Avoid 8 Forex Mistakes for Your Southeast Asia Holiday

Planning a multi-destination Southeast Asia trip means you’ll want to manage your money wisely. Otherwise, a ₹1.5 lakh holiday can quietly become much more expensive if you stumble into common currency exchange pitfalls.

Amit Talwar, CEO of Niyoforex, highlights eight frequent forex mistakes Indian travelers make. Knowing these can help you keep your budget on track and enjoy your adventure without hidden costs.

Don’t Convert Everything at Once

You might be tempted to convert your entire trip budget into a single currency like US dollars. This leads to multiple conversion spreads when you exchange those dollars for local currencies in places like Thailand (Thai Baht), Indonesia (Indonesian Rupiah), or Vietnam (Vietnamese Dong).

Instead of a single bulk conversion, break down your budget by country and day. Using a multi-currency forex card for direct conversions can save you money.

Balance Cash and Card Wisely

Carrying too much or too little cash is a common error. The ideal mix of cash and card changes depending on your destination.

Consider these points for your trip:

For places like Thailand and Bali, cards are generally more accepted. However, in Vietnam and Cambodia, you’ll need more cash for local markets and smaller vendors.

A good rule of thumb is to keep 25-30% of your daily budget in local cash. The rest should be on a forex card, and always keep an emergency reserve on the card too.

Don’t Rely Solely on Indian UPI

While digital payments are popular in India, don’t assume your Indian UPI apps will work everywhere in Southeast Asia. Systems like Indonesia’s QRIS might not be compatible with your apps.

Always have a backup payment method ready to avoid getting stuck.

Avoid Airport Currency Exchanges

Exchanging currency at airport counters is an expensive mistake. These locations often have mark-ups ranging from 3-10%.

It’s smarter to buy your forex 5-7 days before you depart from RBI-authorised dealers, where you can compare rates and get a better deal.

Say No to Dynamic Currency Conversion

When using your card abroad, you might be asked if you want to pay in INR instead of the local currency. This is Dynamic Currency Conversion (DCC), and it can add a hidden 5-7% mark-up to your transaction.

Always choose to pay in the local currency to avoid these extra charges.

Steer Clear of Double Conversions

Buying US dollars for a Southeast Asia trip and then converting them again to local currencies means you’re paying conversion charges twice. This is an unnecessary expense.

Directly convert INR to the local currency you need, or use a multi-currency card for more economical transactions.

Cash Carries Risks

Over-carrying physical cash comes with several risks, including theft or loss. Plus, you might incur additional conversion spreads if you have leftover currency you need to exchange back.

A forex card provides a much safer alternative for carrying emergency funds.

Understand the TCS Rule for High Spenders

If you’re a high spender, be aware of the ₹10 lakh TCS (Tax Collected at Source) rule on LRS remittances. This rule becomes effective from April 1, 2026.

For families, splitting forex purchases across different individuals can help manage this threshold, depending on your total international spending plans.

Travel Smart, Save More

By understanding these common forex mistakes, you can protect your holiday budget. Making informed choices about currency exchange ensures your Southeast Asia adventure remains enjoyable and affordable.