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As outlined in our bank fees guide, exchanging cash usually comes with the highest charges. So we only exchange cash when we genuinely need it. Most of the time, withdrawing money using a low-fee debit card is cheaper and more flexible. It also means we’re not walking around with large amounts of cash.Â
If we’re arriving somewhere new and expect to need cash immediately – for example, for transport – we’ll exchange just enough for the first 24–48 hours. After that, we avoid committing to exchange rates too early. Instead, we keep most of our money in our accounts and access it as needed. We use our Wise account to hold multiple currencies and withdraw locally when it makes sense, rather than exchanging everything upfront.
If we’re moving money between accounts or countries, we’ll often compare Wise with XE Money Transfer before deciding. XE is particularly useful when we want to move larger amounts and secure a better rate.
If you do choose to exchange cash before you travel, ordering online and collecting it at the airport is usually cheaper than exchanging at the airport or at your bank. Just make sure you don’t pay by credit card, as this may be treated as a cash advance with additional fees and interest.
If your provider doesn’t offer the currency you need, you may be given United States Dollars or Euros instead. Be aware that this can result in two conversions, increasing the total cost.
If you still have foreign currency when you leave a destination, it’s usually best to exchange it before you depart—either back into your home currency or into the currency of your next destination. That said, we try to avoid this situation altogether.
Because we manage most of our money digitally – tracking it through PocketSmith and holding it in multi-currency accounts – we rarely need to carry large amounts of cash. If we do have leftover notes, we either:
- convert them into United States Dollars (to replenish our emergency funds), or
- convert them into the currency of our next destination
Coins are rarely exchangeable, so we donate them.
What do we do?
We carry a small amount of emergency cash (usually less than USD100 per person), but we rely primarily on accessing cash as needed. When we arrive in a new country, we withdraw cash from an ATM – usually at the airport or near our accommodation. If that’s not possible, we will exchange a small amount of our emergency funds to get us through.
Before leaving a country, we convert any remaining notes into either United States Dollars or the currency of our next destination, whichever offers better value. Behind the scenes, we track everything through PocketSmith. It gives us visibility across currencies and accounts, helping us make better decisions about when to convert, withdraw, or transfer money. Foreign exchange can feel complicated—but once you have a system, it becomes much easier to manage.
How do you normally exchange cash for your overseas trip?
I wrote this travel finance article based on my own experience. If you, like most people, travel overseas and exchange cash for foreign currency and have something to add, please feel free to contact me.
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