Northlanders with foreign cash are likely to feel it burning a hole in their wallet, as most have to drive to Auckland to get it exchanged into New Zealand dollars.

Westpac is the only bank in the region offering the exchange of foreign currency and only to existing customers.

Travelex, which is recommended by some banks, has its closest stores in Auckland’s Helensville or Albany – a four-hour round-trip from central Whangārei and an even longer journey for those in the Far North.

Banks say a lack of demand caused them to stop offering foreign currency exchange in all their branches, and a local travel agent says it is not a problem for organised travellers.

But Northland residents who have been sent money from overseas relatives, or forgot to exchange their foreign cash at the end of a long journey, are resorting to social media deals to trade their money.

Westpac stopped offering foreign exchange services to non-customers in March 2021, said Westpac NZ consumer banking and wealth GM Mike Norfolk.

“It has allowed us to prioritise serving our own customers and has reduced the risk of fraud and money laundering.”

Westpac customers can exchange foreign cash for New Zealand dollars (NZD) or deposit it into their bank account at any branch, he said.

But customers wanting to withdraw NZD as foreign cash are advised to call first, to ensure the requested currency is available.

Debit and credit cards safe and secure, other banks say

While other banks do not offer foreign currency exchange, most major banks offer visa or debit card options which enable international travellers to make cash withdrawals overseas.

Kiwibank has not exchanged foreign currency at any of its branches since October 2019 due to a drop in demand, said Logan Munro, general manager retail.

“Our Visa debit and credit cards are a safe, secure and convenient way to use your money in New Zealand and overseas, and our customers can use cards overseas to withdraw foreign cash,” he said.

Munro pointed out currency shops are available at international airports for when international visitors arrive.

BNZ partners with Travelex, as well as offering Eftpos and Flexi-debit Visa cards which can be used overseas.

ANZ and ASB also have similar offerings, while Rabobank and The Co-operative Bank do not offer foreign exchange.

Cards are the way to go for international travellers, agent says

Celia Honiss from World Travellers Kerikeri says the lack of foreign currency exchange in Northland is not a big deal for international travellers, due to the range of banking options available.

Most are able to withdraw cash from an ATM when they arrive overseas, plus use their visa or debit card for larger purchases, she said.

Travellers can also use pre-paid currency cards, such as Mastercard’s CashPassport, where up to 10 different currencies can be loaded onto one card.

But Honiss admitted the lack of foreign currency exchange could be a problem for those with money left over after an overseas trip.

“I know it’s frustrating if you’ve got cash left over.

“They could save it for their next holiday or see if they have a friend who is travelling who might want to buy it off you.”

Honiss also recommends anyone with a bit of leftover cash at the end of a holiday spend it at the airport before they depart for home, so they avoid getting stung by exchange fees.