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Foreign Exchange Money Tips

Posted March 11, 2014 by admin with No Comments in Business Economy

Foreign Exchange
American travelers abroad this winter will have to use greater judgment than heretofore in the exchanging and spending of money, for the fall of the dollar has been to the disadvantage of the tourist. In the past few seasons, the American traveler has reaped the benefit derived from the exchange of his dollars for the depreciated currencies in several countries. But the tables have been turned in a number of countries, and the American traveler accordingly finds himself paying considerably more than he did a year or two ago.

This increase holds in Great Britain, France, Germany, Italy, Belgium, Holland and Switzerland. The exchange rate of a number of currencies, however, is still below par, thus favoring the American tourist, even tho at a lesser degree than heretofore. This is true for Spain, Japan, Mexico and South American countries.

Travelers should exercise care in making the exchange from dollars into foreign currencies. This should be done whenever possible at banks and offices of reliable travel agencies and not at hotels or shops unless the official rate of the day is allowed in the exchange.

Tourists should carry their funds in travelers’ checks, if the amount is relatively small, and in letters of credit, if large. These may be purchased from banks, large travel agencies, and steamship companies. Travelers’ checks come in check form, in denominations of $10, $20, $50 or $100, and are signed by the buyer at the time of purchase and countersigned when cashed. They are protected against fraud.

The currencies of most European and some other nations with the value at par in United States money and recent rates of exchange, are given in the following table. Readers are warned that rates of exchange have been fluctuating greatly and the table is given only to show the rate of the first of December.

The following currencies are quoted in dollars and cents. (Par values are indicated in parentheses) :
Great Britain ($4.860 a sovereign) $5.17
Australia ($4.86% a sovereign) 4.13
New Zealand ($4.860 a sovereign) 4.16
South Africa ($4.860 a sovereign) 5.20

The following currencies are quoted in cents and decimals of a cent:
France (3.9179c. a franc) 6.14
Germany (23.82c. a mark) 37.55
Italy (5.263c. a lira) 8.24
Belgium (13.904c. a belga) 21.85
Austria (14.0713c. a schilling) 17.75
Holland (40.1959c. a florin) 63.15
Switzerland (19.295c. a franc) 30.36
Greece (1.2977c. a drachma) .91
Portugal (4.4241c. an escudo) 4.80
Spain (19.295c. a peseta) 12.86
China (cents for silver dollars)
Shanghai dollars 34.06
Hongkong dollars 37.60
Japan (49.85c. a yen) 30.94
India (36.50c. a rupee) 38.94
Java (40.20c. a florin) 63.50
Philippine Islands (50c. a silver peso) 49.81
Straits Settlements (56.78c. a dollar) 61.00
Argentina (52.44c, per paper peso) 34.00
Brazil (11.96c. a paper milreis) 9.00
Chile (12.166c. a gold peso) 10.00
Colombia (97.33c. a gold Peso) 68.50
Peru (28 cents a sol) 23.25
Uruguay ($1.0342 a gold peso) 75.00
Mexico (49.846c. a silver dollar) 27.82
Canada (100 cents on Can, dollar) 101.56

Day by day rates will be found in newspapers and should be consulted during the trip each time money is exchanged.

Source: Literary Digest, December 16 1933

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