Best way to buy dollars

I will be travelling to Newyork in the next few months & intend to buy a piece of jewellery,it may cost $4k to $5k,what is the most economical way to go about this? Should i just go to my local bank now & order the dollars as the euro is currently strong against the dollar?I dont know the exact price of the item i will be purchasing,any thoughts appreciated.

Hi,

You are right the rate is close to recent highs 1.50, currently 1.4670 interbank

(interbank rates are the rates that banks exchange with each other - you will be given by the bank a certain percentage off the current interbank rate)

you have a couple of options to you.

a) one being using a currency specialist to exchange your euros into dollars
the advantages of using one would be :
1)you are likely to save around 1.5% compared to using a bank, as banks normally offer a very poor rate of exchange.
2) good brokers should look to get you the best rate of exchange within your time frame i.e you tell them you need them before December for example and they will give you a call when the gets to a realistic optimum rate

b) use a provider that you can buy forward. they work by you buy the dollars now (pay for them now) and receive the Dollars at a specified time in the future. They make their money by the interest made on holding your funds and they have already bought dollars in the past and are holding them.

i hope is of use

any other questions just ask

regards

Alex

Thankyou,Alex.

If you want more information about the currency exchange process check out