Exchange rates and saving money

When I was there in April, I did as I always do - exchanged a bunch of money, with the expectation that I'll save a bit of cash using the local currency. However, it sure didn't seem that way and the more I think about it, I think that ship has sailed.

More and more menus are now in USD, and the conversions from USD to JMD are not favorable. It seems to me it used to go the other way - menus in JMD, and the conversion to USD is where you got screwed, hence the need to have local currency - but now it appears to be happening the other way.

Have meals in general also gotten more expensive when I wasn't paying attention? Sure, there's box lunches and patties on the beach and other bargains, but I found myself spending more on restaurant meals this last reach than ever before.

I carry both, do the math and pay with whatever provides the best value. My experience was polar opposite and I did quite well using JMD during my April trip. The US dollar does have it's place, however the local currency is the way to go at most places. I will give a shout out to Hi-Lo for offering a competitive credit card rate. I will also give a shout out to Hi-Lo for providing the most consistent customer service I have experienced in Negril.

Yes food prices up at some higher end establishments .............. but that is the same at home also. However MOST of the time it was a better deal to use $JA then $US when we were there this April. Did not do a converse calculation at every stop so can not say for sure about every location.

Here is my money changing / money saving ideas from an earlier post http://negril.com/forum/showthread.p...What-are-yours

Find a way to cheaply convert your US dollars into Jamaican dollars and pay for most things in Jamaican dollars. ATM's charge a service charge which can vary but $5 US or more per transaction is not unheard of. Your bank may charge a ATM fee AND a foreign transaction fee which can run from zero to 15%. The exchange rate you get at a restaurant or bar will always be less then a Bank or Cambio. For example, beers on the beach can cost $150 to $400 Jamaican But you only have US dollars? They will charge you $1.50 to $4.00US. Might not seem like much, but with an exchange rate of $115 JA to $1US you just paid $230JA for a $200JA beer. Total those savings and it is a easy 15% - 25% savings just in simple currency management.

If you ask around there are plenty of good, honest people or establishments who will change money at a very good rate. If you have a favorite driver they will know someone who can help you with $$$. If they don't offer a competitive rate walk away and find another. If you are not comfortable with the situation just walk away. This not only saves some time and the hassle of going to town but it keeps your Debit card safe from hacking issues. That issue is discussed at length in another thread http://negril.com/forum/showthread.p...ly-upon-return!!

Our personal routine is to change enough money on the ride from the airport to last us 4-5 days. Then we know people who supply that same service without having to go to town. No taxi ride, no ATM fees, no hassle from people hanging around the ATMs, no taxi ride back, no need to leave the beach and just as good a rate as at the Cambios.

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Originally Posted by Captain Oil

For example, beers on the beach can cost $150 to $400 Jamaican But you only have US dollars? They will charge you $1.50 to $4.00US. Might not seem like much, but with an exchange rate of $115 JA to $1US you just paid $230JA for a $200JA beer. Total those savings and it is a easy 15% - 25% savings just in simple currency management.

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Great point. On the opposite side, I found that if smaller restaurants or vendors price things in USD, they will sometimes accept an even conversion to JA currency. For example, if the bill comes to $10 USD, I will ask if they will accept $1000JA. Typically, they will say yes, which works out in my favor. Of course, larger places will pull out a calculator or use a POS system to convert your bill to JA, at their own exchange rate.

i agree that in the past it was best to use J. lately it appears that credit card is a good way to go. also i will ask what they use for exchange rate is at their place and sometimes you get less for the J than the typical conversion so i use American

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Originally Posted by Mike_D

Great point. On the opposite side, I found that if smaller restaurants or vendors price things in USD, they will sometimes accept an even conversion to JA currency. For example, if the bill comes to $10 USD, I will ask if they will accept $1000JA. Typically, they will say yes, which works out in my favor. Of course, larger places will pull out a calculator or use a POS system to convert your bill to JA, at their own exchange rate.

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Maybe it is only me but I find "nickle and dime-ing" a small vendor or restaurant who already has an enormous task of staying open a buck or two here and there not how I like to roll. I pay for everything in Jamaican Dollars just like I use US dollars here in Florida and not Euros. I don't bargain for meals. If I don't like the price quoted, I don't buy the meal. If I don't see a price, I ask first.

