Exchanging Us Money

[softail]

The wife and I are going to be in the RP on Feb 9, staying untill Mar 2. I plan to use my debit card for getting money however I am taking some US dollars as a backup plan in case somehow something happens to my card or whatever. In the past I have always taken crisp $100 bills and it has worked out great. This time I havn't been able to get any and instead I got crip new $50's. The question is, will the money changers accept the $50's as readly as the $100's? Seems I heard somewhere that denominations other than $100's are tougher to exchange.Doug

Edited February 1, 2012 by softail

[JJReyes]

Commercial banks and money changers will accept smaller denominations, but sometimes at a less favorable rate. I think you are okay up to $20 bills. The reason is the banknotes have to be physically transported to clearinghouses. For US currency, it's to a US Federal Reserve Bank clearinghouse.Commercial banks and money changers offer a slightly better exchange rate for travelers checks. The reason is each check has a serial number. Once duly noted by the local clearinghouse (debit/credit) the travelers checks can be destroyed. They are designed for one time use only because of the two signature requirement. Banks no longer charge a 1% fee if you are a customer. The difference is small, maybe 25 centavous. But if you exchange $1,000, that's Php 250, which can pay the cost of a meal. Since Hawaii is a popular international visitor destination, I also arrange with my bank to purchase Japanese Yen, Canadian Dollar and British Sterling prior to any trip. The exchange rates are always better than bringing US currency. The bank does not have to physically transport the currency back to its country of origin.Unfortunately, you can't do with Philippine currency. The banks in the United States won't exchange Philippine banknotes. Besides, the Central Bank of the Philippines limits the import and export to Php 10,000. By the way, you are permitted to take overseas and return with more than $10,000 in US currency or equivalent in gold, silver, etc. provided you make a prior declaration to US Customs.

Edited February 1, 2012 by JJR

[Dave Hounddriver]

That was a very clear and precise answer from JJR, I just want to add a personal observation. I find the 'grey market' exchanges will take the smaller bills at a lesser rate but its my opinion that the only reason they give a lesser rate is because they can get away with it. I have tried taking bills of less than $100 (Canadian or US by the way) to different exchange places and get the same reduction at each one. . . but they have always taken them from me.

[Jake]

Please be careful handling brand new crisp paper money of any amount. Many times theystick together, thinking you handed over one bill but gave the money vendor an extra one.I purposely crumble all the new ones to produce wrinkles.Jake

[Bruce]

2 things.....1. get a second ATM card for the wife in case yours is lost or damaged. CALL YOUR BANK and tell them to note the account you will be using the card in the Philippines.2. about the money changers..... I have used them In manila and Samar and Cebu. In Cebu it was in a mall. But in Manila and Samar they were free standing business. All muslim owned, and actually pay a better rate for the conversation than the mall or bank offices... I have no proof, but I always wonders about money and the taliban and the money changers in Phils....

[JJReyes]

Additional Comments:Worst exchange rates are banks and money changers at international airports. Another are hotels. Both locations consider you as a captive market. If you need local currency until commercial banks open, exchange a limited amount.The pros and cons about crisp new bills. Jake noted the problem of sticking. The advantage is they are "clean" in a literal sense. Drug dealers handling currency sometimes contaminate them with minute traces of cocaine. Some user roll $100 bills to sniff the stuff. Customs dogs are not sniffing at your butt. It's your wallet. As a precaution, I wipe bills with a damp cloth prior to travel.The Philippines has a jobs creation policy for Muslims. This includes concessions such as lower fees and surety bonds for money changers. This could account for their offering better exchange rates. Until recently, they even turned a blind eye on merchandise smuggling activities by Muslims.

[Bruce]

Additional Comments:Worst exchange rates are banks and money changers at international airports. Another are hotels. Both locations consider you as a captive market. If you need local currency until commercial banks open, exchange a limited amount.The pros and cons about crisp new bills. Jake noted the problem of sticking. The advantage is they are "clean" in a literal sense. Drug dealers handling currency sometimes contaminate them with minute traces of cocaine. Some user roll $100 bills to sniff the stuff. Customs dogs are not sniffing at your butt. It's your wallet. As a precaution, I wipe bills with a damp cloth prior to travel.The Philippines has a jobs creation policy for Muslims. This includes concessions such as lower fees and surety bonds for money changers. This could account for their offering better exchange rates. Until recently, they even turned a blind eye on merchandise smuggling activities by Muslims.

WOW! No wonder why muslims are always expecting 'concessions' from non muslims..... As long as they are given special treatment, at the expense of others, they will demand it and then there is no turning back.

[Jollygoodfellow]

QuestionCant the $100 bills be ordered at your bank for you to collect ?

[Dave Hounddriver]

Cant the $100 bills be ordered at your bank for you to collect ?

In Cebu, at many banks, people with US$ accounts can withdraw their money in US$100 bills.

[Mike S]

You are right Dave ...... I do it every month and they are all new crisp $100 bills ..... haven't found a crumpled one yet ....... course the could be ironing them ......... :thumbsup: