I want to know is how much of their personal assets have been moved into hedging to their prediction :D

 

On a serious note unless one is exchanging millions of euros is even .2 swign which is simply huge going to matter that much. And again just like the market one good bailout package or one good riot will swing it 180 degrees.

 

Many financial "experts" and economists are predicting that the value of the Euro will continue to fall. But who really knows.

 

I would look at it this way: what was the value of the Euro when you booked your cruise? Most probably higher than it is now. So I would wait and watch since your cruise is in October. If it starts moving up, buy. If it stays the same or drops lower, wait until about two weeks before you leave for your cruise.

[seabreezer]

So to drill down for a little more detail on this issue I called my bank and received conflicting reports. To buy Euros from BofA before we go there is a $7.50 flat fee but the exchange rate is the "retail" rate - about 5% more than the market rate. When I asked about ATM's the answer at least from BofA is that if the ATM is with an affiliated bank such as BNP Paribas then there is only a 1% fee - all others 1% plus a $5 transaction fee but what's confusing is what is the basis? Market rate or "retail" rate? After speaking to several people at BofA I received conflicting answers. Does anyone have any actual experience to share?

[olwagner]

Many financial "experts" and economists are predicting that the value of the Euro will continue to fall. But who really knows.

 

I would look at it this way: what was the value of the Euro when you booked your cruise? Most probably higher than it is now. So I would wait and watch since your cruise is in October. If it starts moving up, buy. If it stays the same or drops lower, wait until about two weeks before you leave for your cruise.

 

Over the long term (read: about a decade), the Big Mac index (don't laugh) works quite well, and it is currently predicting an exchange rate of 1.06 Dollars per euro, so chances are that the value of the Euro will continue to fall (unless inflation differential quicks in, but that's another story).

 

Over shorter periods, your guess is as good as mine and - assuming the exchange rate follows a random walk (and no, that's not a term used to descibe a drunk guy - don't laugh) - if your cruise is to take place in less than a decade, it would be fair to assume that the exchange rate then will be the same as it is now. Again, that does not mean that it will be but since we can not predict where it will be - or even in which direction it will move over short periods -, that is our best guess.

[Earl Rosebery]

We are cruising in Oct 2010 out of Barcelona to Florence, Rome, Naples, etc. I am wondering should we exchange our US dollars for Euro at this time? We have tours booked that only accept euros or euro traveler checks - can anyone advise me as to what we should do? We will be taking credit cards for purchases, but still will need at least $2500 US dollars exchanged to eruos. Is it better to get Euro traveler checks or cash? where is the best place to convert? Thank you for any advice.

 

Forget about traveller's cheques. Convert 500 US into euros anytime between now and when you leave. Predicting which way the exchange rate will go is for professionals and they are wrong half the time. When in Europe, get your euros from ATMs. You will need a 4 digit PIN. They provide the best exchange rate. Carry your ATM card and large amounts of cash in a money belt. I had my pocket picked in Madrid. They were very good at it but I might as well have had a "rob me" sign on my back. Lucky not to lose my driver's licence and passport.

[zekekelso]

Many financial "experts" and economists are predicting that the value of the Euro will continue to fall.

Whatever price the Euro is trading at today is approximatly the price where half the traders think it will go up, the other half think it will go down.

 

Reasons to buy now include (1) getting it over with, or (2) locking in today's rate. If you can afford you excursions today, but an exchange increase will push them out of your budget, it makes sense to go ahead and buy.

[OhioDogLover]

I checked a couple of places yesterday and we were looking at about $132 with 3 business day delivery for Euro.

Our private tour doesn't take travelers checks or credit cards, so we will be getting cash somewhere.

