Euros or local currency?

Is it better to have the currency for each country or to use the Euros?
Thanks for the help,
Wendalina

[ 08-09-2001: Message edited by: Antonio ]

I don't think the euro is in general circulation yet (I believe it starts Jan 1,2002), so if you are going to Europe NOW, you still have to use the local currency.

Euro is not working by now except for ¿American Express? cheques.

But in November, bank transfers of money will be avaliable in Euros.

Don't buy Pesetas here in the States... use your bank card at one of the many ATM's and only get what you need for the day.. the ATM's are everywhere! The Euro does begin general use in Spain on 1/27/02... or 27/01/02...

I agree with jllawson, use of ATM's is easiest way to obtain local currency. The Euro, although accepted, does not have the best exchange rate at the moment. I will be using the pesata right up until the end of the year, and will regret it's demise.

From September 15th, banks will automatically convert all accounts into Euros, unless the customer request to keep them in pesetas until January 1st, 2002.

I'm not 100% sure but I think you can already use the Euros in all kind of electronic transactions (ie, everytime cash is not involved).

By the way Sue, the exchange rate between the Euro and the Pesetas is fixed: 1 Euro = 166,386 pesetas. It's the Euro's exchange rate that changes with the Dollar or the Pound.

For more information about the Euro in Spain, have a look at the official site from the Ministery of Economy.

I think I am going to use the Peseta, simply because it will be my last time to use it before the EURO takes control. Antonio, do hostels take both? does anyone take USD?

Wendalina, Euros won't be available in cash until January 1st, 2002. Actually, banks will get them in September and some big shops will get them in December. This is for logistic reasons. It's quite complicated to deliver Euro coins and notes to every corner of Spain in a few days.

Hostels won't take Euros until they are available. However, those taking credit cards may charge you in Euros. I'm not sure about it. As for USD, some of them may take it but most of them not because then they have to go to the bank to change them and also because I don't know what are the notes like and I may get false notes.

Hi Antonio,
When I come to Spain in a couple of weeks(can't wait) I am going to bring part of my money in euro AAA travelers checks. Will the banks in Spain charge me a fee to cash me euro travelers checks or will I get entire 166,386 per euro?
Also, will the banks in Spain charge me a fee every time I use their ATM machines? My bank charges me a flat fee of $5 every time I use an ATM machine in Spain. Can't win!

As far as I know, only if you have American Express checks and you cash them at their office you won't be charged any commission.

Although I think they shouldn't, banks charge commission to change money between currencies that are in the Euro.

As for ATMs, Visa / Mastercard charges all banks in the world for using their networks and banks pass these charges to their customers together with a commission from the bank where you are getting the money. You'll have to ask your bank manager about getting cash in the Spanish ATMs. There are three main networks: Servired, 4B and Red 6000. I think all Spanish banks/ saving's banks are connected to one of this networks. Maybe they charge different commissions, but I don't know.

[ 08-23-2001: Message edited by: Antonio ]

I don't know about fees and such things, but of what I'm sure is that you get the full 166.386 ptas per euro. This is because they now are the same currency (the value of ann euro does not change in comparison with the value of a peseta).

This means that if you change dollars into pesetas what you take as reference is the parity euro/dollar, and then convert it into pesetas at the exchange rate of 166.386 pesetas per euro. Understood? (if you understood it buy yourself a candy :p).

Fernando

Bob,

I suppose you don't mean a commision for changing euros to pesetas, but for changing A. Express' euros checks into euros(pesetas). In this case, they are not suppossed to charge you anything, but I would not be as sure as the post above.

-------------------------------------------

I have just asked the bank I am client of (BCH), and they tell me they don't charge anything for this either.

[ 08-24-2001: Message edited by: Ignacio ]

I heard that from the 1st of October on banks are not allowed to ask a fee anymore when changing money from one european currency (that is part of the Euro group)into the other. So for the European dudes, like me, that are going home and take back some pesetas, wait until October to exchange the money back into your own currency.

For people that want to travel around europe between October and January, change your (european) money in banks and not the small tourist exchange kiosks, because I expect this last group will keep asking exchange fees until the very first of the next year.

PS
And for who doesn't know it, the English Pound is not part of the Euro-coin.

As usual, great info. Thanks All