Chief executive officer of the Australian Travel Industry Association (AITA), Dean Long, says he always travels with at least a small amount of his destination’s currency.
“Fundamentally, there’s always a need to have a little bit of cash… I find that’s just helpful if you’ve got to take a cab or you tip someone,” he tells Forbes Advisor Australia.
If you want the best rates, it also pays to do some research before your departure.
Swapping your currency at a retail outlet before you travel is best, Travel Money Group general manager, Scott McCullough, says.
“It will save you a notable amount when compared to doing it at a bank or waiting until you’re at your destination and getting caught in the classic tourist trap of paying more than you should, or worst case, getting scammed,” he says.
Avoid Changing Money at the Airport
One of the most expensive places to exchange currency is at an airport kiosk or currency exchange counter in the departure lounge. McCullough says it can be three to four times more expensive at the airport than a foreign currency retail store.
“It’s definitely worthwhile taking the time to exchange your cash in advance, or load currency onto a travel card,” he says.
Our currency conversion calculator can help you work out roughly how much currency you could be getting for your Aussie dollars, to help you make comparisons between providers before you go ahead with your transaction.
A Note on the Big Four Banks
You can order foreign currency through your bank or the Post Office but depending on where the bank branch is, and the currency you want, they may have to order the currency in, and the rates are unlikely to be that competitive.
“They hold such limited stock, which often means you’re left waiting days or even weeks for your cash to arrive,” McCullough says.
And many banks require you to be an existing customer before they will exchange currency for you.
“There will be a portion of the community that will want to go to a bank and get [foreign] cash from those institutions, but the reality is, there are other enterprises around with far more competitive rates that can still get the cash for you,” Long says.
