For most trips today, paying by card is usually the best option (See our guide on Travel Credit & Debit Cards). It’s safer, more convenient, and—if you use the right debit or credit card—often cheaper than carrying and exchanging large amounts of cash. In much of Europe, North America, Australia, and large parts of Asia, you can travel comfortably using cards for almost everything.
However, this isn’t universal. Knowing when cash is still essential—and which currency to carry—can make a big difference to both cost and convenience.
Where cash may not be accepted at all
In some countries, the issue isn’t needing cash, but the opposite. Scandinavian countries such as Sweden, Norway, and Denmark are close to cashless. Many cafés, shops, museums, and even public toilets simply do not accept cash, so relying on physical money can actually leave you stuck. In these places, a contactless card or mobile wallet is essential.
Similarly, in China, cash and foreign cards are increasingly impractical for everyday spending. Most payments are made via Alipay or WeChat Pay, even for taxis, street food, and small purchases. Tourists should set one of these up in advance, linking it to an international card—cash is very much a backup rather than the default.
Where cash is still king
In contrast, large parts of South America, Africa, Southeast Asia, and South Asia remain cash-heavy, particularly outside major cities. Local markets, taxis, small restaurants, and accommodation often prefer or require cash. ATMs are usually available, but they may be unreliable, charge high fees, or limit withdrawals.
A good example is Bolivia, where carrying US dollars can be particularly useful. Due to currency controls and a gap between the official and real exchange rate, exchanging USD locally often gives you a much better rate than changing money before you go or using ATMs. Clean, undamaged dollar notes are important, and smaller denominations are easier to exchange.
Closed currencies and hard-to-buy money
Some countries have closed or restricted currencies, meaning you either can’t buy them outside the country or the rates are very poor. Examples include places like Bolivia, Argentina, Ethiopia, Uzbekistan, and parts of Central Asia.
In these cases, it’s often easier—and better value—to take US dollars and exchange them on arrival rather than trying to source local currency before you leave. Dollars act as a universal fallback and are widely recognised by banks and exchange offices.
When taking US dollars makes sense
If you travel frequently, keeping a small reserve of US dollars can be surprisingly handy. They’re easy to exchange in many countries, useful in emergencies, and accepted (formally or informally) in parts of South America, Central Asia, and Africa.
Many travellers build this reserve by withdrawing cash when visiting the USA—if you use the right card to withdraw them (See our guide on Travel Credit & Debit Cards), or by buying dollars when exchange rates are favourable. This avoids scrambling for cash before a trip or being forced into poor airport exchange rates.
Getting the Best Exchange Rates on Cash
Buying cash in advance—either online or from a high-street provider—almost always gets you a better rate than exchanging at the last minute. Pre-ordering also gives you time to compare providers and lock in a favourable rate, rather than accepting whatever is available when you’re in a rush.
One golden rule: never exchange money at the airport unless it’s an absolute emergency. Airport exchange desks are convenient, but that convenience comes at a cost, with some of the worst rates and highest margins you’ll find. If you do need cash on arrival, it’s usually cheaper to withdraw a small amount from an ATM and then exchange or withdraw more later at local banks or reputable exchange offices.
MoneySavingExpert offer a travel money comparison service, which although doesn’t have universal coverage is often good at identifying places with the best rate.
The smart approach to cash
The most cost-effective strategy for most travellers is:
- Use cards as your default, especially for accommodation, transport, and larger purchases
- Carry some local currency for day-to-day spending where needed
- Take US dollars only where they offer a clear advantage or as an emergency backup
- Avoid carrying large sums unless absolutely necessary
Travelling smarter with money isn’t about choosing cash or card—it’s about knowing which tool works best in each country. A little planning can save you fees, stress, and time on the ground.
Holiday Nerd 