Henry, a real estate developer, had acquired expertise in the selection of lucrative sites to build residential apartment dwellings.

He had little significant knowledge of financing the development. In 2006 he wanted to finance a new project. He went to see Kerry the branch manager of the Sydney Bank (the Bank) to ask for a loan. Henry was concerned about the high level of interest that was payable on the loan. Kerry told him that a loan could be obtained in a foreign currency at a lower rate of interest and arranged for Henry to meet wade, the Banks international business officer. Wade told Henry of the advantage of foreign currency loans. Wade said that the main benefit to Henry of borrowing in a foreign currency was the significantly lower interest rates offered on such overseas loans compared with higher prevailing interest rates in Australia. Wade also told Henry that it was good business for Henry to borrow offshore and that there was no substantial risk in an offshore loan. He mentioned that some borrowers took out insurance to protect themselves, but in his view it was not necessary and probably. 2006 Henry agreed to borrow the equivalent of AUD49000, 000 in an overseas currency from the Bank. Although the interest rate was considerably lower than the rate chargeable in Australia on an equivalent loan in Australian dollars, the severe depreciation of the Australian dollar against the overseas currency during the period of the loan has resulted in Henry now being required to repay in dollar terms almost one third than the original loan. He wishes to commence legal proceedings against the Bank to recover his loss.
AUD49000,000 ,, ,