A number of managers of exchange companies’ branches described the desire of expatriates and citizens to transfer money during the Eid holiday and the few days preceding it, on average, noting at the same time that most customers went to large companies at the expense of small ones because of the quality of services provided to them, especially the electronic transfer since the outbreak of the Corona pandemic.
The director of Al-Mulla Exchange Branch in Fintas, Muhammad Badr, said that customers of large companies increased during the spread of the Corona pandemic due to the services provided by developing their sites and providing applications to facilitate the transfer of funds by customers without visiting the branch or calling the service center, indicating that the commissions It is the same if you visit the branch or transfer electronically.
The second quarter of this year and because it includes the month of Ramadan and Eid is considered a season for exchange companies because they witness in such times a very high turnout. However, since the spread of the Corona pandemic has changed, a large segment of them have used electronic channels and have given up visiting branches. , It is expected that the revenues of the second quarter will be greater than the first of this year.
For his part, Hossam El Din Saleh, director of the LuLu Banking Branch in Fahaheel, said that the application of the partial ban during the last period, the closure of the airport and the failure to allow the return of arrivals, and the absence of new visas affected the demand of expatriates to transfer money to their countries at the rates that were before the spread of the Corona pandemic.
He pointed out that the customer demand was for the large companies that accompanied the pandemic to provide electronic services that allowed customers to transfer their money through applications and in a few simple steps, indicating that the Indian community comes first in terms of the volume of remittances, followed by the Egyptian, then the Filipino.
Currency exchange decreased 90 percent
An official in a branch of exchange companies pointed out that the closure of the airport killed the currency exchange side, as it decreased by about 90 percent, as currency exchange is limited to citizens who want to take a vacation outside the country after they are finally allowed to travel.
He stressed that the return of activity to currency exchange is linked to the return of travel movement to normal, indicating that the demand of citizens in the recent period for the dollar and the Saudi riyal.
87% increase in profits of exchange companies
The monetary statistics issued by the Central Bank of Kuwait showed that the net profit of exchange companies jumped during the first quarter of this year by 87 percent on an annual basis, as it recorded a net profit in the first three months of 2021 about 9.94 million dinars, compared to 5.31 million dinars in the same period of 2020.
While the statistic reported that the number of exchange companies decreased by the end of the third quarter to 35 companies, compared to 38 companies in the same month of 2020, their assets increased by 14.6 percent to 261.4 million dinars, compared to 227.9 million dinars at the end of March of last year.