Offshore Banking

With the dawn of a new month, it is time to pay the monthly rent.  As I log onto the Tatra Banka website, I am first asked for my account number, and online password.  Upon entering in my password, I am then prompted for an 8 digit code, which I must retrieve by using my small calculator like key pad, inserting my bank debit card, and entering the pin code, almost like a mini ATM without the cash.  I then am allowed to enter the site.  But before I can make any transfers, I again must use the calculator like key pad and debit card, confirming both the amount and account which I am transferring funds to, before my transaction is complete.  While the Caribbean or Switzerland account might be more popular, offshore banking in Slovakia might be more secure.

 Although the Euro is constantly making headlines for other reasons, the actual currency itself is very different from traditional US.  Coin denominations include a .01, .02, .05, .10, .20, and .50.  Unlike the US, which I have seen recent articles written to replace the $1 USD with a coin, there is no paper currency for €1 and €2 Euros as both denominations are only coins as well.  The lowest denominated bill is €5 Euro.  The amounts of paper currency include the €10, €20, €50, €100, €200, and €500 Euros.  However, what makes the paper currency most interesting is actually the different sizes and colors which represent each amount, very similar to monopoly money (color wise).  The larger the Euro amount, the greater the width and length of the note.

  When obtaining cash from an ATM (or cash station as I say in Chicago), typically in the US, the highest bill the machine will provide is $20.  However, here the machines typically provide €50 and €100 notes, and in extreme cases the €200 or €500 notes, both of which I have yet to see.  The €200 or €500 notes would be equal to $262 and $655 respectively in US Dollars.  The one other thing I notice here in Europe is when paying, anytime change is due, the cashier will put the change due on a plate or tray rather than hand over the money directly to you.

  The more difficult thing has been converting amounts back to $US using changing exchange rates to compare the price of things vs the US standards.  Currently the Euro is 31% greater, meaning every €1 is worth $1.31.  While dealing with a single currency with a fairly similar amount, the challenge becomes even greater when traveling to Hungary, where one Forint is worth .0034 Euros.  Thus 295 Forints = 1 Euro = $1.31 Dollars.  I am glad my prior role did force me to understand the numerous currencies in comparison to USD ($1USD = 19 Czech Korunas = 5.6 Danish Krones = 6.8 Swedish Kronas = .92 Swiss Francs).  At least 17 of the 27 European Union countries are currently using the Euro (Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain), so that has made things somewhat easier.  The UK is a little harder because the amounts are very comparable to NY standards, but then you must include the currency impact and the price is 57% more in USD.  However, most of the time, I prefer to let the credit card company do the conversion for me.  I compare it to a long night out when the next morning you check your credit card balance and realize the damage.

  It will be interesting to see how the currency situation here plays out and the impact on the different economies.  At least it has made travel within the continent easier, even it that means less likely to obtain passport stamps between countries within the EU.