It acquires an 80% market share of remittances in the country

"Banking institutions": stability in wage transfers and a boom in the second quarter

  • The level of remittances witnessed a limited decline of 5%.

    Emirates today

  • Muhammad Al-Ansari: "The merger between small companies may be a strong proposition, as an alternative to a final exit from the market."

picture

The Chairman of the Board of Directors of the Group of Banking and Financial Transfer Institutions in the Emirates, Chairman of the Board of Directors of "Al Ansari Exchange Group", Muhammad Al-Ansari, confirmed that the movement of workers' wages transfer in the UAE has not witnessed a decline over the period since February 2020 (the year of Corona) until now, describing the situation That it is "stable despite the pandemic conditions."

Al-Ansari expected to "Emirates Today" that the second quarter of 2021 will witness a recovery in the money exchange sector, and that the coming period will witness the exit of a number of exchange companies from the market, due to their inability to implement the decisions of the Central Bank.

Transfer of wages

In detail, Al-Ansari stressed that the movement of transferring workers' wages in the UAE has not witnessed a decline over the period since February 2020 (the year of Corona) and until now, describing the situation as "stable despite the pandemic conditions."

He told "Emirates Today": "It is true that the number of people who receive their wages through exchange companies did not increase during the year 2020 as is the case every year, but at the same time we did not witness a decrease, and this in itself is a positive thing, given the market conditions that prevailed on Year round ».

Level of transfers

Al-Ansari stated that the level of remittances during the same period witnessed a limited decline of no more than 5%, unlike the currency exchange sector, which fell by 75%, due to the measures related to travel restrictions and the closure imposed by the countries of the world.

He pointed out that, starting from the third quarter of 2020, the currency exchange movement began to gradually return to levels before the period of the Corona pandemic, after the restrictions on travel movement were eased and flights were opened.

Expectations of recovery

Al-Ansari stated that exchange companies acquire a market share of up to 80% of remittances in the country, while the remaining percentage takes place through banks, expecting that the second quarter of 2021 will witness a recovery in the exchange sector, in conjunction with the increase in the percentage of the population who received the anti-vaccine Corona virus, the gradual return to normal life, and the approaching date of the Expo 2020 Dubai, next October.

Merger or exit

Al-Ansari expected that the coming period will witness the exit of a number of exchange companies from the market, due to their inability to implement the recent decisions of the Central Bank regarding compliance with anti-money laundering controls, and the appointment of highly qualified employees in auditing, accounting and auditing, and other matters.

He added that the merger between small companies may also be strongly proposed, as an alternative to leaving the market permanently, so that these entities can implement the decisions of the "central".

Al-Ansari stressed that the banking institution spares no effort in providing training courses for the employees of exchange companies to develop their skills and competencies, to be able to apply the new procedures, stressing that the coming period will witness an intensification of such courses.

Smart applications

The Chairman of the Board of Directors of the Group of Banking and Financial Transfer Institutions in the Emirates, Chairman of the Board of Directors of "Al Ansari Exchange Group", Muhammad Al-Ansari, confirmed that there is an increasing trend towards the use of smart applications in financial transfer due to its ease, as every exchange company is keen to provide this service to its dealers. In addition to the fact that the fees themselves are competitive, and do not differ much from the transfer through branches, pointing out that the remittance commission in the UAE is one of the lowest rates in force in the world.

Follow our latest local and sports news, and the latest political and economic developments via Google news