Ohiodoglover

[Pfg]

So to drill down for a little more detail on this issue I called my bank and received conflicting reports. To buy Euros from BofA before we go there is a $7.50 flat fee but the exchange rate is the "retail" rate - about 5% more than the market rate. When I asked about ATM's the answer at least from BofA is that if the ATM is with an affiliated bank such as BNP Paribas then there is only a 1% fee - all others 1% plus a $5 transaction fee but what's confusing is what is the basis? Market rate or "retail" rate? After speaking to several people at BofA I received conflicting answers. Does anyone have any actual experience to share?

If y are planning on buying over 1,000 dollars, don't forget BOA won't charge you their infamous $7.50 for delivery. I've been calling different places to find out their exchange rates and/or additional fees, and I can tell you that right now seems more convenient to go with BOA or even Wells Fargo. Travelex at DFW airport, at least last Monday, had it at $1.41 versus BOA at 1.32 (delivery fee included), and American Express the same Monday, at $1.32 plus a $5.00 dollar-fee. I try and see it this way. When you bought your ariplane tickets, you paid so much, right?....some say it is better to buy the tickets months prior to the trip, some say, no, wait after the summer (talking about traveling in October). Now, the secret is, if you bought your tickets already... great !!! don't go back and look how much are they running now. Same with the euros. Today, the exchange rate in BOA is $1.28, same as in Wells Fargo.... if you buy them today... please, don't go back to keep looking if it is going down... because it is going to be frustrating if it does. Just, be happy with the exchange rate, and think that for sure, your euro purchase was a lot more convenient than buying them a month ago.

What do you think?

[seabreezer]

Thanks. Still wondering if anyone else has gotten a firm answer on the ATM rate of exchange ... is it the inflated bank "retail" rate or the pure market rate.

[trim2gofast]

I have been trying to figure out what to do regarding buying Euros today as well. Conveniently, this article appeared in the Washington Post today:

http://www.washingtonpost.com/wp-dyn/content/article/2010/05/13/AR2010051305134.html?referrer=emailarticle

[Nebr.cruiser]

I checked a couple of places yesterday and we were looking at about $132 with 3 business day delivery for Euro.

Our private tour doesn't take travelers checks or credit cards, so we will be getting cash somewhere.

Ohiodoglover

 

Wow. Our bank charged $10 for the 500 Euros we bought pre-cruise--we didn't pay the five or so dollars extra for overnight service, but they came in two days anyway. Does it cost more to buy more?

 

It was great to have enough on hand to pay for everything in the first three ports. When we hit Rome post-cruise we got more from ATM's. Our one mistake; we should have figured better approximately what we would use in Rome and made only one withdrawal, rather than three, to save fees.

 

We never use ATM's at home (I had to practice using one at the local Wal-mart before we left!), so it was nice that it was so easy to do in Rome.

 

Being reluctant to use ATM's in a foreign city, (since we are so inexperienced at using ATM's) we checked some money changing kiosks; the rate was stupendously bad, like $1.70 to one, when the official rate was something like $1.35.

 

Luckily, when we were ready to use the ATM, a nice American student was there before us and helped us out.

 

Also, on our ship (Navigator of the Seas) we tried to change dollars for Euros on the last night, thinking to get enough for Rome. The purser's desk told us they don't do this, ever.??? So if you are planning on doing this, check with your cruise line to be sure.

[TanyaE]

Thanks. Still wondering if anyone else has gotten a firm answer on the ATM rate of exchange ... is it the inflated bank "retail" rate or the pure market rate.

IMHO I don't think the bank will sell for less than retail. The market rate is a wholesale rate for the banks. If you think about a large retailer of anything this makes sense. Say, you decide to buy a shirt from Wal-Mart. It costs $20 for 1 (that's retail). Wal-Mart buys your shirt in a 100 case lot for $800, that would be only $8 for the shirt wholesale (market) rate. The mark up is to cover profit, price (exchange rate) fluctuation, and operating costs.

 

I think your best bet is to take some Euros with you. Buy some now if you have the money. Changing the cash to an un-spendable currency is a pretty effective means of saving. :) . I wouldn't take thousands since, as another poster pointed out, pick pockets are everywhere. I would take about half the cash. Get the rest out of an ATM part way into your trip.

