Travelers,
In my last post, I explained how you could easily calculate how many Euros you should expect to pay if your bill from a restaurant is in CHF (Swiss Francs).
Today, I will tell you how you can quickly determine the amount of change you should receive in CHF after you have paid in Euros or Dollars -- afterall, most establishments are going to give you change in the currency they use!
You wouldn't expect a store in New York City to give you change in Euros, just because you paid them in Euros, right? Truth be told, having lived in New York City myself, I doubt that they'd take your Euro bill in NYC - but, that's besides the point. In Europe, they've accepted the fact that we are in the 21st century, and so, they are happy to take cold, hard cash - regardless of currency.
In Switzerland the common currency is the Switzerland Franc (CHF). In the following example, I'll use the conversion rates as of 16 September 2007 which are: 1 EUR = 1.64948 CHF and 1 USD = 1.19105 CHF.
OK, so here's an example, and I'll give the scenario using two different currencies, Dollars and Euros:
Let's suppose you just had an ice cream at your local Movenpick and your bill comes to CHF 6.
Your wallet has several 50 Euro bills and a 100 US Dollar bill ... What to do?
Well, from my article posted on 14 September 2007, "Conversion of Currency", you already know that you should pay ~4 Euros.
(Remember: divide by 2 and add 10% --- dividing CHF6 by two = 3; and 10% of CHF 6 = 0.6; finally the sum of 3 and 0.6 = Euro 3.6. Adding tax, then rounding, and VOILA' - you owe Euro 4).
Another tip: Euros are preferred over Dollars, since the Euro is stronger than the US Dollar.
But, the new lesson is this: The person taking your money will give you change in CHF, NOT EUROS! How much should you expect back?
As a note of caution: most taxi cab drivers and some individuals that run businesses are NOT honest people, and THEY WILL take advantage of your Naivete'. This is human nature anywhere on the planet and is not meant to insinuate anything negative about the European way of life ... just a word to the wise traveler in ANY country.
But don't get fooled, use your brain instead!
Since you know that the exchange rate is 1 EUR = 1.64948 CHF, you can quickly determine how much to expect back if you paid in Euros.
Remember, your bill here is CHF 6, which we saw above was Euro 4. You are paying with a 50 Euro bill and you'll be getting your change in CHF.
To determine the CHF you will get back, there is no mnemonic or rule to remember - it is simple math.
Your change due back is as follows: 1 EUR = 1.64948 CHF, and you owe 4 Euros, 50-4 = 46 Euros due back, and finally 46 X 1.64948 = CHF 75.87 is your change.
Don't expect exactly CHF 75.87, the person giving you change may be doing the math in their head and thus will be rounding.
In case you had handed the 100 US Dollar bill instead:
Since you already know that the exchange rate is 1 USD = 1.19105 CHF, you can now quickly determine how much to expect back if you paid in US Dollars. Remember, your bill here is CHF 6, which is $5.03 dollars.
You are paying with a 100 Dollar bill and you'll be getting your change in CHF.
Again, to determine the CHF you will get back, there is no mnemonic or rule to remember - it is simple math.
Your change due back is as follows: 1 USD = 1.19105 CHF, and you owe 5 Dollars, 100-5 = 95 US Dollars due back, and finally 95 X 1.19105 = CHF 113.15 is your change.
Again, don't expect exactly CHF 113.15, the person giving you change may be doing the math in their head and will probably round down to be safe.
In the second illustration (Dollars) you didn't get as much change as the first example in Euros, simply because the US Dollar is not as strong as the Euro. In other words, the change on 50 US Dollars = CHF 53.58; which is less than the change of CHF 75.87 due back on a 50 Euro bill... and this is a reflection of the strength of the Euro.
The synopsis: Know the exchange rates for the currencies you are using ... and know how to apply them! Alternatively, change your money to the currency you will need and do this in the USA before you leave. Look for my article on the topic of "When and Where to exchange your money to get the best deal" coming soon ... there are many fees, percentages and other pitfalls you must look out for in deciding when and where to exchange your money.
Again, there are many Currency converters on the internet. My favorite online currency converter is XE - it's easy to remember and very easy to use.
Keep in mind that rates change daily, so the above examples that I gave are valid as of 16 September 2007 and serve simply to illustrate the conversion between CHF and EUR or USD currencies.
Your Traveling fiG,
- Professor Gary
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Gary Plourde is an independent author. He writes about Traveling, Sailing, Inventions and the Patenting process. Patent your new idea and explore an opportunity to generate revenue for your business, scholarship, study abroad, or sabbatical.Labels: cheap travel, currency conversion, International travel, student travel. budget travel, travel |
