PETALING JAYA: Some money changers are taking advantage of the pound sterling’s switch to polymer notes on Oct 1 to shortchange customers with poor exchange rates.
While some money changers offer rates as high as RM4.80 to £1, others were offering as low as RM4 to £1.
Hence, Malaysians are advised to check the exchange rates before proceeding to accept such transactions.
Those who have the £20 and £50 notes are also advised to change them before the end of the month.
The cut-off date to use the paper currency in the UK is Sept 30. The old notes will not be legal tender or accepted anywhere in that country after the date.
Bloomberg reported that UK residents who still have the old notes were advised by the Bank of England to spend the money or deposit it in a bank account.
Some Malaysians may be affected by the ruling as foreign currencies are often kept as a form of investment and in preparation for future travel.
Jessy, 29, a teller at Suka Money Changers Sdn Bhd located in Jalan Bukit Bintang, Kuala Lumpur, said her company has been recommending since last month that customers change the old notes to ringgit.
She said last month, her company bought the paper pound sterling at RM5.21 per £1 but today, it is valued at only RM4.80. She expects the pound to depreciate further closer to the end of the month.
“Many came to us to exchange their money (pounds) since last month, not just because we advised them to do so but also because this could be the last month we accept it,” she told theSun.
At a money changer at Amcorp Mall, the old paper note was traded at RM4.70 per £1, or at the discretion of the teller, depending on how old the notes were.
The lowest rate theSun found being offered was RM4 to £1.
This was from a money changer located in Taipan, Subang Jaya.
A money changer in Subang Parade has even stopped accepting old notes outright, without inspecting them.
It is advisable to telephone a money changer to check whether the company accepts the old notes and the rate it offers, before proceeding to its outlet.
According to Express.co.uk, UK’s new banknotes will feature British mathematician Alan Turing on the £50 notes and British painter JWW Turner on the £20 notes.
From a statement published on the Bank of England’s website, there are over £6 billion worth of £20 notes with British economist Adam Smith on them, and about £8 billion in £50 notes that feature British engineers Matthew Boulton and James Watt that are still in circulation in the UK.
A Bank of England spokesperson said the change is a pivotal development to ensure the durability of the notes, and at the same time to prevent the counterfeiting of the currency.
A spokesperson for the British High Commission in Kuala Lumpur said the best way to change the banknotes would be over the counter at a bank, especially for those with travel plans to the UK at the end of the month.
The banknotes can also be handed to family members or friends who plan to visit the UK this month to ensure they are exchanged for the new ones.
“For those who possess the notes but have no travel plans to the UK, it is recommended that they mail the old notes to the Bank of England, which will deposit the money in your bank account (assuming you have one), provided the bank account can accept pound sterling,” the spokesperson said.