These small vendors and restaurants only price some items in US dollars to attract the tourist who doesn't want to deal with Jamaican currency. That $10 bill also should have a GCT tax component so giving them $1000J instead of @ $1250J what they are asking puts less than $800J in their pocket.

Change your money into Jamaican and don't be so lazy as to not learn the local currency, customs and runnings. After all, being a "likkle" Jamaican on your vacation is part of the experience.

Not an indictment of you Mike_D as I know from reading you do things right. I am just pointing out that a few pennies or dollars mean a lot more to Jamaican vendors than they do to me. I am not a tight wad but I am also not foolish with my money either.

Peace and Guidance

You might take a look at this thread. My experience was that using the ATM was slightly cheaper. Around $10. US difference for my entire trip, though, so not a big deal either way.

http://negril.com/forum/showthread.php/15716-ATM-Fees

People talk all the time about exchange rates, but the fact is that you are never going to do better than the interbank rate plus a modest fee. Whether the fee is reflected in an exchange rate with a bit of a spread from the interbank rate (as cambios all do) or whether you see the fee as a direct charge, it's in there somewhere.

Personally, I avoid using a credit card when I travel because I got tired of the reissue that occurs when I get home and someone is still trying to make charges to my account.

And I also am uncomfortable asking for a discount when the financial balance is so much in my favor. But we've been around and around on that topic many times.

always pay in Jamaican dollars.....nuthin more to add

todays exchange rate $122.50 at HiLo Fox Trader

Cool Runnings, Marko

And the interbank rate as of a few minutes ago was 126.623. So there you have it.

I always carry both US$ and J$. If the prices are posted in US I pay US. If the prices are listed in J I pay J. Simple, easy, and no conversion.

took a bunch of money off a buddy in a golf match about a month ago. He owed me 50 bucks. Only had 40. asked if he could pay me in 10 GBP. I said sure. He asked "Seriously?" I said "Yup. can exchange for like 1500 JA my next trip"

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Originally Posted by wrtiii

Personally, I avoid using a credit card when I travel because I got tired of the reissue that occurs when I get home and someone is still trying to make charges to my account.

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Very easy to eliminate this issue completely. A simple call to your credit card BEFORE you leave on your trip. Tell them what days you will be in a foreign location and to not accept any foreign charges after your date of departure.

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Originally Posted by Captain Oil

Very easy to eliminate this issue completely. A simple call to your credit card BEFORE you leave on your trip. Tell them what days you will be in a foreign location and to not accept any foreign charges after you date of departure.

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Yep

Well said Accompong. What? You visit Jamaica, you spend a grand on airfare, some $ on transport, $ on a nice room, and you want to stiff a restaurateur or a vendor. Its the "I got it over on him" mentality...very immature in my opinion.

Jeez, do some research, start with the exchange rate ( 1US$ = 126JA$). Get some Monopoly money, pretend its Jamaican $. Do some transactions with your partner. Pretty soon you'll do rough conversions in your head. Heck, this isn't rocket surgery!

When I visit, I pay attention to enjoying the sun, sand, food, and the people. Oh, and the rum. Not fluctuations in the currency conversion.

Well said by you too...we're there not to worry about a ting! Put it in perspective. We go back and forth with USD an JAs. Whatever the menu is printed in....and then add a very generous tip. People work hard. I'm not rich but like to share with those not as fortunate as me.

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Originally Posted by Papa Georgie

Well said Accompong. What? You visit Jamaica, you spend a grand on airfare, some $ on transport, $ on a nice room, and you want to stiff a restaurateur or a vendor. Its the "I got it over on him" mentality...very immature in my opinion.

Jeez, do some research, start with the exchange rate ( 1US$ = 126JA$). Get some Monopoly money, pretend its Jamaican $. Do some transactions with your partner. Pretty soon you'll do rough conversions in your head. Heck, this isn't rocket surgery!

When I visit, I pay attention to enjoying the sun, sand, food, and the people. Oh, and the rum. Not fluctuations in the currency conversion.

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I'm with you 100%. Accompong is spot on as usual.

Being schizophrenic helps a lot

The Jamaican and the American in my head have many a discussion about money

Cap!

