Know the Spread of money when changing money for your trip.

 I am no currency trader. I am just a regular traveller who flies to numerous Asian countries for work in the past and less so nowadays. Let me give you a tip on how to save money when you travel.

If you need to change money, do go to the money changers outside of town area. They have lower operating expenses, and hence can offer you better 'rates'. When I say 'rates', I mean when you change your Singapore dollars to a foreign currency, the 'spread' or the different exchange rates the money changer gives you is smaller than if you were to change at the airport. That is the most expensive and worst place to change money, aside from the banks.

Case in point, let me show you my recent trip to China. I changed money at the last minute at the Prosegur Exchange at the T1 Departure Lounge at Changi on the very day I was to depart to Guangzhou for a business trip. Yes, the airport does offer convenience, because, if you are a busy (or disorganised) person like me (sometimes), you will say, "heck this, its only a few hundred .bucks, how much can I lose anyway ?"

  

            I bought RMB 3100 and paid S$ 593.60 on 4th March '25 

So on the day of my trip, I changed or bought  S$ 593.60 into RMB 3100 for my spending in Guangzhou and Dongguan

The exchange rate, which I paid was S$ 1 = 5.22 

(the interbank rates are closer to S$ 1 = RMB 5.4), so the changer pays a low rate for my Singapore dollar. 

I returned some 5 days later  to Singapore, amazingly I kept my RMB 3100 intact, having spent 0 on the trip (I was taken good care by my Chinese hosts). The next day, I went to the money changer and sold my RMB 3100, this time the money changer sells  me Singapore dollar. I received a sum of S$ 564.20  or S$ 1 = RMB 5.48 or he sells me a high rate for the Singapore dollar.

I sold RMB 3100 on 10 th March back for S$ 564.20 

Hence he makes on the spread, or the difference between S$ 593.60 and S$ 564.20. This translates to close to S$ 30 or S$ 29.60. Thats roughly S$ 5 for every S$ changed to RMB. 

In essence he makes $29.60 divided by $593.60 or almost 5% from changing money for me.

Almost everyone who travels overseas knows it ; so the 'best way' to lose as least as possible is to buy and sell from a money changer who will normally have a smaller 'spread' compared to the airports.

There might be smaller spreads in foreign airports or foreign countries money changers because, their overheads are far lower.

Occasionally from time to time, I will post further money saving tips, my readers and followers. 

Carpe Diem.