Do you remember those days when Travelling was easy and convenient? Before the global Covid-19 pandemic. You could plan a trip to go anywhere in the world without any hassles whatsoever. Unfortunately, buying foreign currency can cause more difficulties in your international travel during COVID19.
“With the current global pandemic, there is so much admin required before going on a trip. Amid making all necessary reservations, you need to ensure that you carry enough foreign currency. This is usually the most under-planned element, causing travel budgets to overshoot. Therefore, it is crucial to manage your forex while travelling abroad,” says Joseph Winer, COO, Money Group.
To better manage your personal and business forex while travelling abroad, Winer, shares tips on how to make your travel easier and convenient.
Five forex tips to use while travelling during Covid-19:
The right channels: There are only two channels from which you can get forex such as Banks and Bureau De Changes. The first thing to keep in mind is to make sure that the supplier is authorised, by the South African Reserve Bank. Most Banks and money Bureau’s take minimal fees per currency and are the best places to exchange money from and to.
- Credit cards/Debit Cards/Prepaid Cards: Most credit/debit cards tend to work across the globe; however, banks charge890-=]789+ additional fees for each transaction – whether you withdraw funds or swipe the card in a foreign country. Hence it is advised to apply for and take along a borderless prepaid card. These allow you to load up to eight currencies and do not levy a hidden fee upon use.
- Travelcard: A Prepaid Debit Travel Card allows you convenience whilst providing you with full control over your travel funds and makes it easier to budget for your next trip away. These travel cards work like prepaid credit cards, i.e., you load a certain amount of money onto the card before you go abroad and then you draw it out at cash machines while you are away. You do pay a very trivial fee on a travel card, but it is a much lower rate than you would pay when you use a normal credit or debit card to draw money from your bank while you are overseas.
- Buy Forex in Advance: The forex exchange rates keep changing over the course of the year. We advise you to keep track of the ZAR to currency and purchase your forex up to 30 days in advance before heading off on your trip. Last moment transactions sometimes provide you with a comparatively higher rate, cutting off a lot from your travel budget.
- 30-70 Rule: We advise you to follow a simple rule of “30-70” while travelling abroad on your vacation. This rule suggests you divide your travel spending money into a ratio where 30% of it is kept on your person as cash and the rest of the 70% is kept with you as e-money on your card. This ensures you have enough money in hand for on-the-spot purchases or emergencies and prevents extreme loss of funds in case of theft or loss of your wallet.