Tips for Choosing Money Changer Agents
Money changers or also commonly called money changers are one of the businesses that are currently mushrooming around us. The amount of money changer business is usually triggered by regions that have high exchange rate needs for currency exchange. These areas, for example, those close to famous tourist attractions, are locations that are often visited by transnational trade transport vessels or areas where many people work abroad.
How to work the money changer
Despite the large profits, of course this business also requires quite heavy requirements. Because this business is one of the big businesses making most money changers established from the capital of several people. At least a minimum capital of 250 million rupiahs must be met (BI Circular No. 14/15 / DPM). In addition to money in the form of money, other things that need to be prepared before starting a money changer business include:
- The building is a decent place of business
- Adequate equipment such as trimming, money counters, exchange boards, counterfeit money detectors and other supporting equipment.
- Submission of a business license to the Indonesian Central Bank, Bank Indonesia, can be through the head office or the BI representative office.
- Important documents such as company establishment deed, NPWP, certificate not involved in legal cases from the local police and bad credit and other supporting documents.
- Have adequate employees, both those who help money changer management and those who maintain security.
After the application is approved, then the BI will carry out data collection and survey the place and analyze the supporting documents. If all procedures have been carried out, then your money changer business place has become a legal money changer agent.
The advantage of the money changer business is obtained from the difference in the value of the currency exchanged. For example, someone wants to exchange dollars with rupiah. Money changers just buy the dollar at a price lower than the selling price of the exchange rate. The difference is what will become the money changer’s advantage. The advantages of exchanging money at a money changer compared to exchanging at a bank are money changer agents willing to accept even small amounts of money, even if it is only one dollar as long as the difference is the profit they get. Whereas if exchanging at a bank, usually the bank will accept if the money is exchanged in a predetermined amount. Not to mention some administrative procedures that take time. The main key in running this money changer business is the selection of business locations that support and dare to rate good prices.
Tips for choosing a trusted Money Changer agent
- Checking currency values - Before you visit another country, you better check the value of the country’s currency first. You can check it through the internet or ask directly to the money changer agent. The goal is that you can compare and find out how much money you need while in the country.
- Choose a licensed Money Changer – Make sure you choose a money changer that is licensed because usually the official money changer dares to offer high exchange rates. This is also to reduce the risk of fraud or exchange conditions that are not good or damaged.
- Avoid exchanging at the airport or hotel – If you are not forced to, try not to exchange money at the airport or hotel. This is because usually airports and hotels offer lower (more expensive) exchange rates than elsewhere.
- Commission alert – Do not be tempted immediately if you see a high selling value offering board that is installed a money changer agent. This is because usually the agents still impose a high enough commission. Ask first whether the agent is charging a commission for exchange or not.
- Choosing the right time to exchange – Avoid exchanging money in vulnerable times that are close to the time you are traveling so that you can get the best price in the exchange.