Ulster Bank has decided to cut charges to customers exchanging euro-zone currencies. From May 16th, the bank will cut its charge from £2 (€2.5) plus 2.25 per cent to 1 per cent per transaction. From the beginning of October, it will abolish charges on such transactions.

The bank said the move was voluntary. Along with its main Irish rivals and banks in six other EU member-states, Ulster Bank has been under investigation by the European Commission over allegations of tariff fixing. It said last night it had not colluded in any way with other banks over setting charges which it said were fully transparent and approved by the director of consumer affairs, Ms Carmel Foley. The bank has notified the European Commission of its move.