KUWAIT CITY, Sept 16: Market shares of money exchange companies have recorded drop by about 97.5 percent in the last few months compared to the same period last year, reports Al-Rai daily quoting sources from the money exchange sector.
They indicated that Kuwait has 40 exchange companies including five major ones that control the market of Egyptian money transfers.
According to a comparative study of these five major money exchange companies carried out by the daily based on information from sources and unofficial data, the biggest exchange company that is specialized in Egyptian money transfers has recorded severe deterioration such that the company used to handle 90,000 financial transactions on a monthly basis in the previous phase but it has reduced to just 16,000 transactions in the recent phase.
The transactions of the second major company have also reduced from 60,000 per month in the last phase to 11,000 recently.
The third big exchange company recorded fall in the number of monthly financial transactions from 30,000 in the last phase to 5,000 in the recent phase.
The losses incurred by the fourth and fifth big companies are much more. The deterioration in these companies is not just in the number of transactions but also the value of the transferred amounts.
In the previous phase, transactions amounting to about EGP 10 million were carried out every day but lately the total amount being transferred on a daily basis ranges between EGP 50,000 and EGP 250,000 especially during the time of the month when salaries are paid.
The study believes the difference in the value of the Egyptian pound and the American dollar has forced many Egyptian expatriates in Kuwait, who form the second highest expatriate community in Kuwait after the Indian community, to refer to the black market for transferring their money in order to save both time and money.
Due to the reduced number of financial transactions by Egyptian expatriates in Kuwait, many exchange companies in the country have incurred huge losses.