Living as an expat is already a great challenge. But living as an expat in one of the dual currency countries? These people are financial heroes. In this article, you’ll learn how living in countries with dual currency affects your budget, how to avoid currency conversion fees and much more.
What are dual currency countries?
How FX fees affect you
Understanding the real cost of foreign exchange
Dual currency pitfalls expats should avoid
How to save money on FX as an expat
How to send money home
FAQ — countries with dual currency
What are dual currency countries?
The name speaks for itself. These are countries that use several currencies in daily life. It can be:
- Official: Two or more currencies are legally used in shops, companies, by the government, etc.
- Unofficial: The government didn't propose the use of the second currency, but everyone has it anyway.
Some examples of countries with dual currency:
- Zimbabwe
- Panama
- Caribbean Netherlands
- Cambodia
- Lebanon
- China
With the EU, the situation is different. While most members use euro, some stick to their local currencies: Bulgaria, the Czech Republic, Denmark, Hungary, Poland, Romania, and Sweden. They accept euros in tourist areas and for business contracts (rarely), but other than that, everyone uses local currencies. Even though they are not official countries with dual currency, some patterns remain and may affect your expenses — in the form of foreign exchange charges or during ATM withdrawals as currency conversion fees.
More about ATMs:
- 🇪🇺 ATMs in Europe.
- 🇳🇴 ATMs in Norway.
- 🇮🇪 ATMs in Ireland.
- 🇬🇧 ATMs in the UK.
- 🇸🇪 ATMs in Sweden.
How FX fees affect you
Let’s imagine we’re living in Budapest and are being paid in euros as digital nomads. Then, foreign exchange charges will haunt us everywhere:
- When our salary is credited to a Hungarian bank account.
- While paying rent and utility bills in forints.
- Shopping with a foreign card.
- Sending money home.
- ATM charges.
Foreign exchange charges are applied every time you pay in the local currency. It’s costly and eats a great part of your budget. Even if you find the best FX rate, the losses are never zero.
Understanding the real cost of foreign exchange
There are two main costs to consider in currency conversion:
Exchange rate margin
Banks and services often offer a markup on the mid-market exchange rate (the rate you see on Google). That margin is usually hidden.
For example, if the mid-market rate is:
- 1 EUR = 3.00 Georgian lari
Your service or bank might offer:
- 1 EUR = 2.80 laris
That difference per euro is their profit. Over hundreds or thousands of euros, this adds up fast.
Service fees
These are the visible charges for converting or sending money. Common fees include:
- ATM withdrawal fees.
- Bank international transfer charges.
- Credit card FX fees (often 1–3%).
- Flat fees on remittances.
Some banks also charge additional “cross-border” fees if a transaction is made in a different currency than your account.
Dual currency pitfalls expats should avoid
Let’s look at some real-life examples of how FX issues can affect expats in countries with dual currency systems:
Double conversion
An Indian expat in Denmark withdraws money from an Indian-based INR account. Some ATMs charge in EUR, but local purchases are priced in DKK. Result: INR → EUR → DKK, with fees at each stage. How much are currency conversion fees in this case? It depends on the bank; usually, it's 1-3% per withdrawal + the conversion fees.
Dynamic сurrency сonversion (DCC)
When using a card abroad, you're often offered to pay in your home currency. This seems convenient, but it usually comes with a worse exchange rate. Always choose to pay in the local currency to avoid currency conversion fees.
Rent in another currency
In Hungary, landlords expect you to pay in HUF. If you're paid in euros as a digital nomad or freelancer and convert to forints monthly, you’ll lose a portion of your salary every time. Here, the currency conversion fees are inevitable, unless you have a HUF income.
Currency conversion fees are everywhere and we have to deal with it. It’s early to give up, though. There are some tips on how to avoid currency conversion fees.
How to save money on FX as an expat
Don’t let unnecessary fees tighten your budget. Here are proven currency tricks:
Use multi-currency banking
Multi-currency banking is a tool for holding, sending, and managing multiple currencies in one account. When someone sends you EUR — it will be stored in EUR, when they transfer DKK/HUF or any other currency — it’ll not be converted if you have a special account.
Multi-currency banking services include:
- Traditional banks. Contact your financial institution directly to learn about the fees and account terms.
- Digital banks like Wise and Revolut. If you search ‘What are the best online banking solutions for multi-currency transactions?’ These two will definitely pop up.
- Online services for sending money abroad, like Profee. It’s used to transfer funds at one of the best FX rates. It’s not a bank, so you can’t hold your money there.
These platforms are one of the best online banking solutions for multi-currency transactions 2025. Especially in countries with dual currency.
Gift for our readers: a promo code READPROMO for a 0% fee transfer. Use it until September 30th, 2025.
Get local bank accounts
In some cases, opening a local account can help you avoid currency conversion fees when receiving or spending money. Just make sure to compare fees and requirements. Traditional options are secure, but if you need convenience and speed, try looking for the best online banking solutions for multi-currency transactions 2025.
Use FX-friendly cards
- Choose debit or credit cards designed for international use. Look for:
- No foreign transaction fees
- The best FX rate
- Free overseas ATM withdrawals (or reimbursement)
Know the mid-market rate
Always check the current mid-market rate before making conversions. This helps you compare providers and spot poor offers. You can use Google for it.
Time your transfers
Exchange rates fluctuate daily. Suppose you're planning a large transfer (e.g., for a car, deposit, or tuition); timing matters. Track trends or set alerts to catch a favourable rate — financial planning actually works.
How to send money home
If you have moved to the EU or UK and opened a local bank account, you can easily send money back home. To share a part of your salary with family or buy something in your home country, use Profee. This service helps to avoid poor rates and high fees.
Save money
Profee has market-beating rates, which are sometimes even better than the mid-rates you see on Google. How much are currency conversion fees? Little to no. Get yourself a sweet treat instead of overpaying.
Stay safe
We know that security is the main concern for every expat. Scams are everywhere now; even dating apps are not safe to use! Let us assure you that Profee protects your funds. The service complies with international standards, has an official licence and is trusted by over 800,000 customers globally. If you have a question, real people in customer support will find a way to resolve it.
Take it easy
Here’s how your transfer experience will look: you sit in your cosy room, having a drink prepared. You grab your phone, quickly download the Profee app and register in minutes. After that, you set up the transfer in several taps and send money right away. See? Peaceful, pleasant and quick task.
FAQ — countries with dual currency
Which country has a dual currency?
Officially, there are several dual currency countries: China, Panama, Namibia, Zimbabwe, Cambodia and others.
What are the best online banking solutions for multi-currency transactions?
The choice of the best online banking solutions for multi-currency transactions 2025 depends on your needs:
- Wise, Revolut or N26 for daily banking.
- Payoneer and PayPal for businesses.
- Profee for sending money back home.
How to avoid currency exchange fees?
As a traveller, you can get a card that has no foreign transaction fees, stay within your bank network or pay in cash when travelling.
As an expat, open a local bank account and receive payments in the local currency.
How to get the best foreign exchange rate?
Know the mid-rate to spot poor offers. Compare services before sending money — they have different markups and fees. Monitor the currency dynamics and send money when the rate is getting better. You can find the graph on the Profee website or in the app.
Can I hold foreign currency in my bank account?
Yes, you can open a special multi-currency bank account.
Is it worth having a foreign currency account?
Yes, if you live in a country with dual currency or have foreign income. It’ll reduce the number of conversions, so you’ll lose less money.
