Don’t exchange money at the airport

One US dollar is now worth around Rs 46, almost Rs 4 more than where it was just 50 days ago. So, if you are travelling abroad and want to purchase say $500, you could end up paying Rs 2,000 more.
However, the rate at which you get a dollar would also depend on who you purchase it from. Moneychangers, banks, travel agents, hotels or the airport kiosks all offer foreign currencies at different rates.
The rates offered at most airports and hotels are high. When the market rate for dollar was Rs 45.77, a bank was selling the dollar for Rs 46.6, the airport moneychanger was selling it at Rs 48.90 and the hotel exchanged it for Rs 48.97.
Why does a moneychanger whose branch in the city offers a lower rate ask for a higher one at the airport? Moneychangers say there is a higher cost involved in selling and buying at the airport.
An official at a moneychanger said, over and above the tax, they need to pay the airport authorities Rs 2.50 for every dollar sold. Also, the rent for a kiosk at the airport works out to Rs 3-4 lakh, so they are forced to charge a higher margin to cover that cost.
Moneychangers also exploit the fact that people would be willing to pay a stiffer charge for major foreign currencies, such as the dollar and the euro, at the airport since that is the last resort and no one will exchange Indian rupees once in a foreign land, the official conceded. Clearly, then, the airport is not the best place to buy foreign currency and an exchange is based done with banks and travel agents.
23/09/08 Khyati Dharamsi/DNA MONEY/Sify

To Read the News in full at Source, Click the Headline

Categories: Airports Sep 2008