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Do you use computer version, phone/mobile version or the Paypal app? (I am not sure if PayPal app got the function of currency convertion, the app lack of features so I would recommend always use the web browser).
I would advice using the computer/desktop or mobile version. On both you go to the menu and then to Wallet.
Once you are at wallet, if on the mobile version you need to click on PayPal balance first.
Once that is, both on desktop and mobile version you will have 3 dots over each other to the right of the amount on the currency.
So if you have an amount in currency of EUR, you press the 3 dots right of the amount and there you should have an "exchange" button.
New policy, read the link below for your country.
You won't be able to anything with a 'balance' until you verify your id etc.