Australian Competition & Consumer Commission (ACCC) said, easier comparisons now available for foreign currency conversions or FX services. More than half of the 26 well-known online Forex brokers or suppliers have installed online calculators on their websites or upgrade existing ones.
16 June, 2020 | AtoZ Markets – ACCC said when Australians send money to family and friends abroad, they will be able to compare prices through an online calculator. ACCC Chair Rod Sims said, “We do want to see all foreign currency service providers, not just some, lift their game. So that consumers can benefit from greater price transparency and ultimately competition”. He also added:
“We’re very encouraged that many foreign currency suppliers have already made improvements to their online calculators and websites. They make it easier for consumers to shop around when comparing the cost of converting foreign currency”.
Australian consumers purchase more than AUD40 billion in foreign currency annually. ACCC said, competition in the provision of FX services can result in significant savings for consumers, both in aggregate and for individual consumers. Mr Sims said, “it is even more critical during the COVID-19 pandemic, and at a time of growing unemployment globally. Consumers can easily compare fees and other charges when converting currency and sending it to family or friends overseas.
The Guidance on FX Price Disclosure
The ACCC has also published best practice guidance. It addresses the combination of complex price structures and lack of price transparency.
- Limiting consumers ability to realize that they can save hundreds of millions of dollars each year by shopping.
- Making competition difficult for consumers to compare prices offered by different vendors and making informed decisions about FX services.
“If we find that this industry is not adopting our best practice measures or even that businesses are moving away from them, we will work with the Government on further measures to ensure consumers have access to this important information,” Mr Sims said.
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