Money rates or what is commonly known as currency exchange rates is one of the most complex things for most people. But much as many people find them complex, they are actually very simple. This is simply a way of expressing how much a certain currency is worth in comparison to another. As such, you must know the factors that influence these currencies. Every day, the exchange rates for currencies fluctuate. Normally, the changes are influenced by the demands on the national and international markets for the particular currencies. Therefore, what must one do in order to convert South African Rand to dollars? It is quite easy as you will see in this article.
Here’s How To Convert South African Rand To Dollars
There are numerous ways through which you can make such a conversion of currency. The fact that you are converting your currency from South African Rand to dollars, probably you are leaving for the U.S. In such a case, you could either convert the currency before you depart or after you land. You could also use your debit or credit card to buy and pay for the items you purchase. That way, the bank or the credit card firm will pay the merchant in their foreign currency. You should note that each technique used to convert currency normally attracts some fee and the most convenient techniques attract the highest charges. Therefore it will depend on one’s preference.
You could decide to use your debit card and withdraw cash from an automated teller machine. If you did not know, you could still use your debit card at a foreign ATM the same way you do while you are home. Most banks in South Africa charge their clients lower rates for withdrawing at foreign ATMs than any other options used to convert currency. In fact, it is considered as one of the cheapest methods for currency exchange. However, if your bank is not part of the network as that of the foreign bank, you should consider using another method as this would prove very expensive.
You could also choose to buy goods using your credit card. This method is quite similar as when you are buying goods with your credit card at home. The credit card firm will charge a nominal currency exchange cost. If you are concerned about the fee, then this is another convenient option. Most local banks in South Africa have an option where you could visit them to make the currency conversion. However, you have to ensure your bank is one of the mainstream ones to get the services. It is used to be a reserve for big banks that are in places with high tourists. Nevertheless, most of the other banks have incorporated these services into their systems. Even if the bank does not have the currency at that particular time, they could still order it for you at a standard fee. This is why it is important to visit the bank prior to when you intend to travel.
Some people prefer using traveller’s checks. You could purchase this at the local bank. The bank will still charge you a small fee for this service. Something good with these checks is that they could be replaced in case you lose them. Therefore, if you are going to high theft areas, they are very effective. One must keep a record proving their purchase and the check number. They will be important in case you need a replacement. However, one great disadvantage with these checks is that it is not easy to find a trader who will accept them.
If you are in a hurry and you forgot to change currency, you could still do it at the airport. However, they have the highest exchange rates ever. They charge very high nominal fees. Therefore, if you have no problems with the exchange rates, this would be a perfect choice for you. Another option would be to do it at the hotel in your destination. Their rates are better than those at the airports. Additionally, there are several online sites that could do the conversion for you. However, this method is expensive since the cash has to be delivered at your destination.
Lastly, you can convert South African Rand to dollars by going to big banks at your destination. They could convert your cash to traveller’s checks or to US dollars. Their fees are higher than those at your local bank.