Foreign Exchange

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Category : Foreign Exchange

Date : 21 August, 2015

Status : In Process

Foreign Exchange

Complainant approached the bank to open a Euro denominated account, with the aim of remitting/transferring an amount of GBP78,000.00 into the account. The bank processed the remittance of GBP 78,000.00 and credited the customer’s account. According to the bank’s procedure the funds are initially converted to Botswana Pula (BWP) and subsequently to Euros. The customer had expected a straight conversion to Euro from Pounds and that the bank had to use the middle rate in its conversion. He therefore maintained that by having two conversions the bank had profited twice from a single transaction.

The bank response was quick in this matter as it offered the customer an adjustment using the market (inter-bank) rate, which rate is only applied by banks when transacting foreign exchange between themselves and not with customers. The bank’s action did not constitute acceptance of liability but a gesture of goodwill and good customer relationship. The Banking Adjudicator advised the customer to accept the Banks offer.