Private currency exchange
Jan 23, 2015 | 10:11 am
#1
Original Poster
Join Date: Jan 2015
Posts: 30
Private currency exchange
A few questions for the group.
I want to save the fees associated with exchanging currency at a bank. Is it possible to arrange to buy Euros from a traveler, say, at the airport as I am arriving or departing?
Does it make any sense? Will the traveler and I be able to save money by avoiding the fees?
I assume that it is black market, possibly illegal, but I know that travelers to South America readily exchange dollars for local currency at a much better rate than the posted exchange rate.
Are there any resources online about this?
Thank you in advance for any information.
I want to save the fees associated with exchanging currency at a bank. Is it possible to arrange to buy Euros from a traveler, say, at the airport as I am arriving or departing?
Does it make any sense? Will the traveler and I be able to save money by avoiding the fees?
I assume that it is black market, possibly illegal, but I know that travelers to South America readily exchange dollars for local currency at a much better rate than the posted exchange rate.
Are there any resources online about this?
Thank you in advance for any information.
Jan 23, 2015 | 10:53 am
#2
Join Date: Mar 2004
Location: London
Posts: 2,102
Often at work if I am travelling to a country or currency zone from where a colleague has just returned from I'll offer to buy currency at the ft.com middle rate. I don't know if such private deals are illegal.
I remember once when working in France an English tourist came into a Citibank branch and asked to exchange his pounds into euros. The bank said they did not do this. Meanwhile we earned in euros and always wanted to exchange our excess cash into pounds. So we had a quiet word with him and exchanged the money. We took out fresh euros from the Citibank ATM just so he was sure we were legitimate (except for the possible illegality of the whole exchange thing!).
I remember once when working in France an English tourist came into a Citibank branch and asked to exchange his pounds into euros. The bank said they did not do this. Meanwhile we earned in euros and always wanted to exchange our excess cash into pounds. So we had a quiet word with him and exchanged the money. We took out fresh euros from the Citibank ATM just so he was sure we were legitimate (except for the possible illegality of the whole exchange thing!).
Jan 23, 2015 | 11:33 am
#4
formerly known as Tad's Broiled Steaks
Join Date: Jun 2004
Posts: 6,424
A few questions for the group.
I want to save the fees associated with exchanging currency at a bank. Is it possible to arrange to buy Euros from a traveler, say, at the airport as I am arriving or departing?
Does it make any sense? Will the traveler and I be able to save money by avoiding the fees?
I assume that it is black market, possibly illegal, but I know that travelers to South America readily exchange dollars for local currency at a much better rate than the posted exchange rate.
Are there any resources online about this?
Thank you in advance for any information.
I want to save the fees associated with exchanging currency at a bank. Is it possible to arrange to buy Euros from a traveler, say, at the airport as I am arriving or departing?
Does it make any sense? Will the traveler and I be able to save money by avoiding the fees?
I assume that it is black market, possibly illegal, but I know that travelers to South America readily exchange dollars for local currency at a much better rate than the posted exchange rate.
Are there any resources online about this?
Thank you in advance for any information.
I was in Myanmar before ATMs were around, and wandered around one of the local market hoping to find an exchanger. Same in Venezuela earlier in this month. Not everyone wants to take the risk - and in those two situations, the countries would have been prohibitively expensive if you went by the official rate - but it is possible, even if it shouldn't be.
Jan 23, 2015 | 11:40 am
#5
Join Date: Sep 1999
Posts: 365
Not illegal, at least for most currencies from stable and democratic countries.
I once traded money from a friend for a house. It was based on trust. The friend paid the escrow agent and I paid them by check.
I suppose you could do that for small amounts with a friend. Maybe you could do it for excess money from a trip. For example, if you had Japanese yen, go to the gate of a flight for Japan, say DTW NRT. However, you would have to trade a convenient amount for the other person, say exactly $20 or $100.
I once traded money from a friend for a house. It was based on trust. The friend paid the escrow agent and I paid them by check.
I suppose you could do that for small amounts with a friend. Maybe you could do it for excess money from a trip. For example, if you had Japanese yen, go to the gate of a flight for Japan, say DTW NRT. However, you would have to trade a convenient amount for the other person, say exactly $20 or $100.
Jan 23, 2015 | 2:33 pm
#9
Join Date: Nov 2013
Location: YEG
Programs: Aeroplan, Westjet Rewards
Posts: 329
Maybe someone can set up an app for buyers and sellers to meet up, like AirBnB or Uber. Then we can find out all the problems that can develop - like being banned from meeting up at the airport, for one.
Jan 23, 2015 | 2:41 pm
#10
Join Date: Feb 2013
Location: Miami, FL
Programs: UA 1MM, AA Plat, Marriott LT Titanium, Hyatt Glob, IHG ♢ Amb, Hilton ♢, Hertz Pres
Posts: 6,174
Private currency exchange
Don't exchange money at a bank. Just pull it from the ATM when you arrive. You'll get the best rate... and likely one where a local wouldn't beat it by enough that'd be worth the risk. the only time worth going to the private/black/blue market is in countries with absurd pegs like Argentina or Venezuela.
Jan 23, 2015 | 2:42 pm
#11
Original Poster
Join Date: Jan 2015
Posts: 30
I am thinking that if I buy 100 euros at the posted daily exchange rate, today its at 1.13$ then it would not be illegal. If the government says that 1 euro costs $1.13 then why can't I buy it from a private person. The only thing that I am not doing is paying a middle man for the service.
As long as I am not charging above the posted daily exchange rate it is not black market. Am I wrong?
As long as I am not charging above the posted daily exchange rate it is not black market. Am I wrong?
Jan 23, 2015 | 3:28 pm
#12
FlyerTalk Evangelist
Join Date: Nov 2006
Location: Bangkok or San Francisco
Programs: United 1k, Marriott Lifetime PE, Former DL Gold, Former SQ Solitaire, HH Gold
Posts: 11,889
Jan 23, 2015 | 4:16 pm
#13
Join Date: Jun 2008
Location: Northern Nevada
Programs: DL,EK
Posts: 1,653
I think I traded some Yemeni Rials this way. I had left over Rials and went to the gate in Dubai that had a flight for Yemen. I got UAE Dirhams in return and it all worked out. I think I've done it or Czech crowns too. It works well for oddball currencies.
Jan 23, 2015 | 5:11 pm
#14
Join Date: Jul 2013
Location: DAY/CMH
Programs: UA MileagePlus
Posts: 2,474
I am thinking that if I buy 100 euros at the posted daily exchange rate, today its at 1.13$ then it would not be illegal. If the government says that 1 euro costs $1.13 then why can't I buy it from a private person. The only thing that I am not doing is paying a middle man for the service.
As long as I am not charging above the posted daily exchange rate it is not black market. Am I wrong?
As long as I am not charging above the posted daily exchange rate it is not black market. Am I wrong?
Jan 23, 2015 | 5:58 pm
#15
Join Date: May 2014
Location: East Bay, CA
Programs: AA Gold, IHG Elite or something, Marriott Platinum
Posts: 32
Just a couple of years ago, I worked as a teller in a bank and people were coming in all the time wanting to trade in their foreign money. We had a $200 minimum and our fees made it undesireable on top of that. I always said I'd be happy to change the money personally at $1 for €1\1. I know that at the time as an employee of the bank it would be frowned upon but have always thought it wouldn't be an issue outside of that employment.