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Aneth Ng-Lim, Paying It Forward

Aneth Ng-Lim

<p>Back in September, we woke up to a stronger peso which meant overseas travel plans became more attractive and affordable.  The downward trend actually started in late July. During August, the US dollar against the peso was playing around the P56 range, and then September saw exchange rates improve even more, moving within P55 and P56.</p><p>If you made travel bookings in September, and are now seeing the peso weaken to nearly P58, you may be worried about higher costs.  If you only made reservations, and payment will happen closer to your travel dates, yes you could be paying more.  </p><p>Historically, the peso is stronger in the final quarter of the year due to remittance inflows. But just in case that does not happen this year, or does not happen soon enough for you, here are ways you can save on foreign exchange rates and fees when leaving the country.</p><div><strong>#1 Avoid exchanging to USD if you are not going to the United States</strong></div><p>I was surprised to learn that a friend saved up in US dollars, and will now exchange these to Japanese Yen for her Tokyo trip.  Moving between more than two currencies will cost you.  The best option is to change your local currency to the currency of the country where you are going, which means from pesos to pounds if the United Kingdom, or pesos to euros if headed to France.</p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/gIfz61a4o0U?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><div><strong>#2 Track and compare exchange rates</strong></div><p>If your trip is planned for November or December, set a foreign exchange rate that is reasonable for you, and track its movement.  Don’t buy now when the peso is weaker and you will get less with conversion.  You can ask the bank or the money changer how to conveniently track their rates daily.  Some post on their Facebook page, others have group chats you can join, or you can go to their website.  </p><div><strong>#3 Airport money changers are a No-No</strong></div><p>Because it is convenient to exchange money at the airport, expect them to give you less for your money.  You are paying for that convenience, and sometimes (or often) paying too much.  Make a quick online check to see just how painfully low they are offering you if you want real-time confirmation.</p><div><strong>#4 Choose a credit card with no or low foreign transaction fees</strong></div><p>For quick trips, I prefer to use credit cards to pay for my expenses.  However, the credit card fees for foreign currency transactions are becoming higher and higher.  So before you take off, check which of your credit cards have zero or low foreign transaction fees.  This is a new thing that I discovered when my foreign subscription charges started showing a higher amount on my statement.  If your credit cards charge this fee, consider applying for one that specifically states it does not charge foreign transaction fees, or at least one that charges a lower fee.</p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/rC3A87-1UWc?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><div><strong>#5 Watch those dual-currency credit cards</strong></div><p>I made the mistake of paying with a dual currency card one time I was in Singapore.  So my Singapore dollar purchase was converted to US dollars, which meant I had to exchange my pesos for US dollars when I got home to be able to pay my dual currency card.  When I did a simple math of what the Singapore dollar purchase would have cost me if converted straight to pesos, without the credit card conversion to US dollars, that would have been enough for a nice meal abroad.</p><div><strong>#6 Always pay in local currency</strong></div><p>If you are using your credit card, always say no to dynamic currency conversion.  Choose to pay in the local currency of the country you are visiting.  Maybe you are in Hong Kong and just bought a new pair of shoes.  The cashier may ask you to choose between paying in pesos or in Hong Kong dollars.  Do not pay in pesos, because you will be charged fees plus a foreign currency rate that is almost always higher.  Instead, pay in Hong Kong dollars.  If you want to check later, take a screenshot of the cashier&#x27;s offer, and then look at your credit card statement.  Compare the peso conversion, and you can thank me for your savings.</p><div><strong>#7  Consider a travel debit card</strong></div><p>I just discovered the GCash card and have been using it for my recent travels, in London and in Singapore.  The foreign currency conversion is either the same as the bank’s or even better.  With your GCash account, you can request for a physical debit card, and tap away with it when you travel. You can keep track of the conversion for every tap, and also your available (depleting) balance, conveniently from the app.  It’s also a great budget tool – just load onto GCash what you are willing and can afford to spend.</p>

<p>If you made travel bookings in September, and are now seeing the peso weaken to nearly P58, you may be worried about higher costs.</p>

If you made travel bookings in September, and are now seeing the peso weaken to nearly P58, you may be worried about higher costs.

What does a weaker peso mean for your travel plans abroad?

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What does a weaker peso mean for your travel plans abroad?

Aneth Ng-Lim

Published Oct 16, 2024 02:52 PM PHT

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Aneth Ng-Lim

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