How to exchange foreign exchange for studying abroad is more cost-effective

First, introduce some basic knowledge about foreign currency: there are several ways to realize payment abroad:

First, change your RMB into foreign currency in a domestic bank (such as Bank of China). Now you can handle it with your ID card, and no other formalities are needed. Domestic banks can only exchange several international currencies, and the US dollar is the most popular. In addition, there should be pounds, euros, Singapore dollars, Australian dollars, Japanese yen and so on. If you want to go to a destination other than the above countries, you should change US dollars first and then change them at the destination.

2. Take RMB abroad and change it into foreign currency that RMB can be exchanged. For example, many commercial streets in Hong Kong can find places to exchange foreign currency.

Third, take your credit card that supports foreign currency settlement, such as VISA card of China Merchants Bank (there are many kinds, please ask whether it can be used abroad when applying) to the merchants that support credit card consumption abroad.

4. After changing your money into foreign currency, remit it from China to an overseas account, and then take it out from the local bank. In this case, it is generally not necessary to travel at one time.

Take a traveler's check issued by the bank and change it into local currency abroad. Banks in this country don't seem to be very popular, which should be because RMB is not the international payment method like the US dollar.

Now let's talk about the exchange rate.

You should see clearly the performance of the quotation on the exchange. In China, the usual expression is how much RMB is exchanged for every 100 yuan, so you will see the figure of 600-700 dollars, which means that every 100 dollar can be exchanged for 600-700 yuan RMB. In foreign countries, the expression may be different, which may be the number of foreign currencies per 1 yuan, or the number of foreign currencies per 1 yuan, so we should make it clear carefully. Flying bear used to joke. See flying bear's Thailand post.

The first basic knowledge of exchange rate is that the exchange rate of buying and selling is different. There will be a handling fee in the middle of one entry and one exit. The frequency changes too much. Your money will be thrown around.

Experience 1: there must be a plan for foreign exchange. If you change too much at a time and finally change it back, it will waste the handling fee.

Second, exchange rates vary from country to country. Chinese mainland has a unified exchange rate. Generally speaking, when you exchange foreign currency in different places, the exchange rate is the same. Even if a handling fee is charged (such as changing money at the airport), the handling fee will be deducted in the open. In many other countries and regions, the exchange rate moves with the market like radish and cabbage. Hong Kong's exchange rate is three steps away, and local prices may be different.

Experience 2: If you change money in China, it is most cost-effective to queue up at the bank, and no extra handling fee is required. At present, 50 yuan has to pay a handling fee for every transaction at the airport. When you exchange foreign exchange with floating exchange rates overseas, you have to shop around like you buy something.

Generally speaking, both at home and abroad, the exchange rate and price are similar: it is the least cost-effective to exchange foreign exchange in a star-rated hotel. Followed by airports and other places with a large floating population. It is generally the most cost-effective to go to the bank to queue up honestly. Then, besides shopping around, is there a more ingenious way to know whether it is cost-effective to exchange foreign exchange somewhere?

Flying bear has a clever trick: you only need to separate the exchange price from the exchange price, and you will know how much money the bank has earned in and out. For example, the above picture was taken in Europe. Take the last Egyptian coin as an example. It costs 9.03 Egyptian coins to exchange one euro, but when you use 1 euro to exchange Egyptian coins, you can only exchange 6.87, and the middle loss is: 1-6.87/9.03=23%, that is to say, the bank takes 23% of your money for nothing once in and out! ! ! And this store has to charge an extra 3 to 7 euros, which is simply dark.

Experience 3: As long as you go to several stores and calculate the difference between the two currencies, you will know whether the bank or exchange point is black or not.

Look at USD:1-1.3264/1.6171= 18%, and USD loss18%. What is the reason why the loss is smaller than the Egyptian currency?

Experience 4: If you exchange a currency that is not popular in the local area, the loss is greater than the popular currency.

This is because dealing with an unpopular currency has to bear higher cash transportation and exchange rate risks, so the exchange cost is higher. So no matter where you change money, try to change it locally. For example, if you want to travel from China to Thailand, you can't exchange Thai baht directly in China. The best way is to exchange dollars at home, and then take the dollars to Thailand to exchange Thai baht. Because the dollar is almost the most popular currency in the world. The loss of taking it around the world to exchange local currency is relatively small. Flying bear made a mistake. Take RMB to Hong Kong for Thai baht. Although it can be exchanged in Hong Kong, Thai baht is not a popular currency in Hong Kong, so the loss is large.

Experience 5: The handling fees of domestic banks are much lower than those of foreign countries. The handling fee for the entry and exit of popular currencies is only 1% to 2%, which is far lower than the foreign exchange handling fee in Europe and America (as shown above), because the people in China are very kind.

If you don't believe me, I'll compare the prices on the website of Bank of China now:

For example, USD cash:1-693.99/702.4 =1.2%. Bank of China only accepts 1.2%.

Let's take a look at Thai baht:1-21.8/22.45 = 2.9%, but the handling fee of 3% is much less than the exchange difference at Amsterdam Airport in Europe. Capitalism really kills people!

This experience tells us that if you can change the currency you need at home, try to change it at home, not abroad. Even if you can't change the currency you want in China, you can consider changing RMB into dollars or euros first.

Experience 6: The handling fee for changing a credit card is about 1.5% each time (see the instruction manual of your credit card application for details). Going to Europe and America may be more cost-effective than carrying it with you after cash exchange. In this case, you should use credit cards more.

For example. If you go to Europe and can't exchange euros directly at home, you have to exchange dollars first. Then after you go to Europe with US dollars, just wait for the above 18% handling fee! (9% unilaterally), and if you use a credit card, the amount of euros you spend will be converted into dollars first, and your credit card company will automatically use the RMB in your account to purchase foreign exchange for repayment, even if you charge the exchange fee twice, it is only 3%. So it's more cost-effective than cash. If you take a credit card abroad to withdraw local cash, you will be charged an extra cash advance fee. There is no direct consumption cost-effective, but it can still solve the urgent need when cash is urgently needed, and the exchange rate may still be better than cash. As for the specific handling fee of cash advance, you can check with the issuing bank of your credit card.

Experience 7: In Hong Kong, UnionPay credit card is used for settlement in RMB (according to UnionPay's publicity), so there is no foreign exchange purchase fee of 1.5%.

In this case, it should be the most cost-effective to use a credit card with the UnionPay logo in Hong Kong.

Experience 8: In some countries, the exchange rate of traveler's checks is better than cash.

I personally remember that there is a difference in the exchange rate between cash and US dollar traveler's checks in Japan. So is China. This is probably because it costs money to send cash back to the issuing country of the goods bank, but traveler's checks are not needed. Friends who know finance can correct me. This is why China has "current price" and "spot exchange rate", which is used for remittance, traveler's checks and other non-cash payment methods. Take the USD of Bank of China as an example. When the spot exchange rate goes in and out, the exchange difference is only 1-699.6/702.4=0.4%. Really not high.

All right, that's all. Welcome to add corrections.