We've passed the six month point before the introduction of the euro and Irish banks are beginning to give some ground in the area of exchange charges.

In the face of a European Commission investigation into alleged price-fixing, Bank of Ireland and AIB last week announced reductions in charges for exchange transactions involving euro currency notes and coins. Last month Ulster Bank cut its charges.

The remaining Irish banks under investigation by the Commission - National Irish Bank (NIB), ACC and the merged Irish Permanent and TSB banks - have yet to lower their charges but announcements are expected from NIB and Irish Permanent.

According to a spokeswoman for NIB, the bank is in discussions with the office of European Competition Commissioner Mr Mario Monti. She said the banks had put a package on the table, similar to what has been offered by the other Irish banks. Irish Permanent is looking at the situation carefully and hopes to be in a position to resolve the matter in the coming weeks, a spokesman said. The bank is expected to move broadly in line with Ulster Bank, AIB and Bank of Ireland.

The voluntary restructuring of charges by the Irish banks reflects the pragmatic approach adopted by the Commission in this investigation. The speedy resolution of the problem now is a better result for consumers rather than having to face hefty fines in a few months. The charges will cease to be relevant when euro notes and coins are in circulation next year.

AIB and Bank of Ireland have reduced their buying and selling charges for euro-zone currencies to 1.5 per cent. Ulster Bank now charges 1 per cent for these transactions. From October 1st, AIB customers will be able to buy eurozone currencies without commission charges up to an equivalent of £1,000 (€1,270) per day. The bank will purchase euro-zone currencies up to a value of £1,000 from account holders without charge from next Monday.

In May, Ulster Bank reduced charges for customers to 1 per cent, with no minimum fee. Most institutions had been charging between 2 and 4 per cent. Ulster Bank will also abolish euro currency charges from October 1st for amounts up to €1,250 (£984).

Also from October 1st, Bank of Ireland will cease to apply its new 1.5 per cent commission rate to customers. The special fixed charge of £2.50 levied on transactions for the exchange of euro-zone cash at Dublin, Cork and Shannon Airports will be abolished from the same date. As a result of these initiatives, the European Commission ended competition proceedings against the banks, which were instigated last July.

A Commission spokeswoman said the investigation of more than 100 banks in seven countries should be concluded by the summer break in August. The majority of the European banks under scrutiny have not taken the opportunity to reduce their euro-zone charges.

Consumers should note that the reduction introduced by the Irish banks do not apply to travellers cheques.