Dealers confirmed that there are significant differences in the exchange rates of currencies through the applications of banks, which raises the total cost of the amounts transferred to their home countries, compared to transferring them through exchange companies.
And they demanded, through "Emirates Today", that currency rates be approached to their actual prices in the market, confirming their desire to deal with banks because of their accounts in them. In their turn, bank experts called for a review of currency exchange rates from one period to another, noting that the banks hedge against currency prices, which is what It makes a big difference in the exchange rate of currencies.
Spreads
A trader with an Islamic bank, Ayman Masoud, said that he noticed when he used the bank's application to transfer funds that the dirham exchange rate against the Egyptian pound did not exceed four pounds, while the exchange rate outside the bank reached 4.29 pounds, which caused him to retract the transfer and resorted to exchange companies .
For his part, the client with a commercial bank, Yasser Ismail, said that he would have preferred to make the transfer process to his home country, Jordan, through his bank account, given the recent measures of staying in homes, in addition to that the transfer through exchange companies requires visiting the branch.
He added that he was surprised that the exchange rate of the Jordanian dinar decreased significantly through the bank, compared to the real price in the market, by up to 3%, and he changed the idea of transferring through the bank.
And the customer with an Islamic bank, Youssef Al-Omeiri, agreed with his counterparts that he had changed the idea of making any transfers through the bank, after he discovered that he would achieve a loss of about 350 dirhams when transferring 5,000 dirhams to Egypt, compared to exchange firms.
Banking hedge
In addition, the banking expert, Amjad Nasr, said that the customer should pay attention to the exchange rate of currencies upon international exchange through banks.
He added that the banks hedge against the exchange rates, which makes a big difference in their exchange rate, especially to the Arab markets, pointing out that the price difference is difficult for the customer to bear, compared to the exchange rates in exchange companies.
He continued: «Banks may be excused for that, as they do not have the advantages that exchange firms that have a wide network of partners around the world enjoy, as well as they send a large number of combined transfers as one, which reduces the cost to them, and that this activity It is part of the banks ’business, but it is the only activity of exchange firms.”
Nasr called for a review of currency exchange rates from one period to another, at a time when banks must keep the customer and benefit from all his activities.
Minor differences
In turn, the banking expert, Awatef Hermoudi, said that the differences in exchange rates are simple, but dealers with small salaries do not bear them, preferring exchange firms.
She added, "In general, exchange firms are not better than banks. Companies in airports, for example, offer exchange rates with large differences."
Al Harmoodi stressed that banks offer better benefits from exchange companies, including 24-hour availability, in addition to keeping customer records and transactions.
And she continued, "Despite this, the banks are required to review these prices from one period to another."
Know the price
One of the important tips for transferring funds electronically, said banking expert Mohamed El-Shazly, to know the price of currencies and compare them before transferring, as well as looking at fees imposed on the transfer amount and asking about their value accurately.
He added that the high rates of transfers at banks are the result of the bank's hedging towards some currencies, pointing out that financial transfers are a sub-activity with the bank, and therefore, we find that many banks do not give it great importance, although this is an error on its part.
He continued: «The banks should take advantage of this activity to increase their returns through currency price checks, to reduce the transfer process, in order to benefit from the base of dealers in raising the returns of this activity, and link the bank to the customer.»