Sir, - I write to express my outrage at the acquiescence of the competition authority, the Central Bank, the Government and the EU authorities in the continued maintenance by the commercial banks of serious obstacles to the free movement of funds in the euro-zone.
The recently-quoted statement by the competition monitor that no business could be expected to operate on a margin of 1 per cent is unbelievably, laughably naive. The banks are trying to take 3 per cent plus of turnover. American Express made a great fortune on the basis of issuing dollar travellers' cheques for 1 per cent. Supermarket chains have made fortunes on 1 per cent of turnover.
There is no case for the banks charging any percentage to interchange euro denominations. The most I would stomach is a flat charge, say #1 per transaction.
The competition regulator lets them away with it, and the Central Bank ignores the spirit of the Maastricht Treaty by providing only the most minimal service possible: they will buy euro denominations at par, but not sell them. If the banks will not be reasonable (and why should they, if not forced?), then the Central Bank should set up a network (say 20) of euro-exchange bureaux. These would be even cheaper and simpler to operate than a typical fleece-the-tourist exchange booth, and would cut the ground from under the commercial banks unless they toe the line.
I understand that some central banks in the euro-zone are providing more extensive exchange services than ours. Why doesn't our bank consider this a priority?
The bottom line is that the currency union just won't work if we allow barriers like the present ones to continue. - Yours, etc., Prof Anthony G. O'Farrell, M.Sc., Ph.D., MRIA,
Kilcock, Co Kildare.