Simon Black – About a week and a half ago when I landed in Australia, I walked past the currency exchange booths in the arrivals hall and took a quick look at their rates.
Their quoted price to change US dollars into Australian dollars was 77 cents that day.
I quickly glanced at my phone and found that the actual market rate was just 72 cents.
So these guys were charging an unbelievable 7% markup! And that was on a major currency.
For people who happen to come from more exotic countries, the price is even higher.
If you hail from Costa Rica, for example, these airport guys won’t exchange Costa Rican colons into Australian dollars.
So you first have to exchange colons for US dollars in Costa Rica (and pay some overpriced exchange rate), and then once again change US dollars for Aussie dollars at a 7% markup once you land in Australia.
This is such an incredible scam, one of many that exists in the global financial system.
One of my favorite financial scams is in sending wire transfers.