Foreign currency exchange dives but major banks stick with it

ASB, BNZ and Westpac are sticking with offering foreign currency despite a decline in usage due to border closures. Photo / file

The border closure has seen a drop in foreign cash buying and selling at the banks but BNZ, Westpac and ASB say they won't be following ANZ in ditching the service.

ANZ NZ - the country's largest bank - announced publicly yesterday that it would stop buying and selling foreign cash from November 13 due to the dive in demand.

"As customers are well-served by other alternatives, including specialist providers and the ability to withdraw local currency from overseas ATMs, we have taken the carefully considered decision to discontinue foreign exchange cash services in our branches," the bank said in a statement.

ANZ is the second major bank to withdraw the service. In November last year Kiwibank stopped offering foreign currency exchange.

A Kiwibank spokeswoman yesterday said it hadn't offered the service since October 31 2019.

"We refer customers with foreign cash requirements to travelex.co.nz."

But other banks are sticking with it for now despite the uncertainty over when New Zealand's border will reopen for travel again.

A BNZ spokesman said with the border closed, foreign cash exchanges had declined.

"Over the last couple of years we've seen a reduction in demand for in-branch foreign exchange, and lockdown has accelerated that decline.

"But we have no plans to remove the service."

The BNZ spokesman said its customers had increasingly been looking for more flexible options with their foreign currency exchanges, so late last year it removed the overseas ATM fee.

"This means customers can take their cards overseas and then use an ATM in the destination to get the currency they need without paying additional fees or worrying about being organised in advance and taking cash across international borders."

Lex Thornton, ASB general manager for banking advice centres said Covid-19 had had a significant impact on customer demand for foreign exchange services as expected.

"However as travel bubbles open up, we expect demand for foreign exchange services will lift again. We will continue to provide foreign exchange services to our customers."

A Westpac spokesman said: "Demand for foreign exchange services in our retail branches has reduced in recent months due to border closures. However, at this stage we aren't making any changes to the services we provide."