How does currency work in Xero

Xero has a built in function where it converts currency for us

Here is a Xero article explaining how Xero works.

It uses Xe.com data.

In summary you can:

1. Add as many currencies as you like
2. Transact in different currencies (invoices, bills, bank accounts)
3. Run reports in different currencies (PL, BS etc)

How to convert a manual journal to AUD

What Xero can't do is convert a manual journal from a foreign currency into AUD.