How to get money from ATM's with Debit or Credit Cards in the Netherlands
The headline above is based on two things. I will get to the monetary part in a minute. I just want to prepare you that some costs may be much higher now. There was not supposed to be inflation based on the Guilder-Euro changeover. Why is it, then, that the Rijskmuseum went up in price more than 100%? The Queen is setting a bad example, and many other non-discretionary items are higher in price than a simple 2.2f / Euro would suggest.
Now for the monetary part. Being an economist, I love this part. As of March 2003 the guilder is long gone from Holland! Now you have to think of Euros. When I wrote about this in 2001, it cost as little as 84 cents (US) to buy a euro. This means that a 100 Euro hotel room would have cost $84.
Then, last year the euro and dollar reached parity. At that time, a 100 Euro hotel room cost $100 as well.
The situtation is totally reversed now, and I predict it will get worse. As of today, 3/10/2003, it costs $1.10 to buy 1 Euro. That $84 hotel room now costs $110. THAT'S A 30% INCREASE IN THE COST OF TRAVEL for dollar-based travelers.
The only hope for US travelers is that the US economy continies growing while the slide in the European economy drives the Euro back down. Granted, the Euro debuted back in 1999 at $1.14 per Euro, so from that perspective the Euro has only come back nearly to where it started.
After these links you will find my old comments about the exchange rate. I wrote that back in 2001 when the dollar was much stronger. It's a bit of history now...
NO ONE CAN PREDICT THE FUTURE - Updated 6/12/2001
As of Summer 2001, the Euro has been weak against the dollar for more than four years. During the week of 6/6/01, the Euro was as low as $0.84, after hovering at $.90 for some time. This benefits you as a tourist. All European Community currencies are fixed in relation to the Euro, in anticipation of the Euro's retail roolout in 2002. Currently, the exchange rate is about 2.5 guilders to 1 US dollar.
Four years ago you would only get 1.8 guilders for your dollar. In 1995, when I first visited Europe, the exchange rate was only 1.5 guilders to 1 dollar! It was mich more expensive to be a US Dollar-based tourist back then.
This fluctation makes a difference in how far your money goes. Read the Wall Street Journal, and go before the Euro gets strong again. Consider the state of the world as of 6/6/2001: The dollar is stronger than ever in the midst of a subdued US economy. A slowdown is expected in Europe over the next year, led lower by Germany's lower GPD. I lost my crystal ball, but I would expect the dollar will stay strong for two more years. Don't quote me on that.