A few years ago, I was in Eritrea on a personal independent holiday. Other tour companies were handing out pre-tour information and verbally explaining to their guests that the official exchange rate was the exchange rate. I’m not sure whether it was a lack of knowledge, lack of caring, or a high degree of caution (although taking tours to countries such as Eritrea or many other destinations like it would usually mean that one would have their wits about them, and know how to deal with something as every-day as a black market). I spoke to lots of travellers who had gone on organised trips and I heard the exact same thing time and time again, that they had received the official exchange rate from their tour guides. This shocked me as it meant that Eritrea would have become quite an expensive country.
Several travellers I spoke to were told that there was a black market rate but that it was too difficult or too dangerous and not really worth the effort. I have always wondered whether their guides made a few extra dollars on the side with the difference, however I do really doubt that.
The first question you should ask yourself when travelling to a new country is ‘is there a black market rate here?’ This question isn’t the easiest to answer but there is a simple way to get an idea – are prices more expensive than they seem like they should be? Like in Venezuela where a Big Mac cost the same as an airplane ticket at the official rate. Recently I read complaints online of a hamburger costing $40-50 in Lebanon, but the person complaining hadn’t realised it would have only been 1 or 2 dollars at the black market rate. Maybe if you’ve gone to Gordon Ramsey’s burger joint you’d expect to be ripped off like that, but at a normal every day place on the streets of Lebanon, alarm bells should have been ringing. More often than not, such as when there was a black market rate in Uzbekistan, the difference wasn’t that great, usually it was around double, so something that should be $5 was $10 at the official government exchange rate.
The next question is how to get the much more palatable black market rate? In some countries you’ll have money changers literally swarming like flies, ready to get your business, fighting over offering you the best rate. In other countries such as Eritrea it’s much more nuanced. The first time I went to Eritrea, the price of some goods just didn’t seem right, so I asked the hotel receptionist whether there was a black market, to which he responded “I’m sorry sir, it’s illegal to change money anywhere other than at the bank”. We then went for a walk and I proceeded to enter a few locals shops and ask the same question “Do you know where I can change money?” to which a couple of responses were “the bank”. Finally, I then said to one shop keeper that “I was hoping for a better rate” to which he did the same ‘don’t you know its illegal” song and dance, but then as I was leaving he turned and said “please just wait one moment sir”. After a few minutes he had a bag of cash and changed money at triple the official rate. All it took was about 45 minutes.
A similar thing happened in Ethiopia. I was sitting in a bar enjoying a few beers and noticed that the locals were throwing back a lot of beers, but these weren’t that cheap. Either they were getting a cheaper price than me or the ATM wasn’t giving the rate the locals were getting.
It always amazes me when I’m in Turkmenistan and I see tourists changing money at an official exchange centre. Doesn’t it seem weird that the tin of pringles they just purchased was US$15? Rather than $1.50. Likewise in Turkmenistan, you can walk into shops and just ask politely and quietly. Many won’t get involved as they themselves might be worried that they are getting tricked by a scrupulous policeman looking for some vodka money.
How do you find out the black market rate? This is probably the hardest question. While some countries such as Iran and Lebanon have dedicated websites updated in real time, other countries such as Turkmenistan, Afghanistan, or Eritrea, it’s all word of mouth and local knowledge. Worst case scenario you get ripped off by the black market exchanger, but this will still be better than the official exchange rate, which you should already know. Of course you could just come with us and anyone who knows me, knows I like to squeeze every penny, and with getting the absolute best rate, it’s no different!
If you want to see Ben work his magic with a black market, join us in Lebanon .
