How To Not Get Ripped Off Exchanging Money At The Border

I needed to exchange money as I crossed the Malawi-Tanzania border, but I didn’t know the Kwacha-Shilling exchange rate. Without the Internet to help me, here’s how I didn’t get ripped off by the currency exchange con-men, and how you can avoid getting ripped off too.

 

1. Count Your Money Before You Reach The Border

 

Don’t be stuck counting your money in front of these guys. First, it’s awkward and slow when you want to make a quick exchange.

 

Never, ever let them count the money for you. If you ever let them  get their hands on your money before you’re ready to transact, some of it might mysteriously ‘disappear’ into their pockets.

 

2. Ask Multiple Un-Related People For The Exchange Rate

 

If you’re unfortunate enough to not have Googled the rate before reaching the border…

 

The first guy you ask, or likely the first guy who excitedly approaches you, is lying… sometimes 50% or more. Get him to tell you his ‘rate’ first, but don’t accept it. It’s your new baseline, not the truth.

 

Ask the official who stamps passports for the exchange rate. If there are other travelers, ask them. Build consensus from multiple people who don’t know each other.

 

3. Ask For The Exchange Rate In Reverse

 

If you want to exchange Kwacha into Shillings, ask for the rate to exchange Shillings into Kwacha first. If they skew it heavily in their favor, then it’s more difficult for them to backtrack when they realize you actually want to transact in the other direction.

 

4. (Probably) Don’t Exchange With The First Guy

 

You don’t want to transact with the first guy who approaches you. Often, the most excited money-changer is excited because he knows he’s about to make a lot of money ripping you off!

 

If you don’t know the exchange rate… balk at whatever price the first guy tells you. “You’re crazy!” Say this confidently, even if you don’t know if his offer is fair. This is how you learn how close you are to the truth.

 

5. Never Feel Pressure To Do The Deal

 

Sometimes, they’ll tell you a story about how they’re the only guy to exchange with.

 

They’ll walk with you nearly across the the border, then calculate your exchange rate as half of what you initially agreed.

 

They’ll try to give you a hard time, mixing up the 10,000’s you need with the 1,000’s they handed you. Oops.

 

Never feel pressure to do a deal with anyone. Your BATNA is to go to the next guy. If someone is messing with you, walk away.

 

6. Give In On The Small % Differences

 

Once you’ve established a ‘fair’ exchange rate, you still need to find someone willing to give you a similar rate. If you do the math and the ‘exact’ rate is say… 50,534 Tanzanian Shillings… offer to accept 50,000 flat. They’re running a business, they need to make money, so give them their profit easily and without BS. Hopefully, by giving a little you avoid getting ripped off by a lot!

 

7. Don’t Walk Away Too Soon

 

While you usually will be able to find someone else to negotiate with, don’t ‘balk and leave’ too soon. Sometimes, there aren’t unlimited people to exchange with, the longer you communicate with one person the more you will learn, and possibly, he isn’t ripping you off so badly.

 

Always be willing to walk away, but don’t make the mistake I have, where I walk away too soon and realize that I still don’t know anything and now don’t even have someone to talk to.

 

Final Takeaways

 

Exchanging money at the border, especially between small African countries when you don’t know the exchange rate, can be a bit stressful. At least you can use this quick rundown to avoid getting totally ripped off.

 

And of course… if you have Internet before you cross, look up the rates before you go!