Buy traveller`s cheques before 3.30 pm during the week if you want to save
some cash. If you buy them any later, or on a Saturday, expect to get a
little less foreign currency for your money.
Craig Macfarlane, of Rennies Travel, explains why it`s generally a little
cheaper to buy your traveller`s cheques during traditional banking hours.
``The currency markets close at 3.30 pm.
Banks and foreign exchange outlets
need to increase the cost of the foreign currency to protect themselves
against losses. They can only buy foreign currency the next day to cover
money sold after-hours to customers.
``When markets open again, there is the risk that dealers will have to pay a
higher price for the currency than the price at which the outlet sold the
currency. The extra cost is to protect ourselves against a potential loss
because of market fluctuations.
If dealers believe the rand is weakening,
they are likely to increase the margin more than when the rand looks like
it is set to rise. The other option would be to stop selling after 4 pm,``
Macfarlane adds.
During banking hours, it`s easier for dealers to keep the price at which
they buy foreign currency slightly lower than the price at which they sell
the currency to customers.