Most of the times, using an expression instead of another can backfire on us. Such is the case of «travel money purchase» and «foreign currency exchange». Because, let’s be honest… do we really know when we can use one or the other?
For starters, if we take into account the Oxford Dictionary’s definition for «money» and «currency» individually, we find that:
- Money: A current medium of exchange in the form of coins and banknotes; coins and banknotes collectively.
- Currency: A system of money in general use in a particular country.
In other words, when we talk about «money» we are referring to the trading unit used in a country (for instance, the Mexican peso would be the unit used in Mexico), while «currency» directs to that very same unit but with a different value when used in another country.
Setting things straight about certain economic concepts
If we delve a bit more into this, we realise that travel money purchase, which is what Global Exchange does, is not the same as foreign exchange. Let’s find out why.
First and foremost, just as the Bank of Spain explains, we understand travel money purchase as the purchase/sale transaction involving foreign banknotes, i.e., if you are travelling to the Dominican Republic, you have to exchange your euros or dollars for Dominican pesos, which is the local currency in the country.
On the flip side, those transactions that do not imply moving actual money (depositing euros in an account from a transfer received in dollars, paying in Mexican pesos a cheque issued in euros or making card payments outside the Eurozone during a trip, for example), would be considered foreign exchange.
Now that you know what the difference between these two concepts is, what are you waiting for to exchange your travel money with Global Exchange for you next trip?