Don’t look now, but you just got a little richer. There’s just one catch: you have to go traveling.
Trying to explain why the U.S. dollar is going up or down is something even experienced economists have trouble with, so I won’t bother trying. Just know that it involves the perception of our economy’s health, the relative strength of other economies’ health (especially Europe and China), and what’s going on with the corresponding economy of the currency it’s trading against.
The bottom line is, we’re in a golden period right now where the dollar is relatively strong, which is good news for travelers. It takes a little sting out of the most expensive places and makes the cheaper ones even cheaper.
Here are a few key places where you’re better off now than you were a year or two ago.
I discussed this one in detail already recently, so go check out my cheap Argentina post. Today the “blue rate” is 14.7 to the dollar, compared to under 9 for the official rate. Take lots of cash.
I arrived at the Guadalajara airport a few nights ago and laughed as I saw the exchange booth giving a rate of 10.9 pesos to the dollar. I walked over to an ATM and got 13.4 to the dollar. This is a great time to be in Mexico, but unlike in Argentina, don’t come with a briefcase full of cash. There are exchange restrictions and in most areas you’ll get a worse rate than just taking money out of your own bank account with a debit card. If you can find a CI Banco machine, they have the lowest fees. BanNorte has the highest.
This country has been a political mess for a while and that is (probably temporarily) pushing down the value of their currency. Right now the official rate is 32.4, which is 10% better than where it was in late 2012. Avoid the protest zones in Bangkok and enjoy.
The first time I went to Hungary the exchange rate was around 215 forint to the dollar, the second time it was around 240. That approximate 10% move made a significant difference in how cheap it felt for a beer, a meal, or a locally priced hotel. It’s back up to that point again, so this is a good time to spend a few days in Budapest and then hit the countryside.
This time two years ago a U.S. dollar got you 2.6 new soles. Now you get 2.9. Peru can be an expensive place if you go during high season and you’re on the tourist trail shared by people with loads of money checking something off a bucket list. Take a side trail though or go between October and April and your soles will go a long way.
This is not one of The World’s Cheapest Destinations by any means, but when I wrote this post about how expensive Chile was when I was there two years ago, a dollar got you 480 Chilean pesos. Now a dollar gets you 590. That’s a 23% increase in purchasing power. It’s still going to be more expensive than it’s neighbors, but it won’t feel so out of whack as before.
The swings are less than 10% in the following in 2014, but right now the dollar is at or near a two-year high in Canada, Brazil, Colombia, Nicaragua, Morocco, Australia, New Zealand, Indonesia, Laos, Vietnam, Philippines, Singapore, Taiwan, Bulgaria, the Czech Republic, Romania, Turkey, and Egypt. I expect you’ll see most of Africa’s currencies plunge in the next few months because of the ebola effect, even if they’re 2,000 miles away from the outbreak.
If you’re a traveler and you want to keep up with exchange rates, there’s an app for that. I use one called Exchange Rates on my Android phone and one called Currency App on my iPod Touch. In either you can set up which currencies to follow and it’ll update when you refresh.