Summary of Currency Conversion in Greece
What Your Money is Worth in Greece
Traveling in Greece? To find out what your home currency is worth in Euros, or any other currency, you can use a currency converter. The official currency used in Greece is the Euro.
Oanda Currency Converter
OANDA powers numerous currency converters available online. Their homepage defaults to the U.S. Dollar to Euro conversion, but other currencies can be easily selected from the drop-down menu. Any amount of dollars and euros can be chosen.
Bloomberg Currency Converter
Another useful converter. Scroll down to select your currencies, which are arranged alphabetically. The Dollar is listed under ‘United States Dollar’ and the Euro is found just below it.
Costs of Converting Currency
An unfavorable exchange rate can be frustrating; however, conversion costs can further complicate matters. Typically, travelers will encounter a range of fees while converting dollars to euros and vice versa. Understanding these costs can help you make more informed decisions.
Currency Exchange Offices
At the Airport, currency exchange offices have two main advantages: they may not offer the best available rate, and they often charge substantial fees — sometimes as much as 5%. Therefore, this method of currency exchange should be approached with caution.
Currency Exchange Machines
These machines are becoming less common due to the prevalence of ATMs; nevertheless, you may still encounter one. You deposit your local currency, and after some processing, a specified amount of Euros is dispensed. Keep in mind that the machine, similar to exchange offices, is also likely to charge a fee, which is typically reflected in a less favorable exchange rate.
Using ATMs for Currency Conversion
Using your ATM debit card is usually the most cost-effective way to obtain euro currency. Banks process transactions immediately at a relatively good rate. Nonetheless, be aware that you’ll still incur an ATM transaction fee, and more banks are increasingly implementing extra international transaction fees.
When using a credit card, you may receive a reasonable exchange rate; however, interest charges on most credit cards apply immediately, as there is often no grace period on cash advances. Notably, cash advance interest rates can significantly exceed those on regular purchases, potentially impacting your budget.
Additionally, be mindful that a credit card transaction fee may apply, along with a fee for using the ATM. Happily, many newer credit cards have started to reduce fees on international transactions, recognizing the needs of frequent travelers. Searching for the best credit card that offers favorable terms for international purchases can lead to significant savings.
The Value of the Drachma
If you’re curious about converting old prices from drachmas to Euros, remember that during the transition to the Euro, the fixed exchange was established at 345 drachmas per Euro. Therefore, if something today costs 10€, it would have been priced at 3450 drachmas in the past.
In practice, many prices in drachmas were rounded to align with more convenient amounts in Euro currency. Travelers often notice this effect in prices for beer and other alcoholic beverages.
Impact of Euro Adoption
Travelers may feel the change in costs from drachmas to Euros; however, the Greek population has experienced a notable decline in purchasing power as items essential to everyday life have increased significantly in price. Some estimates indicate a nearly 30% decrease in real spendable income since the adoption of the Euro. While this information may not directly ease your concerns regarding exchange rates, it highlights the broader economic challenges faced by both visitors and locals alike.
