Dollar savings at BCA

Dollar savings at BCA

From Kompas

I decided to deposit my U.S. currency savings in the BCA Dollar Savings Program at the Setiabudi Branch of BCA Bank in Bandung because I hoped that this savings program could protect my dollars against rupiah devaluation. I was also lured by promises of prizes from the bank.

My hope, however, crashed into pieces when I withdrew my savings.

On Sept. 6, 1997, I withdrew my savings from this U.S. dollar account. The cashier in charge told me that I was required to take my money in rupiah at the then prevailing exchange rate for selling and then turn the amount into U.S. dollars at the going exchange rate for buying. I refused to do the transaction.

Finally, I was taken to meet the manager, Lili Halim. I was told that this procedure was in line with an internal instruction issued by the head office of BCA Bank. I was also told that owing to the uncertain economic condition, this instruction, considered an internal secret, must not be made public.

The balance in my account that day stood at US$3,146.24. According to the standing procedure, I was required to convert the amount into rupiah and sell it to BCA at the going rate of Rp 2,850/$1. If I wished to have the amount in U.S. dollars, then I had to buy my own U.S. dollars back at the prevailing rate of Rp 3,050/$1.

I finally decided to withdraw my savings in rupiah because at that time the bank had run out of its U.S. dollar stock. The loss I had to sustain by taking rupiah was Rp 629,248 or about $206.31 (my original $3,146.24 was now only $2,939.93).

This transaction was unusual because I kept an account in U.S. dollars. Usually, I will be subject only to a 0.5 percent administration charge, which will be smaller in value than the loss I had to sustain because of this foreign exchange transaction. So, if a customer withdraws $100,000 under BCA's procedure, he will have to sustain a loss of Rp 20,000,000, reducing his savings to only $83,443 (a drop of 16.5 percent, which is far higher than the going interest rate for U.S. dollar savings).

Considering this situation, I think it will be better to keep my U.S. dollars at home. In this way, my greenbacks will not be affected by a monetary exchange condition. As I have pointed out earlier, U.S. dollar savings can also be subject to depreciation. It is really regrettable that the present national monetary condition has prompted the bank to issue a policy which is obviously very disadvantageous to customers.

Bank Indonesia must therefore issue a banking regulation which takes into account the interests of its customers. If what is practiced by BCA can go on unchecked, customers will no longer have any trust in bank savings in any currencies.

MOCH TAUFIQ F.

Bandung, West Java