A little piece of my wallet dies everyday. As an American, I live on the world’s worst currency- the US dollar. Over the past few years, the value of the American dollar has steadily declined. The dollar now only gets 1.5 to 1 to the British Pound, 65 Euro cents, and is at historic lows verse the Yen. Needless to say, it’s hard being an American tourist right now.
As a constant traveler, I worry about the way currency moves like only a Wall Street trader would. Small changes in the dollar or other currencies can really effect me. My budget for Australia was $1000 dollars short because of the strong Australian dollar. I got extra when I went to Thailand because the Baht had happened to weaken a bit. I watch the currency to know when to withdraw money and when to hold off on the ATM run. Sometimes you can’t help it- you need money but I try to be careful. On a short holiday, currency changes aren’t that big of a deal. You’re not gone long enough nor are you changing lots of money. Yet when you are gone for months or years at a time and making frequent ATM withdrawals, little changes in a currency can make a big difference.
However, there are a few ways to protect against a weak dollar:
First, use a card like Capital One. This is a little thing we can all do. Capital One credit cards have the best conversion rate and don’t charge you an foreign transaction fee. It’s a great card to travel with as you know you’ll get the best rate without any fees. I recommend everyone getting one. It is the BEST card to travel with. Use no other!
Secondly, get cash when the rate is high. This requires a little work and for you to be OK with carrying cash. You’ll need to know what the rates are so that you know what a “bounce” looks like. When I was in Thailand, the Australian dollar dipped and I took advantage of it and got myself an extra 200 dollars before the rate jumped again. No one has a crystal ball and sometimes the rate might go higher but this is a way of protecting yourself in case it doesn’t!
For those without the desire to watch currency rates like Gordon Gekko, there’s another option: find places where the dollar is good. There are still places left in the world where the dollar goes far. Many of them are off the beaten path or are newly developing tourist destinations. This means you not only get to go somewhere unique and different but you can get cheap travel deals!
Here are some places where the dollar is still worth something:
Vietnam- Vietnam is opening up more to tourism and is becoming a more popular destination each year. It’s not very developed yet and still a great bargain. When I was there, I spent about 8 dollars a day. Many of the people I traveled with spent more but it is quite easy to get by on an “upscale” budget of 30 dollars a day.
Eastern Europe- Though the falling dollar and economic growth has made Eastern Europe more expensive than it was in the past, it is a still a bargain when compared to its western neighbors. The further east you go, the cheaper it is too. Cities like Prague, Budapest, Sofia are steeped in old world charm. It’s a way to get to Europe without going broke in Europe.
Costa Rica- One of the few countries to have its currency lose ground to the dollar. A dollar now gets 500 Colons, up from 360 a few years ago. Though the country is one of the most expensive in Central America, your dollar goes a lot further than it used to there making it a good bargain. Costa Rica is a beautiful place and my favorite Central American country. Everything you want is there and the people are amazing.
Central America- Most countries in Central America are very cheap and incredible pristine by most standards. Countries like Nicaragua and Honduras are just opening themselves up to tourism and let you experience undeveloped countries. Guatemala holds ancient wonders like Tikal and beautiful beaches in Antigua while Honduras has great diving and surfing. Additionally, efforts to appeal to tourists have led in the building of more infrastructure and cracking down on crime.
Argentina- Another country whose currency has lost ground to the dollar. Argentina is an amazing place filled with history, football, and nature. The food here is excellent and the country is famous for its wine and steak. Beunos Aires is considered one of liveliest cities in the world and most people here speak English.
Cambodia- An incredibly cheap country where rooms can cost as little as $2 dollars a night. The currency of choice here is dollars too. ATMs give them out, things are priced in dollars, you get change in dollars, everything is 1 dollar- it makes converting pretty easy. A dollar everywhere can add up but, on the whole, I found the country to be cheap, friendly, and safe. Out of all the countries I visited, I expected the least from it and got the most.
All of these countries can provide a different and cheap alternative to Europe, Australia, or Japan. There is still hope out there, it just requires different thinking and some alternative destinations. And do you really want to be where the crowds are? Europe’s churches will be there 10 years from now but the jungles of Central America? The rice fields of Asia? The old world of Eastern Europe? Probably not. With a weak dollar, it is time to think different.
Your dollar is worth 41 pesos here so ur dollar will go along way in visiting the more than 7000 islands of my country.
have a safe trip.
not really because something that would cost a dollar here would cost 41 pesos there so it ends up being the same. de donde eres?
The current crisis in the USA and their intentional policy of a weak dollar hurts travelers all over the world; especially those who really just do travel and are in need of refilling their wallet from overseas. Still there are ways to keep your currency risk to a minimum and prevent loosing too much if the dollar exchange rate goes not in your favor.
In the end it is all about perspective — Southeast Asia is still very cheap compared to many other places in the world and even though a weak dollar might cost you an extra beer on your night out, the party is not stopping right there.
more here: Weakening dollar worries travelers to Thailand
I agree about the Capitol One card — we travel with ours, too, and have never had a problem or complaint. It’s amazing in recent years how much less exchanging we can get away with during travel–I still remember storing traveler’s checks and wasting precious travel time looking for places to cash them, and feeling robbed by the extra fees!
Thanks for giving us a nice tips in traveling.
I have a little question about albergues Barcelona in Spain, If you have idea please to me!! Thank you very much…
What about Belize? I ave to go somewhere from September through December fortax purposes ad I am looking for someplace cheap.
Wall street and corporate america likes the weak dollar to sell their products made in China
over seas. It makes me sick to be an american with the greed that still exists from the
Bush Administration. Obama has not changed a thing and I new he would not. Merechants in
Spain and France told us without Americans traveling to spend they will go out of business.
I have famiy in France and Family in Ireland, on my side who have never been to the U.S.
I am told from them that without the U.S. travelers their businesses are closing up.
What should the American people do about this situation????