Aussie exporters or importers already know trading overseas isn’t always as easy as sending an invoice and waiting for the cash to roll in. For the rest of us, there’s something you might not realise: currency clampdowns in countries like China, India and Vietnam are costing Australian businesses hundreds of millions.

A new report from UK-based money comparison site Top Money Compare found that 59 per cent of the 41 countries they analysed now impose currency controls. That’s a lot of red tape between you and your money. So, are there ways to get around it?

How FX is hitting Aussie business owners

In markets with the tightest currency rules, banks can quietly skim as much as eight per cent off a payment through foreign exchange (FX) spreads. On a $2,000 transfer, that’s $160 gone, without a ‘fee’ showing up anywhere. Add to that the delays in getting paid while overseas clients sit in approval queues, the paperwork to prove who you’re paying and why, and the risk your funds get blocked, frozen or converted at a rate that makes your eyes water.

Australia’s floating dollar means we can send and receive money without those headaches. However, the same doesn’t apply to some of our biggest trading partners. China, worth a whopping $196 billion in trade with Australia, has strict quotas, extra taxes and hefty disclosure requirements for cross-border payments. India imposes limits on international transactions and requires approvals for certain deals. Even Vietnam and Turkey keep such a tight grip on currency flows that they’ve become hotspots for workarounds.

The crypto connection

When official channels slow down or get too expensive, some businesses turn to unregulated workarounds: peer-to-peer cryptocurrency platforms, stablecoins like Tether, or even old-school underground banking networks.

In countries like Turkey and Vietnam, up to 14 per cent of cross-border transfers are leaking through these channels.

It might seem like a good idea to speed up payments and dodge the FX pain, but Russell Gous from Top Money Compare has a warning for businesses looking to cut corners.

“What looks like a shortcut can often lead to something far more costly.”

“Scams, compliance breaches and even cybercrime can be an unexpected consequence. Not exactly the kind of “surprise” you want in your accounts.”

With Scam Awareness Week coming up from 25–31 August, it’s the perfect time to shine a light on this hidden risk. Last year, Aussie businesses reported $29.5 million lost to scams. Add in these sneaky FX costs and risky workarounds, and the total financial hit could be far higher.

So how can you keep your business and money safe?

There are ways to trade with countries that have currency controls without losing your shirt. Gous says it comes down to being prepared and choosing your partners wisely. He offers four suggestions for businesses.

1. Stick with licensed, regulated providers that show you the real exchange rate upfront and are ASIC-regulated in Australia.
2. Use business-grade treasury tools like multi-currency accounts and forward contracts to lock in rates and smooth out costs.
3. Know your corridors. If you’re dealing with countries like China or India, factor the extra time, cost and paperwork into your contracts and cash flow forecasts.
4. Think twice about crypto or P2P workarounds unless you fully understand the risks.

Australia’s open currency regime is one of our strengths, but when your overseas trading partners have strict controls, the costs can creep in quietly and bite hard. It might be tempting to find a shortcut, but Gous says the safest bet is still to play it straight, keep your compliance tight, and protect your cash flow from unexpected leaks.

Want to check which countries have tight currency controls? You can see the full Top Money Compare country-by-country FX control map here.

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