Originally Posted by
Lamronba
I'm a little confused. Why is exchanging money in the US a bad thing? My bank gives me the current rate, they use XE.com and only charge $7.50 for the transaction.
If true, that that would be a deal. I find it hard to believe, however. Please provide the name of your bank and a link to the information that supports what you say - I'm sure many would be interested.
In most cases, you'll find that the exchange rate used by banks or other institutions in the US is very different from the actual rate that day. For example, the Travelex booths in many US airports use an exchange rate that's about 14% different from the actual exchange rate, even though they say "No Commission". Whatever they want to call it, they're making 14% on each exchange. Banks do this too. Be careful to know what you're really getting. Get an actual quote for an actual date, and compare with the actual rate - don't believe anything they tell you about "no commissions!"
Is the rate better at the airport in Japan?
The rates charged at the airport exchange booths in Japan are consistent over time: 0.5% for Travelers Cheques, and 2.5% for Cash. Compare this with 14% found at many US airports.
If you go the T/C route, be sure to get them denominated in US Dollars. Some banks and others can offer you the option to get T/C's that are yen-denominated, which can then be exchanged at par in Japan. The thing is, they will build a handsome profit into the exchange rate at which they sell you the yen T/Cs that are paid for with USD: often at 6% or more.