In Reply to: Good Q; I plan to tip US$; a good idea? posted by wood'n el lay on Sunday, 4. April 1999 at 14:53 Bali Time:
For changing dollars the exchange places have a different rate depending on the denomination of the note (the rate being much lower for smaller notes). At the bank they will charge something like 20% to deposit any note less than $50 into a dollar savings account. If I were you I'd take $100 dollar bills and change them at the best rate then tip in Rupiah otherwise the money changers will gain more than anyone. From my experience most locals were not interested in small denomination foreign currency.
As for the amount, I'm not suggesting you should be tight with your money but try not to undermine the worthwhile jobs done away from tourists such as teaching and nursing by giving huge tips for minor services. This just pushes the smarter Balinese away from the more worthwhile jobs through financial necessity.