Where to change money

First of all you won't need cash for meals etc. in Iceland (unless your card has a fee on each use) - card are extremely widespread in Iceland.
In Copenhagen you can easily get AUD to ISK in any of the large exchande shops (cheapest are the YELLOW signes named Forex - big one at the central station ) - those other ones on main steet or in the CPH airport are COSTLY -but exchanging AUD into DKK into ISK means that you will loose maybe 5% on each transaction (+ one fee ) - the "loss" will be more or less the same on USD or GBP.

Getting some cash on your card in Keflavik in a ATM is CHEAP (only the fixed or pct-fee + maybe 1.5% rate loss - all determined by your card issuer) - alternatively exchange the AUD/USD or GBP - but only one type - in the bank in Keflavik airport - there will only be one loss on rate and it will probably be lower!!!

BTW - the Forex chain I talk about is also in Sweden: 8 shops/banks in Malmö alone.
BUT still - wait util in Reykjavik/Keflavik airport and avoid changing cash unless you are glad to get rid of the USD/GBP

In my experience if you change currency A into currency B in country C, they usually try and charge you a double commission. It's silly, but the person at the till is following a script and daren't depart from it. So whilst it does make sense to convert left over foreign monies into the next one you need, you have to do it in the country of one of those currencies to get a sensible exchange. You can probably google what rate you can get for AUD cash in Iceland. But as Bjoern says, plastic in an ATM is the best way to get a good exchange rate. There are ATMs at the airport.

Thanks for your advice. I'll have a chat to my bank but last time I relied on getting cash from ATMs whilst away I ran up quite a hefty bill for foreign withdrawals and exchange rates. I used the ATM about 10 to 12 times taking the maximum allowed each time and the fees were a few hundred dollars.

Unless I can do better than that I think I'll take the pounds & US dollars as I don't anticipate using either of those currencies within the next 12 months and I got them both when the exchange rate was more favourable.

It makes sense to change them in Reykjavik to avoid the double change.

Thanks
Robyn

I'll have a chat to my bank but last time I relied on getting cash from ATMs whilst away I ran up quite a hefty bill for foreign withdrawals and exchange rates. I used the ATM about 10 to 12 times taking the maximum allowed each time and the fees were a few hundred dollars.

You need a new bank. Most people find their banks let them take money from ATMs much cheaper than changing cash.

A difference often NOT novices is that your CC statement often will show that there has been a - say 1.25% - correction to the interbank rate (+ a small fee). When you change cash you are told the fee if any, but not the 5-10% ( in some countries even higher ) "difference" between the interbank rate and the selling rate. Therefore many do not realize how much cash exchange costs.

I used the ATM about 10 to 12 times taking the maximum allowed each time and the fees were a few hundred dollars.

It occurs to me that you could have been using a credit card rather than a debit card in which case they charge you interest, and it isn't unknown for banks to have horrible rules about that.

I used my Aus atm card at KEF to withdraw some Kr, with an Aus bank fee of around A$4. I used CC for most things, but small shopholders were appreciative of cash, particularly after saying 'don't need a receipt' :)
Make sure your CC doesn't charge exchange fees for purchases (28 Degrees MC is good)

I found that I could have done my entire 12 day stay in Iceland with CCs without using Krona a single time. I got $200 equivalent at the airport, and ended up having to spend it at the end back in Reykjavik at the end.