Local Currency, Exchange Rates and Travel Money Tips
Understand the currency used at your destination, compare exchange rates, learn how to use cash and cards abroad, avoid unnecessary fees and make smarter decisions with your holiday money.
Why Understanding Currency Matters
Currency can have a surprisingly large effect on the cost of a holiday. The price shown on a menu, hotel booking, taxi receipt or attraction ticket may initially look cheap or expensive simply because you are unfamiliar with the local currency.
Learning a few basics before you travel can help you understand prices, choose the right payment method, recognise unnecessary conversion charges and keep better control of your holiday budget.
Exchange rates are constantly changing. The rate shown online is also not necessarily the exact rate you will receive from your bank, card provider, ATM or currency exchange provider.
Live Currency Converter
Enter an amount, select the currencies and click Get Latest Rate. The converter requests the latest available reference rate from the Frankfurter exchange-rate API.
Understanding Local Currency
Currency Code
Most currencies have a three-letter ISO code. For example, GBP is the British Pound, EUR is the Euro, USD is the US Dollar and TRY is the Turkish Lira.
Currency Symbol
Currency symbols can sometimes look similar. A symbol alone is not always enough to identify a currency, so checking the three-letter code can prevent confusion.
Exchange Rate
The exchange rate tells you how much of one currency is equivalent to another currency at a particular rate and time.
Cash or Card: Which Is Better?
Most travellers benefit from using a mixture of payment methods rather than relying entirely on either cash or cards.
Advantages of Cards
- Convenient for hotels and restaurants.
- Useful for larger purchases.
- Reduces the need to carry large amounts of cash.
- Contactless payments may be available.
- Transactions can be easier to track.
Advantages of Cash
- Useful for markets and small businesses.
- Helpful where card machines are unavailable.
- Useful for tips and small purchases.
- Can provide a backup if a card is declined.
- Useful in areas with unreliable connectivity.
Best Approach
Carry a sensible amount of local cash while keeping a secure card available for larger purchases and emergencies.
Check your bank's charges before travelling so you understand the potential cost of using your card abroad.
Where Should You Exchange Money?
| Option | What To Consider | Travel Tip |
|---|---|---|
| Bank | May offer competitive rates but check fees. | Compare the total amount you receive. |
| ATM | Convenient but your bank and ATM operator may charge fees. | Use reputable bank ATMs. |
| Airport Exchange | Convenient but rates can sometimes be less attractive. | Avoid exchanging large amounts without comparing rates. |
| Exchange Bureau | Rates and fees vary considerably. | Check the final amount you will receive. |
| Card Payment | Your provider determines its conversion method and fees. | Check your card's foreign transaction policy. |
Using ATMs Abroad
Use Reputable ATMs
Where possible, use ATMs operated by recognised banks rather than unfamiliar machines in isolated locations.
Check the Fee
Some ATMs display an additional withdrawal charge. Read the screen carefully before confirming.
Check the Conversion
An ATM may ask whether you want to be charged in your home currency. Compare the offered conversion before accepting.
Dynamic Currency Conversion
Dynamic Currency Conversion, commonly called DCC, is an option that can appear when using an international card at an ATM or card terminal.
The machine or merchant may offer to convert the transaction into your home currency instead of charging you in the local currency.
Look at the exchange rate and total amount carefully. If you are unsure, check your card provider's foreign currency policy before travelling.
Foreign Transaction Fees
A currency exchange rate is only part of the cost of spending money abroad. Your bank or card provider may charge additional fees.
Foreign Transaction Fee
Some cards charge a percentage or fixed fee when you make a purchase in another currency.
Cash Withdrawal Fee
Your card provider may charge for withdrawing cash overseas, while the ATM operator may also impose a separate fee.
Exchange Rate Margin
The rate used for a transaction may differ from the reference rate displayed by a currency converter.
Popular Holiday Currency Guide
Turkey
Currency: Turkish Lira (TRY). Cards are common in many tourist areas, while cash can remain useful for markets, small businesses and some local services.
Spain
Currency: Euro (EUR). Cards and contactless payments are widely used. Keeping a small amount of euros is still sensible.
France
Currency: Euro (EUR). Cards are widely accepted, especially in cities and tourist areas.
Greece
Currency: Euro (EUR). Cards are commonly accepted, although cash can still be useful for smaller purchases.
Italy
Currency: Euro (EUR). Cards are widely used, particularly in hotels, restaurants and major attractions.
Portugal
Currency: Euro (EUR). Cards are common in tourist destinations, restaurants and accommodation.
USA
Currency: US Dollar (USD). Cards are widely accepted and cash remains useful for smaller purchases and tipping.
Dubai and UAE
Currency: UAE Dirham (AED). Cards are widely accepted in Dubai, shopping centres, hotels and many restaurants.
Thailand
Currency: Thai Baht (THB). Cash remains particularly useful for markets, smaller businesses and some local services.
Japan
Currency: Japanese Yen (JPY). Card acceptance is widespread, but carrying some yen remains useful.
Australia
Currency: Australian Dollar (AUD). Cards and contactless payments are widely used.
Switzerland
Currency: Swiss Franc (CHF). Cards are common, but check whether a quoted price is in CHF or another currency.
How to Budget Your Holiday Money
A simple daily spending plan can make it much easier to control your holiday budget.
Accommodation
Consider accommodation separately from your everyday spending money. Check whether breakfast, taxes, resort fees or other charges are included.
Food and Drinks
Estimate breakfast, lunch, dinner, drinks and snacks. Prices can vary dramatically between tourist areas and local neighbourhoods.
Transport
Include airport transfers, public transport, taxis, car hire, fuel and parking where relevant.
Activities
Budget separately for attractions, excursions, tours, entertainment and day trips.
Shopping
Set yourself a separate shopping allowance so souvenirs do not unexpectedly consume your main travel budget.
Emergency Money
Keep a sensible emergency reserve separate from your everyday spending money.
How to Read Foreign Prices
One of the easiest ways to overspend abroad is to mentally convert every price incorrectly. Before travelling, practise converting a few common amounts into your home currency.
For example, if you are travelling from the UK, knowing roughly what 10, 20, 50 and 100 units of the destination currency represent can make everyday decisions much easier.
Always remember that your mental conversion is only an estimate. The actual amount charged to your card may be different because of the exchange rate and fees used by your payment provider.
Currency Safety and Scam Awareness
Count Your Change
When paying with cash, check the change you receive before leaving the counter.
Check the Notes
Become familiar with the appearance and denominations of local banknotes before travelling.
Protect Your PIN
Cover the keypad when entering your PIN and avoid using ATMs that look damaged or suspicious.
Keep Backups
Consider having more than one payment method so that a lost or declined card does not leave you without access to money.
Watch Your Wallet
Be especially careful in crowded transport areas, markets and busy tourist locations.
Keep Emergency Details
Know how to contact your bank or card provider if your card is lost, stolen or blocked.
What Should You Do With Leftover Currency?
It is normal to have some local coins and notes left at the end of a trip. Depending on the currency, you may be able to spend them before leaving, exchange eligible notes or keep a small amount for a future visit.
Coins can be particularly difficult to exchange, so consider using small denominations for final purchases where appropriate.
Holiday Currency Checklist
Currency Frequently Asked Questions
Make Holiday Planning Easier With HolidayIn4U
Use the currency converter to understand your travel budget, then explore the rest of HolidayIn4U for destination information, travel advice and useful holiday tools.
