Hard times in foreign exchange
An Auckland-based foreign currency company is struggling to stay open as border restrictions continue.
Lotus Foreign Exchange country manager Nada Ramanathan said revenue had fallen 90 per cent since borders were closed because of Covid-19.
‘‘It’s been very difficult. We rely on foreign currency exchange, which is not at the level we hoped. It’s been very difficult to pay the rent. It’s pretty bad,’’ Ramanathan said.
Although Lotus had continued its remittance service, this had not been enough to keep the lights on, he said.
Lotus had 17 kiosks nationwide, and with the help of the wage subsidy it had not fired staff or closed any of its stores yet.
‘‘So far we haven’t had to let go of staff. There’re no signs of opening anytime soon, we’re holding off until April, hopefully once the vaccine arrives our borders will open again.’’
The country’s biggest bank, ANZ, stopped offering foreign currency services last because of a lack of demand.
But other major banks had continued to offer the service.
ASB banking advice centre general manager Lex Thornton said the bank expected demand for foreign exchange services would lift again once border restrictions eased.
A TSB bank spokeswoman said it was offering foreign exchange services for Australia, the US and England only.
She said some branches might not be able to provide currency exchange due to limited foreign cash supply. year
Lotus Foreign Exchange country manager
Massey University banking Professor David Tripe said demand for foreign cash by overseas travellers had been decreasing even before Covid-19.
Travellers generally used debit cards or travel cards loaded with local currencies.
While companies offering foreign cash exchange were struggling because of Covid-19, those that offered services online without bricks and mortar stores were doing well, he said.
For instance, British online cash transfer service TransferWise did better than ever last year.
TransferWise country manager Tim Cameron said part of the growth was due to older customers becoming comfortable using the service.
‘‘We rely on foreign currency exchange, which is not at the level we hoped.’’ Nada Ramanathan