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 One of the most common nuisances vacationers face
overseas is cheating at the money changers. Though it isn’t as
unpleasant as being pick-pocketed or robbed, losing your money to an
unscrupulous dealer can seriously spoil your day and, if you lose
enough money, cut your vacation short.
Safe places to
change your money
Almost every tourist destination has its fair share of unscrupulous
money changers, but more reports seem to come from China, most parts
of the former Soviet Union, Eastern Europe and Latin America. Bali is also infamous for
the antics of its money changers, such that warning notices are put
up on most travel advisories. Almost all of the reports from these
countries have concerned shady, sidewalk money changers.
The best way to avoid this possibility is to know where to go to
change your money.
In most cities, there are many places where you can make the
exchange: banks, authorised foreign exchange bureaus, hotels, private
authorised money changers, unauthorised money changers (i.e., street
dealers).
The safest places to change your money are the banks and authorised
foreign exchange bureaus. Such institutions generally give lower
rates than you can find outside, but they don’t attempt to cheat
you. Hotels are also usually safe, though their rates still aren’t
as good as what you may find at a private money changer’s.
Most travellers choose conduct business with private money changers
as they generally give the best rates. As with everything else, most
are honest, but the few that aren’t can spoil a vacation. Don’t be
afraid to ask other travellers or locals for the best places to
change money. The general guideline is that if you see the locals
using the exchange, or if someone you know has changed money there
without any problems, it should be okay. Some exchanges charge a
commission, but not all. Usually, a place that doesn't charge a
commission offers a lower rate.
The most dubious money changers, and the ones almost guaranteed to
try and rip you off, are the unauthorised money changers. These
characters can take many forms, from the ‘fly-by-night’ operators
who set up a desk at the front of their shop to the street walking
dealers. If at all possible, chose a money changer who operates out
of a shop, preferably right up front — chances are he’s a bit more
reliable, as he knows you’ll at least have an address to report if
any funny business takes place.
Some tricks a shady money changer might use
There are any number of tricks the money changer can use to cheat an
unsuspecting traveller, so don't expect even the most exhaustive
travel advisory to tell you all the scams. Some exchanges will use a
rigged calculator,
which will show slightly less than the correct amount. The
difference may not seem like much, but when you consider how many
transactions the dealer must do over a year, that little difference
piles up to a tidy sum of money.
The crooked money changers are also master of sleight of hand
tricks. The most common trick is for the dealer to count the money
first, and when the victim begins to check the cash, try to distract
them by chatting or joking around, or by grabbing back the money and
‘counting for them’. During the counting process, some of the larger
notes either get slipped into a pocket or drawer, or a smaller note
is substituted.
Another popular trick is to cleverly fold the note,
covering the numbers so that a 1 note can, at a quick glance, look
like 10, or even 100. This is particularly easy with USD, where all
the notes are the same colour and general design. Some exchanges
will also try to give old notes, which are no longer recognized by
the banks.
There are also ‘black market’ operators, street dealers who change
your money on the sidewalk. Unless you have a trusted local to point
out an honest side-walk dealer however, its still safer to change
money elsewhere. An exception is in China, where in cities such as
Shanghai and Beijing, most of the locals go to side-walk money
changers. In recent years, though, as more foreign money has rushed
in China, the money peddlers have been finding it harder to do
business and many have moved on, leaving tourists to trudge to the
bank to change their moneys.
With most such money changers though, it is almost inevitable that
such characters are out to cheat you. They are depending on your
greed to make you overlook the risks of doing business with them,
and if someone offers a rate far above the official exchange rate,
it probably means you’ve been selected as the next target. They
don’t profit by virtue of black market economics (if there is a
black market at all),
but by cleverly stealing from the unsuspecting visitor.
The usual trick is to short-change you, and there are an almost
endless variety of ploys and sleight-of-hand tricks used to do so.
In most cases, you will at least get some money back (minus a
significant amount), but some ploys leave you completely
empty-handed. For example, just before the dealer gives you the cash, someone
yell ‘police!’, or a ‘drunk’ starts hassling you and before you know it, the friendly money
changer has run off with all your money.
Foiling the
crooked money changer
The simplest way to foil these tactics is to:
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Know the current exchange rates
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Calculate the exchange yourself
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Insist on picking up and counting the money
yourself before accepting the transaction.
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Always have the money you want to change separate
and handy.
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Never show your wallet and certainly not your
money pouch when changing money on the black market.
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Change well-known hard currency, such as USD, the
Australian dollar, Euros, the Yen and Baht. The more obscure the
currency is, the less likely the money changer will know the actual
rate. They may also not be willing to offer a fair rate as it may be
more difficult for them to reconvert the notes.
Most importantly of all,
don’t let it spoil your
vacation. If you do get burnt at the money changers, treat it as a
valuable lesson, and remind yourself not to make the same mistake
again!
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