Are you running an international business or preparing to travel abroad? You’ll need to swap out your local money for foreign currency. But what’s the most efficient and cost-effective way to do this?
Use this blog to guide converting U.S. dollars to foreign currencies and vice versa.
Foreign currency exchange is simply the process of converting one type of currency, like dollars, to another, like euros. Because most countries utilize a specific type of legal tender — for example, the British pound, Canadian dollar, or Australian dollar — you won’t be able to easily do business or make purchases internationally without swapping your local currency with the correct type of money.
Every currency has its determined value, meaning it’s not generally a one-for-one exchange. To know how much money is necessary, you’ll use the currency exchange rate. This is the amount of money you’ll need or receive when you trade with your local money.
Foreign exchange rates are ever-changing. Some examples that impact these rates include:
Listed below are popular foreign currencies:
| Australian Dollar — AUD Canadian Dollar — CAD Chinese Yuan — CNY British Pound — GBP Euro — EUR Hong Kong Dollar — HKD | Japanese Yen — JPY Mexican Peso — MXN New Zealand Dollar — NZD Singapore Dollar — SGD Swiss Franc — CHF Taiwanese Dollar — TWD |
You can exchange money in many places, but there’s one main option that will likely get you the most competitive exchange rates: your bank. Avoid airport kiosks, hotels, and tourist centers, as they generally have poor exchange rates and higher transaction fees.
First things first, you’ll want to establish what country you’d like to reach with your business. The most important step after that is to visit your local Cathay Bank branch. A team member will help you know what currency you’ll need, what the exchange rate is, any foreign transaction fee to be aware of, and what to expect with the pickup and delivery of your new money. They’ll also walk you through the process for when you return and need to swap your foreign currency back to local money.
Cathay Bank offers clients solutions to travel and do business internationally with ease. Our team provides the following personal banking solutions:
We exchange more than 50 foreign currencies, so you can select the money you need and exchange it with our help. Contact Cathay Bank to learn more about our foreign currency exchange services.
Outside of vacation funding and without foreign currency cash deposit or withdrawal, a foreign currency account (FCA) can help you diversify your assets and conduct foreign currency transactions from a single local bank. A foreign currency account is a type of bank account that allows individuals or businesses to hold funds in a currency other than their local currency. These accounts are particularly useful if you engage in international transactions, or have investments in foreign countries.
The key features of an FCA include:
FCAs provide you convenience, cost savings, and strategic planning so you can get the most out of your money, no matter where you’re located or where you conduct business. At Cathay Bank, we offer a Multi-Currency Call Account (MCA) and Foreign Currency Time Deposit (FCTD) that make it easier to hold a range of currencies and transact around the world. With these account types, you can enjoy the following perks:
This article does not constitute legal, accounting or other professional advice. Although the information contained herein is intended to be accurate, Cathay Bank does not assume liability for loss or damage due to reliance on such information.
