I must place a disclaimer on this blog titled Foreign Exchange Rates Comparison before going on: I am researching the daily bank exchange rates of the various big four Australian banks posted on their respective websites each morning. These rates are typically the base rate which the bank will work off dependent on if you are buying cash or paying foreign currency via telegraphic transfer.
This foreign exchange rates comparison samples the bank exchange rates of four banks to see how they differ from bank to bank. Hopefully, this will make it a little clearer on how bank exchange rates differ from the market rate. The purpose of this would then be to revisit in a week’s time and see what rates the various banks are offering and how much they differ.
The benefit for you of this foreign exchange rates comparison is that if you are going to be buying USD you will want the highest AUD/USD rate possible and if selling USD the lowest AUD/USD rate possible. My readers will then be able to gain an understanding of which bank is most competitive for there particular circumstances and move to this bank or alternatively ask for better pricing using this experiment as leverage. As I have mentioned previously using knowledge as leverage with your bank is particularly beneficial and if you are an importer or exporter this should put you a step in the right direction.
For this foreign exchange rates comparison the four banks whose bank exchange rates i’ll be analysing are:
National Australia Bank (NAB)
Westpac Banking Corporation (WBC)
Australian and New Zealand Banking Corporation (ANZ)
Commonwealth Bank of Australia (CBA)
Today 24th May as at 11am current Market Exchange Rates are as follows:
Having now visualized current market rates and which bank’s rates ill be analysing please see below:
If you are a traveller heading to the U.S or Europe you would be best to purchase (you are after the highest rate):
USD in order from WBC at 0.9376, NAB at 0.9370, CBA at 0.9325, ANZ 0.9314
EUR in order from NAB at 0.7342, ANZ at 0.7335, WBC at 0.7327, CBA at 0.7320
If you are an importer of goods into Australia you would be best to purchase your (you are after the highest rate):
USD in order from WBC at 0.9402, NAB at 0.9349, CBA at 0.9336, ANZ at 0.9316
EUR in order from WBC at 0.7388, NAB at 0.7349, ANZ at 0.7336, CBA at 0.7332
If you are an exporter of goods, you would be best to sell (note – you are selling at the lowest rate possible) your:
USD in order to ANZ at 1.0026, NAB at 1.0029, WBC at 1.0039, CBA at 1.0069
EUR in order to ANZ at 0.8035, WBC at 0.8036, NAB at 0.8043, CBA at 0.8044
What this foreign exchange rates comparison tells me at this initial stage, is that all bank exchange rates here are a long way off where the market is trading. It also tell’s me that overall WBC and NAB appear to be more competitive on exchange rates. I will re-visit this in a week to further analyse.