Retaining leftover foreign currency after returning from a trip might seem trivial, but it actually offers a range of surprising benefits. Many travellers find that holding onto these funds can save them time and money, while also providing convenience and a sense of security. Recent studies highlight how Australians are increasingly opting to keep their foreign cash, even amidst rising cost-of-living pressures. Whether for practical travel needs or as a thoughtful gift, leftover currency has more value than many realise, opening up creative ways to make the most of what’s often overlooked.
Why Keep Leftover Foreign Currency After Travel?
Retaining leftover currency after travelling abroad offers a range of benefits that can help save money, make travel easier, and even increase financial security. An Accor study from October 2024 found some reasons why holding onto these funds might be a smart decision, with 1,001 respondents.
The study found that 14 per cent of Australians who returned home from a overseas vacation carried as much as $300 in foreign currency while 34 per cent still have the equivalent of $49. The estimated amount in loose foreign currency simply stashed at home was tallied at $1.04 billion.
The current cost-of-living crisis is not a hindrance to Australians deciding to go out – Accor found that 59 per cent of Australians have booked overseas getaways in the past 12 months and when tallied by age, the 18-34 segment was strong at 71 per cent.
Future Travel Plans
For those who travel frequently, especially to a particular country, keeping foreign currency can save time and exchange fees on future trips. Having local currency on hand means you can immediately pay for essentials like transport, meals, or tips without needing to find an ATM or currency exchange counter at your destination.
The Accor study acknowledged this, with 97 per cent of Australians having a small amount of local currency at hand even if they brought along cashless travel cards or a credit card. Forty-three per cent pay by cash to avoid international transaction fees you usually incur from card swipes or to tip locals. When it comes to preferences for cash purchases, 73 per cent of Australians do it for small expenses, 68 per cent buy food and drink, and 60 per cent spend hard cash on local items such as souvenirs.
Investment Potential
Foreign currency values fluctuate over time due to changes in exchange rates. While saving a small amount won’t lead to massive gains, holding onto foreign currency in a stable economy may result in a minor profit if exchanged when rates are favourable. Conversely, it can serve as a safeguard in times of currency devaluation for Aussie travellers abroad.
When it came to preferred currencies brought back, the Accor study found US dollars as king at 37 per cent, with euros a close second at 33 per cent and Singapore dollars at 21 per cent. Twenty percent are comfortable with either a batch of British pounds or NZ dollars.
Gifting and Collecting
Leftover currency can make a thoughtful gift for someone preparing to travel to the same country. Additionally, some people enjoy collecting foreign currency as souvenirs or mementos of their travels. It’s also a great way to introduce children to the concept of money and currency differences worldwide.
This notion is also reflected in the Accor study – 20 per cent enjoy the challenge of collecting foreign money as a souvenir while 26 per cent keep the currency because they do not have time to visit the nearest foreign exchange outlet to convert it into Australian dollars.
Emergency Cash
It’s a good idea to keep a modest reserve of popular currencies like US dollars or euros. If you find yourself in a foreign country or dealing with currency exchange issues, these can serve as emergency cash. The Accor survey notes that 56 per cent of Australian travellers go to a foreign exchange outlet and 38 per cent want to exchange at a local bank.
Certain currencies are widely accepted in places where Australian dollars might not be readily exchanged. However, they must be secured on your person and practice safety measures to prevent theft – some tourists robbed overseas have lost considerable sums of their home currency and the destination currency, plus other currencies they carried.
Managing and Saving Foreign Currency
If you’re planning to hold onto foreign currency, the following are a few practical tips to help preserve its value and maximise its use.
Store It Properly
Keeping foreign notes and coins in a safe, dry place will prevent damage. A dedicated envelope, wallet, or small container helps you keep everything organised and easy to locate when needed for your next trip or an emergency.
Use Multi-Currency Accounts
Several Australian banks now offer multi-currency accounts that allow you to store different foreign currencies. This option is particularly useful for those who travel frequently, as it allows you to keep and use foreign funds without converting them back to AUD, avoiding exchange fees.
Plan Currency Exchange Smartly
If you want to convert foreign currency to Australian dollars, watch exchange rates and plan ahead. Many currency exchange providers allow you to set alerts to notify you of favourable rates. Even small differences in exchange rates can add up if you have a significant amount of foreign currency.
Convert Before Returning
If you only have small amounts of foreign currency, it might be worth converting at the airport before returning to Australia, as many Australian banks and exchange services don’t accept foreign coins. That said, airport exchange rates can be less competitive, so consider this only if you have no other options.
Donate Leftover Currency to Support Domestic Violence Victims
Accor’s Accor Live Limitless (ALL) loyalty programme recently partnered with the Domestic Violence Collective to establish an innovative charity initiative aimed at donating leftover foreign currencies for a good cause. This initiative provides a convenient, meaningful way for travellers returning from abroad with leftover foreign currency to make a real difference in their community.
About the Initiative
The goal is to support victims of domestic violence through financial donations raised from unused foreign currency. Many travellers accumulate small amounts of foreign cash that would be costly or inconvenient to convert, but Accor’s partnership with the Domestic Violence Collective makes it easy to contribute to an impactful cause.
For all of November 2024, the ALL team in Australia will set up “World’s Best Exchange Rate” booths at:
- World Square in Sydney (12-13 November)
- State Library of Victoria in Melbourne (19-20 November)
- Queen Street Mall in Brisbane (28-29 November)
Kiwis can join the action at Movenpick Hotel in Auckland, New Zealand, on 21-22 November.
The object is to donate any loose foreign currency notes and coins to the ALL staff, and then register for a raffle to win some prizes with a combined value of over $200k. The prizes range from free vacation packages at Accor hotels to ALL rewards points.
Why It Matters
Domestic violence is a critical issue in Australia, with many victims needing immediate financial and emotional support to escape dangerous situations. Donations from this programme go towards funding shelters, legal assistance, and other vital resources that provide a safe haven for those affected. Every dollar counts, and donations that may otherwise be forgotten can become a lifeline.
Other Ways to Donate Leftover Currency to Support Charities
While Accor’s initiative is an excellent option, several other Australian charities also accept foreign currency as donations. Organisations such as UNICEF, Oxfam, and various local charities offer similar programmes where foreign currency is converted into AUD to fund charitable activities. Some local currency exchange providers with UNICEF partnerships claim, for example, that an Indian-rupee equivalent of $4 can buy a malaria net treated with insecticide for a vulnerable family in India.
If you have leftover currency that you’d like to donate but aren’t near an Accor hotel, these options can also help make a difference.
Conclusion
Holding onto leftover foreign currency after travel can offer various advantages, from saving on future trips and potentially benefiting from favourable exchange rates to serving as emergency funds. Australians increasingly see the value in retaining foreign cash for convenience, cost savings, and even as a way to give back to the community. With initiatives like Accor’s charity program, which channels unused currency towards supporting domestic violence victims, travellers have the chance to transform leftover currency into meaningful contributions. Whether for practical, sentimental, or charitable reasons, keeping foreign currency can enrich future travel experiences and create positive impacts beyond one’s personal journey.
DISCLAIMER: This article is for informational purposes only and does not reflect official finance advice. The data presented is based on the latest information available at the time of writing. 2 Ezi is not a foreign exchange outlet and has no business interests with any organisation or companies mentioned. Please consult the RBA for official exchange rates.
