American Express Ceasing Australian Business FX Operations
(12 May 2023 – Australia) American Express is rationalising its Australian corporate foreign exchange (FX) operations as part of a methodical downscale of the group’s non-United States based FX operations.
AMEX is decommissioning its Foreign Exchange International Payments (FXIP) offering for the majority of business customers by the end of Q4 2023. The group has made the decision to discontinue FX services for corporates beyond its domestic US market. The decision follows significant foreign exchange volatility off the back of aggressive monetary policy tightening from the world’s central banks.
AMEX highlighted the risks of hawkish interest rate settings on FXIP earnings in its 2022 annual report, warning “adverse currency fluctuations and foreign exchange controls could decrease earnings we receive from our international operations and impact our capital”. The group will continue processing AccessLine payments to domestic suppliers for the immediate future.
“We will contact our customers in Australia to guide them through the local implications of these changes and provide support as they transition to alternative providers” a spokesperson said to InvestorDaily.