CIMB optimistic currency exchange unit to grow to $496mn

Month-on-month transaction growth of 11% has been achieved by the bank since it introduced foreign currency dispenser machines.

CIMB Bank expects its bureau de change (BDC) or currency exchange business turnover to reach between RM1.4bil ($462.73 million) and RM1.5bil ($495.59 million) by year’s end supported by its foreign currency dispenser (FCD) services.

Head of retail financial services Peter England said last year the figure was about RM1.2bil ($396.63 million) compared with RM600mil ($198.31 million) in 2007.

“Since the introduction of the FCD machines in August last year, the bank has recorded a healthy month-on-month transaction growth of 11%.

“We expect higher transaction growth over time given the benefits of this service.

“The bank expects the usage of FCD services to increase as the rates for foreign currencies are lower compared with those offered by other banks and most money changers and the cost of setting up these machines is lower and cost savings can be passed on to consumers,’’ he said at a press briefing after a prize presentation to winners of the “Change & Win” contest.

The investment for setting up the two FCD machines at an outlet costs about RM100,000 ($33.034).

Each machine is capable of dispensing four types of foreign currencies.

View the full story in The Malaysian Star.