Does Paypal Automatically Convert Currency on Payment?

arx9v
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Contributor

I have a Paypal account linked with a savings account using my bank's debit card and have 0 balance on it. The currency in my savings account is in my local country's currency (Php). Now the online merchant that offers paypal as a method lists the price as $USD.  Will paypal automatically convert the funds needed funds to pay for the item to the currency requested by the online merchant? Are there any fees associated with it? 

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