How to Exchange Currency When Travelling Abroad?

How to Convert Currency When Travelling in 2025 (Updated)

Travelling to another country is always exciting. You get to experience new places, food, people, and cultures. But one thing that many travellers find confusing is how to convert currency when traveling or how to exchange foreign currency for the local currency.  This is important because you will need local money for shopping, transport, food, tips, and even emergencies.

If you do not plan your currency exchange properly, you might lose a lot of money due to poor exchange rates, hidden charges. In this blog post, I will explain how you can convert currency in a safe, cost-effective, and simple way when travelling abroad. Whether you are travelling from India, the United States, or anywhere else, this post will help you prepare smartly.

Why Currency Exchange Is Important While Travelling

When you travel abroad, your home currency will not be accepted in most places. Even though credit and debit cards work in many cities, you cannot always rely on them. Some places still prefer cash, such as street vendors, public transport, or small shops in local markets.

Carrying local currency helps you:

• Avoid last-minute stress or overpaying at the airport
• Handle emergency situations
• Buy food, use taxis, and pay small bills easily
• Save money by avoiding high foreign transaction fees

 

Smart Ways to Exchange Currency Before or During Travel

Let’s look at the safest and most cost-effective ways to exchange currency for your trip.

1. Using Your Bank or Credit Union

This is often the best option for where to exchange foreign currency.

If you are in India, banks like HDFC Bank, Axis Bank, SBI, and ICICI offer currency exchange services. In the U.S., where can I exchange foreign currency for U.S. dollars? Try Bank of America, Wells Fargo, or Chase. Some are even banks that exchange foreign currency for free for account holders.

Advantages:

• Banks offer better currency exchange rates than airports or local money changers
• Your money is safe and you avoid fake currency
• Some banks offer home delivery of currency or forex cards

Always place your currency order in advance. Avoid exchanging large amounts at the last minute. Also, carry a passport, visa, and PAN card if you are exchanging above Rs 25,000 in India.

2. Withdrawing Cash from ATMs Abroad

Many travellers prefer withdrawing local currency from ATMs after they land. This is actually a smart choice if your card supports international withdrawals with low fees.

Advantages:

• ATMs usually offer better exchange rates
• You get real-time rates based on the market
• It's safer to limit the amount of cash you carry when flying.

Use a debit card or travel card with no foreign transaction charges. Always choose to withdraw in the local currency, not your home currency, to avoid hidden conversion fees.

Always use ATMs located in trusted areas like banks, malls, or airports. Avoid using random ATMs in isolated areas to stay safe.

3. Using Online Forex Platforms

If you like to plan everything before your trip, online currency exchange platforms are very helpful.

Some examples include:

• BookMyForex (India)
• Wise (formerly TransferWise)
• Currency Exchange International (USA)

Advantages:

• These platforms offer better exchange rates than physical counters
• You can compare rates and order currency from your home
• Some platforms also offer prepaid forex cards or currency home delivery

In India, BookMyForex lets you lock the exchange rate by paying a small booking amount in advance. Use only RBI-approved platforms for safety.

4. Visiting RBI-Licensed Money Changers

If you are travelling from India and want physical cash quickly, you can use RBI-licensed money changers available in cities, especially near airports or tourist spots.

Advantages:

• You do not need a bank account
• Some offer negotiable rates for large amounts
• You can get both foreign currency notes and forex cards

Always compare the rates of two or three different money changers. Choose the one with the lowest markup and transparent charges. Carry your ID proof to complete the exchange. Avoid unlicensed or street-side vendors.

5. Airport Exchange Counters (Use Only in Emergencies)

Airport exchange booths are the most common and most expensive option for foreign currency exchange. The rates are generally poor, and they charge a high commission.

Use this option only if:

• You forgot to exchange money in advance
• You need urgent cash for a taxi or basic food
• The banks or ATMs are closed

Exchange only a small amount at the airport, just enough to manage until you reach your hotel or find a better option. Then use a local bank, ATM, or platform to exchange more.

Should You Use Local Currency or US Dollars While Travelling?

This is a common doubt, especially for Indian and Asian travellers.

Always try to use the local currency of the country you are visiting. It is more widely accepted, and you will get a better value when you pay in local money. If you pay in dollars in countries that accept both, they might return change in the local currency at a poor rate.

However, US dollars are a good backup to carry, especially in countries like Cambodia, Nepal, or some parts of South America, where dollars are accepted in tourist areas.

Use local currency for daily use and carry a few dollars as a backup or emergency reserve.

What Is the Best Way to Carry Money While Travelling?

Use multiple payment options to stay prepared for unexpected situations.

• Keep some local currency for food, transport, tips, and small expenses
• Carry a forex card or prepaid travel card for safety and better control
• Use an international debit or credit card for hotel bookings, shopping, or large payments

Do not carry all your money in one wallet or pocket. Split it across different bags or pouches. Always keep a small amount hidden in a travel belt or safe place.

Inform your bank that you are travelling, especially if you plan to use cards. This helps prevent your card from getting blocked due to suspected fraud.

How to Check the Best Currency Exchange Rates

Use trusted apps or websites to check exchange rates:

• Google Finance
• XE Currency App
• OANDA
• BookMyForex (India)
• Wise.com

Avoid weekends or holidays if possible. Rates tend to change sharply on Mondays when forex markets reopen. It is best to monitor rates for a few days before your trip and plan accordingly.

What to Do with Unused Foreign Currency After the Trip

• If the currency is widely accepted (like US dollars or euros), you can keep it for your next trip
• If the currency is limited (like yen, baht, or rupiah), exchange it back at a bank or money changer
• In India, you can legally keep up to 2,000 US dollars worth of foreign currency with you for future use
• Keep your receipts to make the reverse exchange easier

Some airports have donation boxes for leftover coins or currency. It is a good option if the amount is too small to exchange.

Final Thoughts

Currency exchange might feel boring, but it can affect your entire trip experience. A small mistake can cost you a lot of money or cause unnecessary stress. That is why it is important to plan your money strategy before you travel.

Use banks, online platforms, or ATMs in trusted locations to get the best rates. Avoid airport counters unless there is an emergency. Always carry a mix of cash and cards, and never keep all your money in one place.

By staying alert and planning ahead, you can enjoy your trip without worrying about money exchange issues.

If you found this article helpful, feel free to share it with other travellers or leave a comment with your personal experience. Safe travels.

Click here to use our free Live Currency Converter

Public FAQs: Currency Exchange While Travelling

1. How to convert currency when travelling?

You can convert currency through banks, online platforms, authorised money changers, or ATMs abroad. Compare exchange rates in advance and avoid airport exchanges unless necessary.

2. Where can I exchange foreign currency near me?

You can search for licensed currency exchange shops on Google Maps or check online forex platforms. Banks and RBI-licensed agencies are your best options.

3. What is the best way to exchange money for international travel?

Using your bank, withdrawing from ATMs abroad, or using online platforms are the best methods. Avoid airport kiosks due to poor rates.

4. How to exchange foreign currency to Indian rupees?

Return to an authorised forex dealer, bank, or use an online service like BookMyForex. Keep the exchange receipt from your trip for easy conversion.

5. Does Chase Bank exchange foreign currency?

Yes, Chase Bank exchanges foreign currency for its account holders. You should contact your local branch to know which currencies are available and what charges apply.