This seems to be how Paypal does it,it will convert your foreign currency into the currency of your country before it sends to your local bank.
Could it be if it sends foreign currency to your bank,your bank wil charge a fee,I know this is how it is done in Japan.
The Jananese bank will charge a fee if incoming wire is in a foreign currency,then it will convert that currency into Yen.
Canadian Paypal members who have Canadian bank account in US currency,can ask Paypal to transfer their US$ Paypal fund to that bank account ,and do whatever they please themselves,whether keep it as US dollars or convert to Canadian dollars.
