How do I get the best exchange rate in Bali?

Have a travel question that needs answering? Ask our expert Simon Calder

Bali, famous for its rice terraces, is a major tourist destination. However, buying currency outside the country doesn't offer great rates (Shutterstock)

Q We’re going to Bali but are getting conflicting advice about how to get money there. Buy in advance, take sterling, travellers cheques or withdraw cash from ATMs?

Name withheld

A The Indonesian rupiah is regarded as an exotic currency by the foreign-exchange business, even though the country is the fourth-largest in the world by population. Buying Indonesian currency anywhere outside the country is likely to give you a dismal exchange rate.

Better to take hard currency and change when you arrive. Pounds are acceptable, as are euros, but US or Australian dollars are better regarded and generally secure the best rates.

Shop around for the best deal when you arrive – even at bureaux de change on the same street, you can find sharp differences in rates.

Travellers cheques are regarded in Indonesia and elsewhere as an archaic form of payment. ATMs are worth bearing in mind as an emergency source, but charges are likely to be high.

Every day, our travel correspondent, Simon Calder, tackles a reader's question. Just email yours to s@hols.tv or tweet @simoncalder