Trust is the main issue preventing P2P exchanges, and is why financial intermediaries like banks exist in the first place.

You might find someone on here to do the trade with. But it's generally not worth the trouble to save a percent or so. I am also assuming that cash out of the atm in most countries is not more than 1.5% worse than the midpoint of the interbank rate, and that you'd be using a card that rebates ATM fees.

I often trade $ and £ for friends. It's perfectly legal and works well for small amounts, where there's no risk of forged notes (ie it's friends). There may, however, be capital gains tax issues, depending upon tax statuses.

However, there's extensive discussion on currency exchange in the Argentina forum here - basically you get 8.5 pesos to the $ out of an ATM and you get about 14.5 if you do it on the grey market. That, of course, is not legal.

You're trying to save money on buying $100 euros? Hardly seems worth it to potentially get ripped off, such as buying fake currency.

A 100 Euros was an example, I plan on buying about $400 or $500 in Euros, enough to stay in Spain for about 10 days, but that is definitely an issue.

How prevalent is fake Euros? Is that a common occurrence?

At that amount you're talking about a maximum savings of 10 euros. What's the point? Why take the risk for 10 Euros? Just use the ATM :rolleyes:

That pretty much answers my question. I had figured it would cost me much more!

Thanks.

I do it with friends when I go to Saigon as it's difficult for them to get dollars. Do it among friends if going somewhere one of us has got leftover currency. Wouldn't do it with strangers as you don't know you aren't going to get scammed (notes switched, counterfeit etc).

Your friends aren't likely to be looking to willfully pass counterfeit notes or to willfully engage in currency moving transactions to avoid anti-money laundering or anti-"war on drugs/terror/whatever" rules related to financial transactions. Also, doing transactions with "bad" parties sanctioned by the government -- even when negligent about the counterparty being on a government sanctions blacklist -- can invite legal trouble.

Thanks everyone.