You won’t have any trouble finding a place to trade your dollars for pesos in the Philippines. Due to the high number of overseas Filipino workers and visiting tourists, Filipinos are used to working with and exchanging foreign currency. In Manila, where I am now living, you can find money changers (the signs are all in English) on practically every major street and sometimes they are even lined up in rows. If you are in possession of either US dollars or Japanese Yen, you can still get your money easily exchanged even in the province. Although finding a money changer is easy, finding the best exchange rate takes a bit of effort and preparation.
Knowledge is Power
Don’t rely on what the exchange rate was when you left your home country or even on what it was yesterday. Check the rates online before you head out that day. Many money changers update their rates 2 or 3 times daily. Money changing is a business so you won’t find the quoted online rate unless they are behind in their updates or the rate has changed since you checked. Use the online rate as a guide to what is fair to both you and the money changer. In spite of the Philippines’ reputation for corruption, there are many fair and honest money changers here. You just need to take the time to find them. I use XE.com as my guide for exchange rates. Generally, here in Manila, I expect to be able find a rate within 1 peso or less of the quoted online rate. If it’s more, I keep looking. If you will be heading to a tourist area, the gaps will be higher.
Avoid the Known Low-Ballers
Banks in the Philippines are certainly easy to find. Their highly visible security guards may also make you feel safe. However, banks offer the lowest rates in the country. So unless you are desperate, avoid them.
You may also be tempted by the shopping mall currency exchange centers especially if you just spotted something that you must have and are running low on pesos. Although their rates are slightly better than the bank’s unless you have no other choice, walk on by.
Look for the Pawnshop/Money Changer
Although the Money Changer only shops and the combo Pawnshop/Money Changer shops generally offer similar rates, Filipinos tell me the Pawnshop is often a safer bet. Some money changers are too fast with their hands. As they count your money, they take some bills back and count it again so you appear to receive more than you actually do. Surprisingly some money changers don’t post their rates. One such shop tried to offer me .33php per Japanese yen. Maybe they thought I had just arrived and wouldn’t know the exchange rates because I was an American with Japanese Yen. The real exchange rate online for that day was .4680php and I ended up getting .4620php at a nearby pawnshop. In contrast, the Pawnshops I have visited post rates clearly and take their time to count back your money. Often they even have two people counting the money before giving it to you.
Other Tips
Don’t go at night. Most of the legitimate Pawnshops and Money Changers close early (between 4 and 6pm). Black market shops may be open at night but don’t risk it. A Filipino friend experienced a trick of hand (they counted out her money but kept almost 1000php), a change of rates (when she protested) and intimidation (the sudden arrival of a guard behind her). By the time she left, she was glad to get out safely with whatever money she could.
Give yourself time. Don’t be afraid to shop around like the Filipinos do. It’s expected and that may be why many Pawnshops offer good rates. They don’t rely on tourists and are looking for repeat customers (like Filipino overseas workers).
Don’t flash it. I once saw a tourist walk out of a shop flashing about 20,000 php (around $440) in his hand. That is more money than many people make here in one month. It is not only dangerous; it is in poor taste. Keep your money hidden. I prefer my little sister, Maggie’s method from her Namibian days of splitting it up so it’s not all in the same spot.
Exchanging money in the Philippines doesn’t have to be hard. By preparing ahead of time, shopping around and staying alert, you can find a fair and honest shop to exchange your dollars for pesos.
