Today, provisions that are to reduce banking arbitrariness in converting installments into USD come into force.
In turn, from July, all holders of foreign currency loans will be able to repay their obligations not only in USD but also in the currency bought in exchange offices.
Buy-sell rates are much better for the customer
There, the buy-sell rates are much better for the customer about those offered by banks. But the exchange office owners warn that the exchange rate may increase significantly when there are much more willing.
Thanks to the S2 recommendation of the Polish Financial Supervision Authority coming into force today, banks will have to standardize their exchange rates. This means that they will not be able to use other exchange rates, e.g. for international transfers, others for loans, and others for customers buying currencies at branches.
Until now, banks used to convert the more expensive currency to people with mortgage loans because they had no choice but to use the offer of a given institution. On the other hand, external customers who bought currencies in branches bought them cheaper – says Katarzyna Biela from the Polish Financial Supervision Authority. The commission decided to end this dishonest practice.
The recommendation also imposes on banks the obligation to inform clients intending to take out a mortgage about all costs related to its servicing, including the amount of spread charged.
Until now, the client often did not know how high the commission is charged by a financial institution, i.e. how much does it cost, euro or dollar. And the spreads in banks, the differences between the amount of purchase and sale of currency, are definitely higher than in exchange offices.
For the USD, they range from less than 14 USD at Good Finance Bank to almost 40 USD at Honest Bank – according to Cole’s analysis prepared for us. Meanwhile, in exchange offices, there are from 4 USD – e.g. in Katowice Europe to 13 USD in Silvana in Elbląg.
That is why the GFIC wants to enable clients to purchase currencies and repay loans with them. Currently, only a few banks allow it. But in the latter you need to have a currency account from which GFIC draws USD every month – this solution only pays for people who earn in USD.
Repayment of loans
Repayment of loans, e.g. with franchises bought independently, will be enabled by the second part of the S2 recommendation of financial supervision, which will come into force in July.
The problem is that the contract can only be changed once. And this means that if in July we decided to buy the currency ourselves, then we will have to do it every month until the end of debt repayment. For example, a person who has a loan for 25 years must take care of foreign currency 300 times alone. In addition, no one can guarantee that she will actually save on it.
The currency exchange owners themselves have doubts that such low prices can be maintained. – If many clients come to us for s, we may have a problem with meeting their needs.
Price will increase significantly
It is very difficult to get USD currency because few Poles work in Switzerland. We even have more Czech crowns – says the owner of the Baksa exchange office from Krakow. – If we have to buy s at banks for customers, then their price will increase significantly and it is not known whether borrowers will accept it – he adds.
Currently has a dozen or so willing to use USD currency. They take 200-300 s a month. In total, 5,000 are sufficient to meet their needs. s, i.e. as much as the currency exchange bureau is already acquiring from sellers. – I’ve been working in the industry for 20 years, if you have to, we’ll find s for clients.
But I can’t guarantee that we will keep prices low if we have to pay dearly ourselves, says an employee of one of the bureaux de change in the center of the capital.
He believes that there will be no such problem with obtaining USD or dollars, because we have large emigration in the eurozone countries and in the US.
However, at the same time the spread on this currency is much higher. Although there are USD-changers that only sell for 3-4 USD for their sale, the vast majority take about 20 USD and more.
Exchange representatives estimate that although customers will be buying much more s from July than they are now, it will still be too few (at least several million needed) for a single exchange office to negotiate lower margins in banks. But customers have already come up with a solution to this problem. –
We already have 10,000 volunteers who need a total of 5 million a month – says Sean Cole, founder of the social portal Good Credit. The portal gathers people who repay loans in USD currency. They want to buy and negotiate prices together.
The Good Finance foundation will start in May, which will also help clients in debt with foreign currencies (including USD and dollars) in disputes with banks. This is currently the value of USD mortgage loans