The Foreign Exchange and Remittance Group (FERG) declared that exchange houses that fall under the purview of UAE authorities have been given permission to introduce an optional strategic fee adjustment. This adjustment permits a minimum increase of 15%, or Dhs2.50.
This is the first price change in five years, and the decision considered the increased costs associated with the prior update and the changing regulatory environment.
It is anticipated that fees for remittance services through physical branches will rise. Still, remittances made through exchange houses’ mobile apps will probably stay the same or decrease to remain competitive online.
The approval was given after thoroughly assessing the costs of upholding strict regulatory compliance requirements and excellent service standards. To address the rising expenses and maintain exchange houses’ competitiveness, this decision attempts to find a middle ground.
According to the World Bank’s Remittance Prices Worldwide database, it is projected that the average remittance cost of sending US$200 equivalent will stay at less than 3.5 percent despite the permitted modification. This is much lower than the global average, which was at 6.2 percent throughout 2023.
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