 

That's just what I would do though.

[cruisemom42]

Thanks. Still wondering if anyone else has gotten a firm answer on the ATM rate of exchange ... is it the inflated bank "retail" rate or the pure market rate.

 

As near as I can tell from comparing receipts retroactively, my bank gives me whatever the going market rate is/was for the particular day when I withdrew the money. I am not sure if they simply establish a value for that day or whether it is variable, like the pure market rate, throughout the day -- whatever method, I have found it to be the best method of getting euros. I also use my Capital One card for all credit card purchases.

[cruisemom42]

I have been trying to figure out what to do regarding buying Euros today as well. Conveniently, this article appeared in the Washington Post today:

http://www.washingtonpost.com/wp-dyn/content/article/2010/05/13/AR2010051305134.html?referrer=emailarticle

 

so......pretty much what we generally advise here. ;)

[seabreezer]

trim2gofast thanks for the article. It reinforced what we've been reading here. Combo ATM and CC. Luckily I have a CC without a foreign transaction fee. We'll buy a few Euro before we go and try to hit the BNP Paribas ATM's in France and Italy to reduce the bank fees.

[ActiveTraveler]

Can someone explain what people mean when they say the euro is falling? I know U.S. dollars have always equaled 100 cents (pennies) no matter what the economy is like in America. So I can't imagine the euro is not the same that it was originally. If I convert a dollar amount to euros, how would that be any different now from if I did that back when the European Union invented universal currency?

[cannonball]

Can someone explain what people mean when they say the euro is falling? I know U.S. dollars have always equaled 100 cents (pennies) no matter what the economy is like in America. So I can't imagine the euro is not the same that it was originally. If I convert a dollar amount to euros, how would that be any different now from if I did that back when the European Union invented universal currency?

 

It doesn't have to do with how the Euros are denominated, it means how the Euro is valued compared to the US dollar (or other currency). For instance, several years ago it to buy 1 Euro, it took 1.50 US Dollars, now for 1 Euro = 1.30 US Dollars.

 

So as Americans traveling to Euro countries, when the Euro falls in relation to the US dollar it is cheaper for us.

[TanyaE]

Currencies are valued on a number of economic factors.

 

I live in Canada where we have Canadian Dollars. They are different that US Dollars not only in look, but in the value of what they can buy. A few years ago, when the US economy was strong it cost me about $1.25 Canadian to buy a US Dollar, but with the US economy struggling, the Canadian Dollar actually rose above the value of the US Dollar. It cost me $0.95 to buy a US Dollar.

 

The Euro is valued in the same manner and now the cost of the Euro comparatively is less than is was previously.

 

The individual currency is still comprised of dollar and cents or Euro and cents.

 

You can see the values of many world currencies at http://www.xe.com

The rates quoted on the site will not be exactly what you will pay when you trade your Dollars for another currency, but it should be close.

 

Hope that helps,

Tanya

[cruisemom42]

Can someone explain what people mean when they say the euro is falling? I know U.S. dollars have always equaled 100 cents (pennies) no matter what the economy is like in America. So I can't imagine the euro is not the same that it was originally. If I convert a dollar amount to euros, how would that be any different now from if I did that back when the European Union invented universal currency?

 

Others have explained this, but I just wanted to add an example to help you understand the importance.

 

If I want to spend two nights in Rome before my cruise and my hotel is 250 euro per night, then I am paying 500 euro. A couple of months ago when one euro was worth $1.43 dollars, the cost to me, converted into dollars would have been $715. If the euro continues to fall and let's say reaches $1.15 when I am in Rome this fall, the cost of the same room at the same euro price will end up being only $575.

[Illinoisgal]

I am going to start adding Euros to a card that is like a mastercard but gives you a better echange rate. You can get it in many differant currencies and has a lot of benefits if it gets lost or stolen, plu syou can get two cards one for you and one for your spouse. google it I think it is the travelex cash passport