'Bank error in your favour’

Press, 12 September 1987, Page 29

'Bank error in your favour’

NZPA Sydney A private currency trader has been allowed to keep sAust34o,ooo ($NZ394,400) profit he made when a leading Australian bank quoted him an erroneous rate of exchange for the Sri Lankan rupee.

Justice Barry Beach awarded costs to Peter Rogan on Thursday after a court case in which National Australia Bank alleged Rogan had been aware of abnormalities in a quoted rate when he invested $104,000 (5NZ120.640) in Sri Lankan rupees on December 23 last year.

The court heard that National Australia had quoted Rogan a rate of 78.50 rupees per Australian dollar. He bought 8.20 million rupees before selling them to another Australian bank, Commonwealth Bank of Australia, at 18.89 rupees per dollar. A spokesman for National

Australia said the 78.50 rate for the rupees, entered on the exchange rate sheet used in the branch where Rogan changed his money, had been confused with the rate applying to the French Pacific franc.

National Australia claimed Rogan’s profit had been obtained under false pretences. But the judge said he was not convinced Rogan had been aware of the mistake.

Rogan said in evidence he believed the huge discrepancy between the National Australia and Commonwealth Bank rates was due to confusion over a dramatic devaluation of the rupee following political strife in Sri Lanka. The spokesman said the bank was taking legal advice before deciding whether to appeal.