The head of the Money Exchange Companies Working Group, which operates under the umbrella of the Dubai Chamber, and the Chairman of the Board of Directors of Al Ansari Exchange, Mohamed Al Ansari, said that the movement of financial transfers increased by 15% during the past two weeks compared to the same period of the previous month, with companies maintaining the fees previously applied and without increasing He explained that the situation is currently very stable with the success of the state in controlling the pandemic.
He added that the "post-Corona world" would show radical changes in the banking sector, especially with the emergence of electronic transfer applications electronically.
Money transfers
In detail, the head of the Money Exchange Companies Working Group, which operates under the umbrella of the Dubai Chamber, and the Chairman of the Board of Directors of Al Ansari Exchange, Mohammed Al Ansari, said that “the movement of remittances has returned to normal during the past and current two months,” stressing that «money transfers witnessed an increase of 15% During the past two weeks compared to the same period in the previous month ».
He added that exchange companies are currently in a stable position compared to the past two months of March and April, which witnessed a significant decrease in the exchange companies business.
Al-Ansari stressed, in a remote dialogue with «Emirates Today», that «limiting working hours and restricting movement as precautionary measures to prevent the outbreak of the new Corona virus (Covid-19), posed a challenge to the business sector, including exchange companies», noting that the precautionary measures increased the The operational cost of exchange firms that invested in sterilization, guidelines, social spacing and other precautionary measures without increasing fees for dealers.
Close the airports
He pointed out that during the past March and April, the situation was unstable due to the closure of airports and the erratic movement of air and tourism, which greatly affected the activity of buying and selling currencies.
He added that the activity of buying and selling currencies represents about 40% of transactions of exchange companies, and that this activity decreased by about 80% due to the interruption of tourism and travel, explaining that the situation is currently very stable with the success of the state's efforts to control the pandemic, as the UAE is moving in the right direction.
Al-Ansari said that the movement of financial transfers witnessed a growth of at least 10% during the month of May compared to last April, pointing out that the transfers witnessed momentum also through phones and smart applications.
Transfer fees
Al-Ansari denied that exchange companies raise the transfer fees, saying that "the customers noticed differences due to the variation in currency rates, but the fees should not be raised, especially in light of the intense competition with the applications that are used in this field and the provision of electronic services." During the coming period, with our expectations of remarkable economic activity and a concrete return to tourism, aviation and travel, as well as the return of economic activity and the availability of new jobs that affect the ability of dealers to deal with exchange companies and transfer funds abroad.
Al-Ansari indicated that the “post-Corona world” will show radical changes in the banking sector, especially with the emergence of electronic transfer applications electronically, warning at the same time that these applications are not subject to central bank control, calling on exchange firms to deal with the future efficiently, and to be at the level Its challenges, it is expected that the fees of the traditional exchange firms will decrease, and some companies may reduce the number of branches or stop opening new branches due to competition with electronic applications.
He said that "the Corona pandemic will change many things, including the trend to deal with mechanization, reduce convergence to the maximum extent and deal with applications," noting that exchange companies have submitted a proposal to the central bank to issue local credit cards that are not subject to major international companies, as they can operate from within UAE only, explaining that these cards will be directed to the middle-income segment of society, in order to enable them to make their purchases without the need to use cash and thus enhance the idea of social separation.
He stated that any individual will be able to own a credit card, and be smart without being approved by international companies, and that they are low fees and suitable for middle income, indicating that the cash movement in the markets is declining, and transactions need security protection, while applying social divergence and reducing the use of cash and giving the opportunity For middle-income people in owning a credit card.
40%
Exchange transactions, acquired by buying and selling currencies.
Expectations of reducing fees for traditional exchange companies and the number of their branches.