Exchange rates

SELXT contains exchange rates for all the countries listed and can be used to convert the value of an overseas currency into New Zealand dollars. The exchange rates are average exchange rates for all countries that are notified to MSD, by its nominated bank for the period of the 16th of one month to the 15th of the following month.

There are social security agencies in 4 countries which independently notify MSD of the exchange rates used to pay their pensions into New Zealand. These exchanges rates are compared to the average exchange rates supplied by the nominated bank for the same country and the most advantageous rate for the client is entered into SELXT.

To convert overseas currency to New Zealand currency, take the foreign currency and multiply it by the New Zealand exchange rate.

A client is receiving weekly payments of £150.00 per week in pounds sterling. The exchange rate for the United Kingdom pound showing in SELXT screen is 1.8564 (as at 20 March 2018).

• 150.00 (sterling) x 1.85640 (NZ) = $278.46 (NZ)

Clients may query the exchange rate as banks express their rates in a different way than SWIFTT does. The bank would express 1.85640 as 0.53870. This is calculated by dividing 1 by 1.85640 = 0.53870.

The bank calculates the exchange rate for overseas currency by dividing the overseas pension amount by the exchange rate, instead of multiplying it, as in the SWIFTT example above. When comparing the calculations using the two exchange rates there may be a small difference in the NZ dollar amounts.

• £150.00 (sterling) divided by 0.53870 = $278.45 (NZ)

In these examples the difference in the exchange rate is one cent.