The U.S. dollar, represented by the symbol $, is the currency of United States of America. It is widely used around the world for international trade and economic activities. If you plan to visit the U.S., understanding its currency can help you immensely. After all, nothing can derail your trip, like scrambling to figure out exchange rates or wondering if the store manager will accept your credit card.
In this blog, you will learn about the US dollar currency – its value, denominations, and how to use it effectively during your trip.
List of currency notes in the US
The US Federal Reserve (the U.S. central bank) issues seven denominations of paper currency – $1, $2, $5, $10, $20, $50, and $100. The highest denominations ($500, $1000, $5000, and $10,000) are no longer circulated. Additionally, coins in the U.S. are produced in several denominations for every use. They are available in the following denominations: Penny (1 cent), Nickel (5 cents), Dime (10 cents), Quarter (25 cents), Half Dollar (50 cents), and Dollar Coin ($1).
Using Indian currency
Indian currency in USA is not accepted as legal tender. Therefore, you must convert your INR to U.S. dollars before your trip. You can exchange the currency for USD from local Indian banks, exchange bureaus or international airports. Some Indian banks provide Forex Cards, which are quite convenient. You can load them up with USD and make a secure payment option at hotels, restaurants or malls.
Few online forex exchanges also support currency exchange. The USA exchange rate is subject to change depending on inflation, economic growth, interest rates, etc. Stay updated on exchange rates and strategise your currency conversion to maximise the value of your money. Most Indian banks offer international credit/debit cards that you can use for international transactions.
Methods of payment in the US
While digital payments are widely accepted, it is advisable to carry cash. Some of the common payment method USA include:
- Credit and Debit Cards: International credit/debit cards such as Mastercard, Visa and American Express are accepted in the USA. You can withdraw money from ATMs with international debit cards.
- Cash: You can carry USDs for small purchases or in areas with limited card acceptance.
- Digital Wallets: PayPal and Apple Pay can be used for contactless payments. However, not all merchants accept these methods.
- Prepaid Cards: You can load USD onto prepaid prepaid cards and use them for transactions.
Tips to save money when travelling in the US
Before visiting the USA, plan wisely and manage your expenses effectively. Here are some tips for managing your money while travelling in the U.S.
- Before travelling, check for available lodging options that align with your financial situation. You can book budget hotels, lodges, motels, etc., for seasonal discounts.
- You can find coupons and discount cards for activities, restaurants, and attractions in travel brochures, guides, and online resources. They can help you save money during the trip.
- Diners and food trucks offer affordable meal options. You can also buy groceries, snacks or cheap pre-cooked meals at supermarkets.
- Look for second-hand shops or outlet malls for souvenirs and gifts to take back home.
FAQs
- What are the external factors that influence the USD exchange rate?
External factors like inflation, economic activities, supply and demand and geographical factors influence USD exchange rates.
- How many cents are there in $1?
There are 100 cents in 1 dollar.
- Is choosing a tailored travel insurance mandatory before travelling to the USA?
Purchasing an international travel insurance plan is not mandatory but highly recommended.
- What is the best way to exchange INR for USD?
You can exchange INR to USD at banks, airport exchange kiosks or online forex platforms.
Conclusion
Proper research and planning can make your U.S. trip a memorable experience. It can help you manage your finances better and avoid unexpected expenses. However, don't overlook the importance of selecting an international travel insurance plan for your trip. Purchasing a tailored policy, like travel insurance for USA, can protect you from many unforeseen travel emergencies like loss of luggage, flight delays, or cancellations, ensuring you're not left financially stranded.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.