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From what I gather, you have to be billed in USD currency on international purchases in order to pay with PayPal Credit, specifically, PayPal's virtual 'non-plastic card' credit line.
If its a physical PayPal credit card, you should be able to select it as the funding source during checkout since they would be linked to your PayPal account. You may also set the PayPal physical credit card as the preferred payment method by going to Account Settings (gear icon) > Payments > Online Purchases (and for In-store just under it). You may also select you should be doing the currency conversion during checkout as well.
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