What is the proper mix of currency and travelers checks to take on a foreign trip?
If you are going to a country known for currency fluctuations, you may want to consider having two kinds of travelers checks – the first in the currency of the country you are visiting (if the are available; call your local bank) and the second in U. S. dollars. This mix will give you some degree of hedge if the dollar strengthens or weakens. (if it strengthens, you would, of course, convert the U.S. travelers check; if it weakens, you’d use the foreign denominated checks.) Even if you have foreign-denominated checks, it’s still a good idea to have some banknotes (cash). It may save you waiting in a long line t the airport, since you’re sure the cab driver won’t cash a travelers check. Unless it is prohibited by regulation, a good rule of thumb is to have about $50 to $100 worth of local currency at the time of your arrival. Travelers check in the local currency can be used almost like cash at most stores, restaurants, and hotels.
