Most Americans have likely never even held foreign currency. The New York columnist for "Money", hiding under the pseudonym Ohubelka, tells why it is not needed and what the minority does when they suddenly need strange foreign banknotes.

As the classics taught us (or rather, those of us born before, say, 1975), capitalism is doomed. The thought of this haunts millions of capitalists and a huge number of their sympathizers. It goes without saying that the collapse of capitalism will mean the collapse of all its symbols: Hollywood will make films about the safety of sheep farming, a school for working youth will be opened in the White House, and dollars will be used for kindling. Naturally, the question arises of what the residents of the country, the epicenter of the coming collapse, can replace these very dollars with. How and when can the average American get hold of hard currency: promising Chinese yuan, sovereign Russian rubles or, at worst, crisis-ridden European euros?

I will say right away that the above-mentioned average American almost never encounters foreign currency in cash. Because he doesn't need her. Typically, we view foreign cash either as a way to protect our savings or as an attribute of traveling abroad. The habit of holding the currencies of other countries as a hedge against inflation is alien to Americans. No wonder: storing any cash is inconvenient and risky. And the presence of a developed banking system (deposits in which are guaranteed by the state) and multiple alternative investment options make this idea completely pointless.

Now about tourism: according to various estimates, approximately 22% to 37% of Americans have passports. And since Americans don’t need a passport in everyday life, we can safely assume that although not such a small minority, it is still a minority who travel abroad. What to do if you are part of this very lively minority and you need to “go to Paris, on business, urgently”, you only have dollars in your pocket, and for happiness and peace of mind you would prefer euros? You have three options.

Use an exchanger. Everything happens according to a scheme that is well known to most readers. You simply exchange your U.S. currency (cash or non-cash) for foreign-issued cash at extortionate retail rates. The main advantage of this approach is the speed of obtaining foreign currency. The disadvantages are related to the difficulty of finding exchangers (usually these are small kiosks at airports, and not all of them; there are street exchangers only in the largest cities and hotels - for overexpensive tourists) and a rather large markup on the current exchange rate (probably for convenience).

You can order currency from your bank. The procedure is simple: you need to fill out one form at any branch of your bank (or a form on its website on the Internet), where you indicate the currency you need, the amount, and the denomination of banknotes. When your currency is ready, you will receive a call from the same branch and will be told that the money can be collected. Everything is quite simple and you don’t need to scour the city looking for a hotel with an exchange office. Advantages: simplicity and reliability (you know who you are dealing with and who to complain to if something happens). Disadvantages: this process usually takes two to three days, and the bank adjusts the exchange rate in its favor by about five percent.

The third and sometimes most favorable way from an exchange rate point of view to convert dollars into, say, euros is to purchase from a specialized company via the Internet. Everything is quite simple here: you go to their page on the Internet, order the amount you need in foreign currency (payment by credit or debit card), and in a day or two, the courier will deliver a package with money to the address to which your card invoice is sent. However, there are difficulties here too. The most important thing is that when dealing with such companies (which, naturally, lure the naive buyer with a nice exchange rate), you risk encountering a lot of incomprehensible fees, surcharges, and so on. In the end, what looked so attractive will cost more than the exchange kiosk of the greediest New York hotel.

Summary: buying cash currency for Americans is, although not difficult, often difficult and even more often unprofitable. Experienced travelers get cash from ATMs in the host country (it's not free, but it's not expensive either) or, even more profitable, use credit cards issued by banks that do not charge what is called a foreign transaction fee - a fee for purchases made abroad (large American banks issue such cards, for example, CapitalOne).

Let me emphasize again: for the average American, the purchase of foreign currency is not an investment, but a function of traveling abroad. There are, of course, enthusiasts who play in the Forex market, but they are a separate and sad conversation.

Once upon a time at the exchanger