Money

Currency

The euro (€), the new single European currency, became the official currency in Spain and 11 other participating countries on January 1, 1999. After an overlapping period of just over 3 years, the old currency, the Spanish peseta, disappeared into history on March 1, 2002, and the euro became the sole currency in use. Exchange rates of participating countries were subsequently locked into a common currency fluctuating against the dollar. Unfortunately for U.S. visitors, in the last couple of years, the euro has gone from basically a one-to-one exchange rate with the dollar to a much stronger position. (For more details on the euro, check out www.europa.eu.int/euro.)

Much noise was made about the "rounding off" of prices upon the introduction of the euro, not just in Spain, but throughout Europe. Basically this meant that, if the normal price of a coffee in pesetas came out at say 81 eurocents, after January 1, 2002, it was hiked up to an "even" euro. This practice was especially widespread in the hospitality sector and anyone who has visited the country in the days of the peseta will notice a considerable difference in prices in bars and restaurants. If you're from an expensive city in the U.S., you will probably find a lot of the prices comparable, but if you're not used to large-city prices, you could have a bit of sticker shock.

Spain is, therefore, no longer a budget destination and Barcelona itself is often quoted as being the most expensive city in the country (in studies based on everything from the cost of renting an apartment to the price of a loaf of bread). Everything is relative, however, and compared with other major European cities such as London or Paris, it can still be a bargain.

The old adage "You get what you pay for" is as true here as any other European city, up to a point. Reflecting a modern, cosmopolitan city that has to cater all budgets, you can choose to go either up- or downmarket in your choice of dining and accommodations. Often you will find that the most memorable experience is not wholly dependent on the price tag. Staying away from the tourist traps and seeking out family-run restaurants will generally make you more inclined to hand over your credit card with a smile when the check comes. In a climate of stiff competition (especially from the holiday apartment sector) hotels are usually clean and comfortable. Trains are very reasonably priced, fast, and on time, and most service personnel treat you with respect. And of course, once you move beyond Barcelona and into the rural areas you will find that the price of things (particularly hotels and restaurants) drops noticeably.

In Spain, many prices for children -- generally defined as ages 6 to 17 -- are lower than for adults. Fees for children under 6 are generally waived.

For American Readers At the euro's inception, the U.S. dollar and the euro traded on par (that is, $1 approximately equaled 1€). But in recent years the euro has gained strength against the dollar and in converting prices to U.S. dollars, I used the current conversion rate of 1€=$1.25. For up-to-the minute exchange rates between the euro and the dollar, check the currency converter website www.xe.com/ucc.

For British Readers At this writing, £1 equals approximately US$1.85, and trades at 1.45 euros. These were the rates of exchange used to calculate the values in the table below.

Exchange rates are more favorable at the point of arrival. Nevertheless, it's often helpful to exchange at least some money before going abroad. Currency and traveler's checks (for which you'll receive a better rate than cash) can be changed at all principal airports, though standing in line at the cambio (exchange bureau) at Barcelona's airport could make you miss the next bus leaving for downtown.

Before leaving, therefore, check with any of your local American Express or Thomas Cook offices or major banks. Or order euros in advance from the following: American Express (tel. 800/221-7282; www.americanexpress.com), Thomas Cook (tel. 800/223-7373; www.thomascook.com), or Capital for Foreign Exchange (tel. 888/842-0880).

When you get to Barcelona, it's best to exchange currency or traveler's checks at a bank, not a cambio, hotel, or shop. Note the rates and ask about commission fees; it can sometimes pay to shop around and ask the right questions.

Many Barcelona hotels don't accept dollar- or pound-denominated checks; those that do will almost certainly charge for the conversion. In some cases, they'll accept countersigned traveler's checks or a credit card, but if you're prepaying a deposit on hotel reservations, it's cheaper and easier to pay with a check drawn on a Spanish bank.

This can be arranged by a large commercial bank or by a specialist such as Ruesch International, 700 11th St. NW, 4th Floor, Washington, DC 20001-4507 (tel. 800/424-2923; www.ruesch.com), which performs a wide variety of conversion-related tasks, usually for only $5 to $15 per transaction.

If you need a check payable in euros, call Ruesch's toll-free number, describe what you need, and note the transaction number given to you. Mail your dollar-denominated personal check (payable to Ruesch International) to the address above. Upon receiving this, the company will mail a check denominated in euros for the financial equivalent, minus the transaction fee. The company can also help you with many different kinds of wire transfers and conversions of VAT (value-added tax, known as IVA in Spain) refund checks, and also will mail brochures and information packets on request. Brits can contact Ruesch International Ltd., Marble Arch Tower, 14 Floor, 55 Bryanston St., London W14 7AA, England (tel. 0207/563-3300).

ATMs

The easiest and best way to get cash away from home is from an ATM (automated teller machine), sometimes referred to as a "cash machine," or a "cashpoint." In Spain only four-digit numbers are valid so be sure to change any five- or six-digit PINs you may have to a four-digit number before you go.

The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks span the globe; look at the back of your bank card to see which network you're on, then call or check online for ATM locations at your destination. Be sure you know your personal identification number (PIN) and daily withdrawal limit before you depart. Note: Remember that many banks impose a fee every time you use a card at another bank's ATM, and that fee can be higher for international transactions (up to $5 or more) than for domestic ones (where they're rarely more than $2). In addition, the bank from which you withdraw cash may charge its own fee. For international withdrawal fees, ask your bank.

Credit Cards

Credit cards are another safe way to carry money. They also provide a convenient record of all your expenses, and they generally offer relatively good exchange rates. You can withdraw cash advances from your credit cards at banks or ATMs, provided you know your PIN. Keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time. Also, note that many banks now assess a 1% to 3% "transaction fee" on all charges you incur abroad (whether you're using the local currency or your native currency).

Traveler's Checks

Traveler's checks are accepted in Spain at banks, travel agencies, hotels, and some shops, and you can buy them at most banks before you leave.

They are offered in denominations of $20, $50, $100, $500, and sometimes $1,000. Generally, you'll pay a service charge ranging from 1% to 4%.

The most popular traveler's checks are offered by American Express (tel. 800/807-6233 or 800/221-7282 for card holders -- this number accepts collect calls, offers service in several foreign languages, and exempts Amex gold and platinum cardholders from the 1% fee); Visa (tel. 800/732-1322) -- AAA members can obtain Visa checks for a $9.95 fee (for checks up to $1,500) at most AAA offices or by calling tel. 866/339-3378; and MasterCard (tel. 800/223-9920).

American Express, Thomas Cook, Visa, and MasterCard offer foreign currency traveler's checks, which are useful if you're traveling to one country, or to the euro zone; they're accepted at locations where dollar checks may not be.

If you carry traveler's checks, keep a record of their serial numbers separate from your checks in the event that they are stolen or lost. You'll get a refund faster if you know the numbers.