Understanding How Money Works in the Czech Republic
asdasasdWhen traveling or living in different countries around the world it will be common to deal with different currencies. Currencies are the standardized units of barter people use to exchange for goods and services. In the Czech Republic the citizens there use what is known as the Czech Crown.
Like in any country around the world you will have two forms of currency. These are coins and bills or banknotes. Electronic currency is also available in the form of credit and debit cards but these work off the standard currency system.
The coins or crowns as they are called come in several different denominations. They are:
When looking at the banknotes, or paper money, you will have similar denominations. These include the following:
When looking at these currencies the first question we have to ask ourselves is; “What does this mean in US Dollars or Euros or even currencies of different countries. With the world market constantly changing and inflation rates increasing, values decreasing the exact conversion rates are suspect. To learn the value of your specific currency in Czech Crowns you will want to visit a bank, exchange office or the front desk of your local hotel.
When exchanging your currency know that many places will charge you a transaction fee up to 2%. When exchanging currency you may be tempted to do an exchange on the street with a local. This is not a good idea and may result in receiving counterfeit currency or incorrect value. There are however places that will offer you a 0% conversion fee but these are usually found in places of business.
When dealing with currency one option is to only use your credit card. In many places in the Czech Republic a Visa or Master Card are accepted. The conversion is usually handled by the credit card company so determining the conversion rate isn’t needed.
When it comes to the prices of things you will find that in many areas around the Czech Republic to be comparable to the prices in your native country. For example if you were to travel to a general restaurant in a village or town you could expect to spend 120 Czech Crowns for a decent lunch. In US currency this would translated roughly into $6 or $7 dollars. For a decent dinner you would look at around $20.00 in US currency which would be approximately 500 crowns.
When receiving a service such as being served in a restaurant, bar or hotel it is customary to tip your server. This is a common practice all over the world but in the Czech Republic one is expected to round up the price of their bill instead of tipping a specific percentage like it is done in the States. In the states it is customary to tip your server 20% of your overall bill. In some cases the tip is automatically calculated by the establishment, determined by the total number of guests or a minimum charges.
In the Czech Republic however tips are based on rounding up your total. For example if your bill were 116 crowns it would be acceptable to round your tip up to over 130 or 135 crowns.
When it comes to tipping it is expected and encouraged. However. there no specific laws that state you have to tip. In fact if your service was unsatisfactory you have the right to refuse to tip. This encourages servers and others to give the best possible service since tipping reflects the overall.
When it comes to money, prices and tipping it is a universal standard that exists all over the world. Once you familiarize yourself with the currency and how prices work, the conversions from your currency into Czech Crowns everything will fall into place.