Thursday, September 18, 2008

Poor conversion rate for Foreign Currency

Dear Mr.Tan,
I gave instructions that on maturity of my FD to convert GBP to NZ$. I got a poor exchange rate. I checked the conversion on the Internet and, in my opinion, a fair value is 2.3% higher.

I made numerous calls to the bank to ask how their rate was derived. They have not replied to me. As guideline. I understand that direct conversion GBP to NZ$ will give a higher figure than converting GBP to SGD and then changing to NZD.

So I want to get redress from MAS. Who shall I address to?

REPLY

Read these pages:
http://tankinlian.blogspot.com/2008/09/monetary-authority-of-singapore.htmlhttp://www.moneysense.gov.sg/contact_us/Consumer_Portal_Contact_Us.html

You probably have to take the following steps:

1. Write to CEO of the bank
2. File a complaint with FiDREC.
3. At last stage, approach MAS
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2 comments:

David said...

Any law to specify what is a "poor" exchange rate and is a crime? If there isn't, then the bank though may be acting unethically or unfairly but not illegally hence it will get away with it. I think even if MAS want to act, it will simply be overwhelmed. So be prepared for such hazards if you want to venture beyond safe investments.

September 18, 2008 8:14 PM
Falcon said...

This is the reason why I decided to stop my NZ dollar deposit. Even though the interest rate appeared high, the banks surreptitiously lowered the rate without the need to inform the depositor. Coupled with the "unfair" exchange rate, you are hit twice as you need to first convert S$ to the foreign currency and vice versa, you are left with virtually nothing if exchange rate is unchanged and much worse if it goes down. So in other words, it is the usual heads they win, tails they still win and you lose!!!

September 19, 2008 1:56 AM

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