Currency shenanigans
February 12, 2025 2:22 AM Subscribe
I am to pay for the accommodation on an upcoming trip and be reimbursed by my friends. The Europeans can bank transfer me, but for the Americans, might local cash be better?
I honestly can't do maths thinking, so I would appreciate some help. Google current values:
1000 yen is 6.5 USD and 70.7 SEK.
1 usd is 10.9 sek.
Does it make more sense for her to bank transfer from USA to Europe or to hand me a stack of yen that I will be spending anyhow when we meet. I realise there are some unknowns like transfer fees, exchange fees etc.
I honestly can't do maths thinking, so I would appreciate some help. Google current values:
1000 yen is 6.5 USD and 70.7 SEK.
1 usd is 10.9 sek.
Does it make more sense for her to bank transfer from USA to Europe or to hand me a stack of yen that I will be spending anyhow when we meet. I realise there are some unknowns like transfer fees, exchange fees etc.
It depends on just how much money we're talking about and what your trip entails.
I live in Europe, my number one trip buddy lives in the US.
Where it makes sense we try to split who pays for big ticket costs like hotels/flights/rental cars somewhat equally. It is never going to be entirely equal so the person who paid less then pays for incidental trip expenses like meals, experiences etc until we're even.
On trips where that did not work e.g. because my friend ended up making all bookings for joint US domestic travel when I visited her I transferred the money into her account. Where the amounts were smaller, we've also had me pay for all travel incidentals and at the end of the trip I went to an ATM and withdrew the delta and handed it to her. Considering that there are withdrawal limits and considering that people are using less and less cash that only makes sense if the amount is not too high.
posted by koahiatamadl at 3:15 AM on February 12 [1 favorite]
I live in Europe, my number one trip buddy lives in the US.
Where it makes sense we try to split who pays for big ticket costs like hotels/flights/rental cars somewhat equally. It is never going to be entirely equal so the person who paid less then pays for incidental trip expenses like meals, experiences etc until we're even.
On trips where that did not work e.g. because my friend ended up making all bookings for joint US domestic travel when I visited her I transferred the money into her account. Where the amounts were smaller, we've also had me pay for all travel incidentals and at the end of the trip I went to an ATM and withdrew the delta and handed it to her. Considering that there are withdrawal limits and considering that people are using less and less cash that only makes sense if the amount is not too high.
posted by koahiatamadl at 3:15 AM on February 12 [1 favorite]
Response by poster: It's like 300 bucks, they could take it out of an ATM in Japan if they aren't taking out of their bank before travel. The only shared expense is this accommodation. I have plenty of solutions, I'm just wondering if the one I am asking about is financially sensible or obviously ridiculous.
posted by J.R. Hartley at 3:51 AM on February 12
posted by J.R. Hartley at 3:51 AM on February 12
An international bank transfer will incur a flat fee plus possibly a % of value and/or sub-optimal exchange rate. So I'd avoid that for a small amount like that.
As one of those people who prefer to avoid cash, especially in foreign currency, I'd also prefer not to get cash. If you're indifferent, perhaps ask them if they have a preference.
posted by koahiatamadl at 4:06 AM on February 12
As one of those people who prefer to avoid cash, especially in foreign currency, I'd also prefer not to get cash. If you're indifferent, perhaps ask them if they have a preference.
posted by koahiatamadl at 4:06 AM on February 12
If I were the American in question I would probably prefer to take the 1000 yen out of the ATM and hand it over to you.
But also if you told me "transfer me Y SEK" I could do that too (bank transfer, especially internationally/cross-currency, is not something USians do often but it's not particularly difficult or costly if you use Wise). I would strongly prefer that you do the calculations for me and tell me exactly how much to pay you.
posted by mskyle at 4:08 AM on February 12
But also if you told me "transfer me Y SEK" I could do that too (bank transfer, especially internationally/cross-currency, is not something USians do often but it's not particularly difficult or costly if you use Wise). I would strongly prefer that you do the calculations for me and tell me exactly how much to pay you.
posted by mskyle at 4:08 AM on February 12
Someone traveling with a no foreign transaction fee credit card, may prefer to compensate you by purchasing things on your behalf with said credit card.
posted by oceano at 4:10 AM on February 12 [2 favorites]
posted by oceano at 4:10 AM on February 12 [2 favorites]
Best answer: On $300, any possible variation based on differential exchange rates is going to be pennies, so don't worry about it.
It comes down to convenience. Cash is easiest if you're going to spend an equivalent amount in cash while you're there. Saves you a trip to the ATM, maybe.
posted by rd45 at 4:11 AM on February 12 [1 favorite]
It comes down to convenience. Cash is easiest if you're going to spend an equivalent amount in cash while you're there. Saves you a trip to the ATM, maybe.
posted by rd45 at 4:11 AM on February 12 [1 favorite]
Best answer: If the amount is moderate (in the hundreds of dollars), Seven (aka 7-11) ATMs in Japan are known for having very good exchange rates and low fees (100-200 yen), as well as supporting withdrawals from around the world. It's sometimes possible to save marginal amounts over this if your bank has good exchange rates, but the difference is usually so little as to not be worth the trouble.
posted by etealuear_crushue at 4:52 AM on February 12
posted by etealuear_crushue at 4:52 AM on February 12
I used PayPal on our last Europe trip, and it's possible to do a person to person transfer with only a small fee.
posted by fiercekitten at 7:30 AM on February 12
posted by fiercekitten at 7:30 AM on February 12
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You’ll want to minimize transaction fees. You can agree on the exchange rate, say, the first of this year, or today’s rate… whatever you agree.
posted by at at 3:08 AM on February 12