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Most ships operate a Bureau de Change onboard, where foreign currency can be purchased or sold subject to local currency restrictions.
All major currencies will be stocked based on the countries visited. For British cruise lines (namely Cunard, Fred Olsen, Ocean Village, P&O Cruises and Swan Hellenic) currency transactions are converted through sterling, and for American cruise lines (namely Celebrity Cruises, Norwegian Cruise Line, Princess Cruises, Royal Caribbean International) currency transactions are converted through US dollars. Costa Cruises currency transactions are converted through euros.
Most cruise lines charge a premium either on the commission charge or exchange rates for the convenience of using the onboard service. However, Fred Olsen do not charge commission on the transaction and state they set competitive exchange rates.
Depending on the port of call you are visiting, it is often easy to find a Bank, ATM machine or Bureau de Change very near the pier, at more competitive rates.