If you’re planning a trip to the United States soon, you may want to exchange some of your Pakistani rupees for U.S. dollars, the country’s official currency. The international symbol for the U.S. dollar is $.
In 2021, more than 40% of international payments were made in U.S. dollars, the most widely used currency in international trade. Denominations for U.S. paper currency are $1, $2, $5, $10, $20, $50 and $100. Although the United States stopped issuing larger bills, such as $500, $1,000, $5,000, and $10,000, they may still be in circulation and are considered legal tender.
In addition to the United States, countries that accept the U.S. dollar as currency include Aruba, Barbados, the British Virgin Islands, Curaçao, Ecuador, El Salvador, Haiti, the Marshall Islands, Micronesia, Palau, Panama, Tanzania, Timor-Leste, Turks and Caicos and Zimbabwe.
This post has everything you need to know about converting rupees to U.S. dollars, including where to secure the best exchange rates and how to avoid paying high fees on your conversion.
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How to Convert Pakistani Rupee to U.S. Dollars
Fortunately, converting the Pakistani rupee to U.S. dollars is fairly simple. You can make the conversion using a calculator, or you can do it manually with just pen and paper.
1. Use a Currency Calculator
Using a currency conversion calculator is often the easiest way to get an estimate when converting currency. Since exchange rates fluctuate daily, using a calculator can ensure your math is correct.
Keep in mind that exchanging currency often comes with added fees that a conversion calculator won’t be able to predict. For instance, credit card companies and ATM networks usually charge a 1% conversion fee on foreign transactions. Individual merchants may also charge fees if you ask them to convert the price of an item to your home currency at checkout.
2. Calculate it Manually
The other option is to do the calculation manually using a simple mathematical formula. However, to do this, you need to know the current exchange rate. At the time of writing, 1 PKR is worth 0.004 USD.
Once you know that information, multiply the amount you have in PKR by the current exchange rate. The resulting number will show you the amount of USD that you have to spend on your trip.
Manual Currency Conversion Example
Let’s say you have 100 PKR and would like to figure out how much USD you have for a trip to the United States. Using the current exchange rate, the formula for your conversion would look like this:
1,000 PKR x 0.004 = 4 USD
How to Buy USD
When you’re ready to buy USD, it’s a good idea to plan ahead to ensure that you pay the fewest fees. Here are three ways to get the currency you need while minimizing the fees you’ll be charged:
- Visit your bank’s website: All banks in Pakistan provide an online foreign exchange portal for submitting currency exchange requests.
- Open a foreign currency savings account: Particularly if you regularly travel from Pakistan to the United States, it may be worthwhile to open a foreign currency savings account. For example, HBL, Pakistan’s largest bank, lets you set up one of these accounts in USD, GBP (pounds), or EUR (euros) with the equivalent of 1,000 USD.
- Use your bank’s ATM abroad for withdrawals where possible: If you need to exchange more money while you’re on your trip, try to find an in-network ATM. Most banking apps have an “ATM locator” feature to help you find the closest option, and using an ATM affiliated with your bank can help you avoid excess fees.
- Order currency online: You can use a third party to get currency delivered to your door. However, be aware of the costs associated with some of these vendors. Currency Exchange International (CXI), for instance, advertises that it does not charge an exchange fee. However, you’ll pay up to $30 for overnight shipping.
Keep in mind that taking foreign currencies out of Pakistan is limited to 10,000 USD. In addition, the State Bank of Pakistan requires biometric verification of the purchase of 500 USD or more on the open market. Furthermore, Pakistan’s central bank restricts the purchase of foreign currencies through exchange companies to 10,000 USD per day and 100,000 USD per calendar year.
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What to Avoid When Exchanging Currency
- Exchanging currency at the airport: While exchanging currency at the airport is unquestionably convenient, these kiosks often offer some of the worst exchange rates while charging some of the highest fees.
- Paying with a credit card: Try to pay in cash while you’re in the United States rather than with a credit card. Why? Because a credit card issuer might give you a worse foreign exchange rate than a bank.
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