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Originally Posted by wrtiii

And the interbank rate as of a few minutes ago was 126.623. So there you have it.

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the interbank rate is just that: between banks. Are you sure your credit card actually gives you the interbank rate?

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Originally Posted by Captain Oil

Very easy to eliminate this issue completely. A simple call to your credit card BEFORE you leave on your trip. Tell them what days you will be in a foreign location and to not accept any foreign charges after your date of departure.

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My CC issuer is Chase and this year they told me they would most likely block any transactions I attempted while in Jamaica. In past years they did put a note on my account to block transactions after the date I advised them I would return.

Homebrewer, no, I said that when I use the ATM I get the interbank rate and pay an additional flat fee, so as long as I withdraw the daily maximum I do better at an ATM than I would exchanging the same amount of US $ at a cambio. My credit cards charge an international transaction fee and don't state that they exchange at the interbank rate. So I don't use them when I travel foreign except in an emergency.

Oh, and telling your bank not to accept charges outside your travel dates works up to a point, but if someone is trying to run charges against your card your bank will still cancel that number and issue you a new card. This is a PITA that I prefer to avoid.

Papa Georgie - I agree with you completely. When you visit another country why would you expect not to use their currency? When visitors come here (Canada) or the USA, they have to use our dollars. Whether or not the rate is based on the US dollar shouldn't make any difference. Try to use the dollar in, say, England and they would tell you to get it exchanged.

I always use Ja$ when I am there. After a day or so it comes naturally - no problems. Oh, and I rarely convert - the price is the price.

Always paid in US dollars and always will. 16 trips and have never used a credit card in Jamaica and never will unless it is an emergency.

If I pay little more by paying US dollars, oh well. I can afford it. I take lots of small bills to avoid JA dollars as change. Many Jamaicans tell me they prefer US dollars.

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Originally Posted by Homebrewer

My CC issuer is Chase and this year they told me they would most likely block any transactions I attempted while in Jamaica. In past years they did put a note on my account to block transactions after the date I advised them I would return.

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Just used a Chase CC this April with no issues. We set the dates of travel a month before we left.

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Originally Posted by gregandkelly63

Always paid in US dollars and always will. 16 trips and have never used a credit card in Jamaica and never will unless it is an emergency.

If I pay little more by paying US dollars, oh well. I can afford it. I take lots of small bills to avoid JA dollars as change. Many Jamaicans tell me they prefer US dollars.

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There was a time, many years ago that Jamaicans preferred US dollars because they were unable to get them unless they had a bank account that allowed it. Today, they can get foreign currency just as easily as Jamaican Dollars.

I think the Jamaicans who tell you they "prefer" US dollars do so because you give them more on each transaction. They tell you "$100 US" on a $10,000J transaction and then they exchange it for $12,000 or more.

I think the "Jamaican Experience" extends to learning about the people and culture and the way they live each day and that includes their money. It is not so difficult to use Jamaican Dollars and chat a word of patwa here and there. It makes for a better experience in my opinion. No harm, no fowl if you want to continue they way you do it though.

Peace and Guidance

mi think wi won't be up to $126 till next Spring.....or maybe next Summer.....
you can't go by those online rates here on the ground in Negril......
the rate right now is $122.50US at the Fox Trader Cambio by HiLo.......

Cool Runnings, Marko

XE.com rate is 126.50 J to $1 US

I use US $'s, exchange same at Cammbio by the roundabout, and ATM withdrawals. I find a mix offers me the flexibility to pay my bill and show proper respect.

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Originally Posted by Captain Oil

Very easy to eliminate this issue completely. A simple call to your credit card BEFORE you leave on your trip. Tell them what days you will be in a foreign location and to not accept any foreign charges after your date of departure.

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No, really, that doesn't work. If someone is trying to run charges against your card using your card number, the company will terminate that number and reissue. They know it's a fraudulent transaction, they block it, they still cancel and reissue. Had this happen this spring. I absolutely always call and tell the card company my dates, and I only take one card with me when I travel, and it's one I don't use except when I'm traveling. And I still end up with the security dept. calling me to tell me that they think there are fraudulent transactions being entered and they're reissuing.