[robin7657]

I'm leaving for Hong Kong from the U.S. next Monday. What's the best way to bring some money for initial expenses? Should I bring some US dollars and then exchange them at Hong Kong or should I exchange them into HK $ in the US? I have a Bank of America debit card, but I have no idea how much fee they charge or what's the exchange rate for withdrawing money from an ATM abroad. I called them and their customer representative had no idea about that. Also, is there a limit for how much money I can bring into HK?

Thanks!

[berryplucker]

No limit on bringing money in. Credit cards and ATM cards are probably best in the short term, but get a bank account set up ASAP (a letter from your employer stating your position, salary etc. should be sufficient to get you an account and a local credit card with, for example, HSBC even before you have your HK ID card). As soon as you have the bank account then I would do a wire transfer from the US account. If you go for something like a Powervantage account from HSBC then you can have a US$ account running alongside your HK$ account and when you transfer money in it comes as US$ and you can then convert locally to HK$ as needed (although since the rate is pegged timing doesn't make much difference).

[KnowItAll]

Amen.

Would like to add -- avoid the american banks here in Hong Kong.

[nivantj]

Agreed, thats probably one of the best way... However, i would not use US credit cards or ATM cards. Either cash or TCs. Its so easy to bring in and convert them in HK at good rate. Why pay for Transaction charge + Lower conversion rate + Other charges (If any)....

[doogle]

In your wallet (is the best way).

Credit cards are consistently the best way to use foreign currency - the exchange rate is very competitive.
After that, the exchange rates from small currency exchange bureaus/shops, believe it or not, offer very competitive rates.

Banks charge the worse rates for exchange. I think it's because they know they can get away with it, because when people exchange with a bank they have to and will pay any rate.

As for which is better - doing it here or there - I dunno.

[shri]

>> Credit cards are consistently the best way to use foreign currency - the exchange rate is very competitive.

No.

Check the spread that the banks use.

A typical bank will use the exchange rate of about 7.5HK$ for 1 US$ for credit cards, if you're lucky. Other banks, specially regional / smaller American and European banks use even worse spreads.

Check with your bank before you spread wrong information.

The best exchange rates are as follows

0) Interbank Transfers
1) TC
2) Cash
3) Credit card

[berryplucker]

Shri,

I beg to differ on how bad credit cards are. I use the Citibank Cathay Co-brand card and on a recent trip to the US I was getting US$1=HK$7.95 which is less than 2% off the pegged rate.

But online banking transfer is obviously the best. Today HSBC offers me 7.806 for transfering HKD to USD and 7.792 for USD to HKD.

Exchanging physical notes is always significantly more expensive than moving funds electronically.

For example, Travelex at HK airport (http://www.travelex.com.hk ) offers for advance order: HKD -> USD 8.0865
(But I know these guys are rip-off merchants - some of the rates they offer are completely outrageous.)

[robin7657]

Thank you all for the information. Very helpful!

[shri]

Pluckie, Not saying that they're bad. Just saying that you are not as good as uncle doogie would have us belive.

[hmcl]

The best exchange rates are as follows

0) Interbank Transfers
1) TC
2) Cash
3) Credit card

Depends. Deposit for instance 100 US into your HK$ savings account with HSBC and the rate is 7.74. Over 10,000 US and there is a .25% fee levied. Cash (US$) is okay but you need a local account.

Han