Is it possible to convert a foreign currencies into Australian dollar in banks located in Australia(Sydney).?

As like any bank around the world, of course you can. I live in Australia and I have seen currency booths in Brisbane (queen street), so I'm assuming you can in any major city in Australia, e.g. Sydney

And if not any where in Australia, as I know someone that went to there local bank (country town) to exchange thai in to aus. hope this help's mate :)

Banks in Australia will only convert the major currencies (the ones listed on the table at exchange booths). Other countries (any african currency apart from Sth Africa, European currencies apart from Euro and pound) you will be hard pressed finding any place to convert them. I had some Polish Zoltas that I had to wait until my next UK trip to convert.

L. Yes they do, and they charge. But the banks do not charge as much as the currency outlets you see like at the airport.

If you are traveling to Australia, take my advice, use Visa, Am-ex, Master Card, even Interact Debit. Only carry minimal currency.

Banks do this, there may be a conversion fee added to it (I was charged $3 here in the USA by my bank converting Euros to dollars) but yes, it's do-able. They check the current listings for the day to see what the actual rate factor is.

If you're with paypal then that can automatically convert money people send to you, but if you have the actual cash in hand, any bank that is large enough can do the conversion for you.

Any branch of any bank in Australia will do this, and they will charge you a few dollars as a fee.