I refer to the letter and Wharf Rat reply on the difference between Customs and Bank exchange rates published in FTW dated 11 June 1999.
Although I am no fundi on the exchange rate situation referred to, the following might be a logical explanation for the whole scenario.
It is possible that Customs gets the rate from the Reserve Bank, but we should remember that this rate is obtained once a day and utilised throughout that day in order to simplify operations.
The Bank rate is updated continuously due to the fact that losses can be incurred, thus causing the bank rates to change constantly during the business day. A certain margin of profit-taking is also linked to the rates obtained from the Reserve Bank by the different banks, that results in the different banks offering different exchange rates.
K Ganser, Optima Hydraulics, Paarden Eiland
Copyright Now Media (Pty) Ltd
No article may be reproduced without the written permission of the editor
To respond to this article send your email to joyo@nowmedia.co.za
