what countries is foreign currency the best to use

[talkamotta]

We are going to Australia and New Zealand next week. Thanks for the thread on New Zealand. I was wondering if it was necessary to get foreign currency or is the US dollar ok. I know the US dollar is exchanging better than the Austrailan dollar. What would you suggest?

 

[Dave M]

With very few exceptions, it's far better to exchange your U.S. dollars for local currency of the country you are visiting and then use the local currency. The foreign exchange rates offered by retail establishments are typically horrendous and can easily add 10% or 15% to the cost of the goods or services you are purchasing.

Whether you exchange here, exchange there or use an ATM machine to get local currency, the rates will typically vary only a percentage point or two.

Also, consider using a credit card for most of your purchases, especially if your bank doesn't add a surcharge for the foreign exchange. If you aren't sure, call your bank's customer service and ask.

 

[Judy]

We spent 5 weeks in Australia this fall. We never used US currency, nor did we ever see anyone else use it. I don't think it's accepted there. We used our American Express card when we could because it had a lower surcharge, 2%, then our MasterCard and Visa, 3%. But at least the credit cards gave us a better exchange rate than we could have gotten from a currency exchange or bank with travelers checks or cash. For our cash expenses, we used the ATMs to withdraw Australian dollars from our US bank account. Again, the exchange rate was pretty good, but we had to pay several dollars in ATM fees everytime we got cash. So it's a good idea to budget for as few withdrawals as possible. The exchange rate we could have gotten in the US before leaving was terrible.

 

[Sydney]

Australian and New Zealand retailers do not use American dollars. In general, most first world countries only accept their own currencies. Most places accept Visa and MC, some will accept Amex. Your best bet is to use V or MC and cash for small purchases.

When we went to Vietnam, they used American dollars.

 

[Cotswolder]

Why shouldn't you use the local currency ????

We returned from Australia three weeks ago and only used Visa or Mastercard for major purchases.
Our statement shows the exchange rate was very good using this method.
For smaller purchases we used cash obtained from ATMs. As charges can be made by banks for this service it is best to get largish amounts out to minimise the charge

 

[limey]

We find it easier to work with the local money as even if you use US in countries that take it IE the carribean they usally give you change in there funds which means you have to try and figure out if you got the right change agood exchange rate and so on.
Just my opinion.

 

[talkamotta]

Thanks for all your help

Leaving tomorrow, cant wait to get that flight over. Thanks to everyone