How to Exchange Cash or Withdraw Cash in Hong Kong
I am going to Hong Kong for 4 days. There are fewer opportunities to use cash in Hong Kong, but I thought it would be better to have about 3,000 yen on hand. I researched how to get cash in Hong Kong Dollars from Japanese Yen, the best way to exchange money, and what the exchange rate would be.
- Exchanging cash in Japan: The rate is definitely quite bad, so it is not an option for me.
- Exchanging cash in Hong Kong: Currency exchange shops at Chung King Mansion is famous for its good rate. (I remember staying at a cheap hotel at Chung King Mansion a long time ago.) It would be nice if we could stop by while we were around there, but going all the way would be a waste of time and transportation fare.
If we exchange currency at banks, banks may charge a fixed fee per transaction, so it may not be suitable for small amounts such as several thousand yen. I don’t know if they will accept 1,000 yen bills. A few decades ago, when I was traveling here and there, they would only exchange 10,000 yen bills, or the exchange rate was not good if we exchange 1,000 yen bills. I wonder how it is now. - Sony Bank WALLET： A cash card with Visa debit called Sony Bank WALLET that I made a long time ago. It allows me to withdraw money directly from my Sony Bank Japanese Yen account using overseas ATMs. The following costs are incurred.
1.76% of the amount withdrawn
Fees charged by local ATMs - Credit card cashing: Cash withdrawal at overseas ATMs by credit cards. With my Sumitomo Mitsui Credit Card, the following costs seem to occur (I didn’t check for accuracy)
・Annual interest rate of 18%. It says, “The card usage amount till 15th of the closing date of each month and the interest till the payment date will be automatically withdrawn from the payment account on the 10th of the following month.”
If you cash on the 16th, it will take approximately 55 days until the 10th of the month after the next, which is the payment date. So 18% x (55 days/365 days) = 2.71%. However, there seems to be a method of early repayment, so if I return home after a four-day trip and repay the loan within a few days, I may need to pay only 18% x (10 days / 365 days) = 0.49%.
・ATM fees. Handling amount of 10,000 yen or less: 110 yen / Over 10,000 yen: 220 yen (including consumption tax, etc.).
Checked the Exchange Rate on the Web
Looking at the exchange rate on June 10, 2023, the rate was as follows. I guessed some handling fees and calculated how much it would cost to exchange/sell 10,000 yen or withdraw/buy 1,000 HKD. (I cannot guarantee that this calculation is really correct.)
| Method | 場所 | Yen/HKD | HKD/1000 yen | Handling Fee/ Interest | Amount for 10,000 yen（with fees and interest deducted） | Cost for 1000 HKD |
| Cash Exchange in Hong Kong | Chung King Mansion – Kin Shing Money Exchange | 17.86 | 56.00 | perhaps 0 | 560 HKD | 17,857 yen |
| Chung King Mansion – Pacific Exchange | 17.79 | 56.20 | perhaps 0 | 562 HKD | 17,793 yen | |
| 香港上海銀行 (HSBC) |
18.04 | 55.42 | perhaps 50 HKD or so per exchange | 504.2 HKD *1 | 18,946 yen *1 | |
| 創興銀行 (Chong Hing Bank) |
17.94 | 55.74 | perhaps 50 HKD or so per exchange | 507.2 HKD *1 | 18,837 yen *1 | |
| Withdraw from ATM in Hong Kong | Sony Bank WALLET | 17.88 | 55.92 | 1.79% per withdraw + local ATM handling fee | 529.19 HKD *2 | 18,560 yen *2 |
| Sumitomo Mitsui Credit Card (VISA) | 17.71 | 56.47 | Interest rate 18% a year + ATM handling fee 110 yen | 555.70 HKD *3 | 17,906 yen *3 | |
| Sumitomo Mitsui Credit Card (Master) | 17.71 | 56.48 | Interest rate 18% a year + ATM handling fee 110 yen | 555.80 HKD *3 | 17,903 yen *3 |
*1 Calculated with handling fee of $50, although I’m not sure
*2 Calculated with the local ATM handling fee of $20, although I’m not sure
*3 Calculated the interest for 10 days, assuming that I will pay it back soon after returning to Japan
Withdrawals at ATMs are made in local currency. Most likely it should not be possible to specify foreing currency at ATMs like an amount of 10,000 yen and should be possible only to speciffy HKD amount such as 500 HKD or 1,000HKD. So I put the last column in the table above which shows the amount of yen I would have to pay if I withdrew 1,000 HKD.
Conclusion of this Article
As a result, the exchange rate at Chungking Mansions turned out to be the best. However, credit card cashing is second best, and there is not much difference if I only withdraw about 1000HKD.
When I go to Hong Kong this time, I will withdraw cash by credit card cashing from local ATMs, which requires less time and effort in Hong Kong. I would like to save interest by making early repayment after returning home.
