When is the Best Time to Exchange Currency?

Although exchanging currency itself is relatively simple, identifying the most favourable time to obtain your foreign currency is essential to avoid wasting money. Exchange rates fluctuate constantly due to a range of economic, political and seasonal factors. Whether you are travelling for a holiday or planning to transfer money abroad, the exchange rate plays a crucial role in managing your budget.

In this article, we share our best tips to help you pinpoint the right time to exchange your currency, so you can take advantage of better rates and make the most of your trip abroad.

 

Key Takeaways:

• Exchange rates fluctuate in real time based on supply and demand. It is advisable to monitor their movements and exchange your money when your currency is strongest.

• Decisions made by central banks, inflation levels and political instability can all influence exchange rates. Quieter periods tend to be more favourable for currency exchange.

• Since the Forex market is closed during weekends and bank holidays, some bureaux apply higher margins. It is generally better to exchange your money between Tuesday and Thursday.

• Online bureaux de change often offer more competitive rates and no commission fees. Comparing offers is recommended to maximise the amount you receive.

• Airport exchange counters should be avoided where possible. Exchanging your money one to three weeks before departure gives you time to benefit from better rates and choose the most suitable option.

 

To give yourself the best possible chance of securing a good deal, it is vital to monitor fluctuations in the interbank exchange rate. Used as a reference point by banks, this rate changes in real time according to supply and demand on the currency markets.

Make sure you track its movements so you can identify the moments when the rate is most favourable and receive a higher amount in your chosen currency as a result.

A number of economic and geopolitical elements can directly influence the exchange rate. These may include:

• decisions made by central banks

• inflation in your destination country

• potential geopolitical or economic crises

• elections or political instability

Periods of calm, without major announcements or shocks, often offer more stable and attractive exchange rates. By keeping up to date with the news, you can identify when exchange rates are likely to rise or fall and choose the best time to exchange your currency accordingly.

The foreign exchange market (Forex) is closed from Friday evening to Sunday evening. During this time, exchange rates are not updated in real time and some bureaux de change may take the opportunity to apply higher margins.

Bank holidays, such as Christmas Day or New Year’s Day, also tend to offer less favourable rates, and it is generally advisable to avoid exchanging currency on these dates.

Ideally, plan to exchange your money between Tuesday and Thursday, when exchange rates are usually more stable and competitive, helping you to get more for your money.

Read more: Forex: everything you need to know about the foreign exchange market

Online bureaux de change tend to offer lower exchange rates than traditional banks or physical exchange counters. The reason is simple: thanks to lower overheads, they are able to offer more competitive margins on currency exchange.

At ChangeGroup, we not only offer preferential exchange rates for online reservations, but we also remove all commission fees to help you receive a higher amount of the currency you need. Choose our commission-free exchange service to maximise your holiday budget and fully enjoy your trip, wherever you're headed.

Read more:

• Should I exchange currency online or at the airport?

Exchange rates offered by banks and bureaux de change can vary significantly from one provider to another. It is therefore essential to compare offers to give yourself the best chance of securing a better rate.

Do not forget to check for any additional fees, commissions or mark-ups, which can greatly affect the final amount you receive, even if the headline exchange rate looks good at first glance.

Good to know: by reserving your currency online with ChangeGroup, you benefit from preferential exchange rates and 0% commission. No hidden charges, so you know exactly how much you’ll get in return, making it easier to plan your trip abroad.

Whatever currency you’re looking to exchange, it is essential to do so in advance to give yourself the best chance of benefiting from a favourable rate.

Exchange counters at airports typically offer less attractive rates, as they capitalise on the urgency of last-minute travellers.

Try to exchange your currency one to three weeks before departure, giving yourself more time to compare rates and choose the most cost-effective option.

Good to know: using our online exchange bureau allows you to benefit from some of the best rates available, while also choosing the branch most convenient for you to collect your order. Select one of our bureaux de change located in the airport you’re travelling from to take advantage of our preferential online rates and pick up your money before departure. For added flexibility, you can also choose our home delivery service to receive your currency directly to your door.