Black market thriving, hits new sectors due to lack of oversight

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‘Law, legislation, strategic plans can control phenomenon’

KUWAIT CITY, Dec 19: The black market is thriving and beginning to invade all areas of life around us. It is no longer limited to the money transfer market, or the commercial field, buying and selling certain types of goods such as watches, bags, and clothes. It has also become pervasive in electronic commerce to selling concert tickets and seeped into entertainment venues, reports Al-Qabas daily. It was recently reported the tickets for some concerts were sold on the black market for a price many times more the face value taking advantage of the situation.

Specialists say this phenomenon can be controlled through law, legislation and strategic plans and it needs strict control by government agencies. Sources warned of the spread of the phenomenon of trading in goods and services provided on the black market, which has recently begun to invade local markets, at prices double the real price, according to the nature of the commodity and the conditions that control its market. The Chairman of the Board of Directors of the Kuwaiti Federation of Exchange Companies, Abdullah Najeeb Al-Mulla, said that the black market always exists in the absence of oversight from the concerned authorities, such as central banks, issuing and receiving cash transfers, whether for individuals or companies.

Negative
He pointed out that despite the negative impact of the black market, especially in the field of currency exchange, there is no strong interaction to address it, as we find advertisements on various social media sites widespread, so who is primarily responsible for these advertisements, and for the loss of the local economy from these transfers that carried out outside the scope of the law, he asked.

Al-Mulla stressed that the treatment of this issue is simple, and lies in the seriousness of oversight in light of the existence of legislation that protects Kuwait from this market, but what we find today is the absence of a responsible party that deals with informal transfers, because there is no conclusive evidence on them, but the continued failure to address them will widen the circle and have negative impact on the economy and on the official companies operating in the market. He explained that the two countries exporting and receiving unofficial transfers must confront them, because they are considered suspicious transactions, and they need deterrent steps to stop their continuation.

For his part, economic and financial expert Maytham Al-Shakhs confirmed that the black market has existed in all countries of the world for many years, and it cannot be completely eliminated, but rather it can be curtailed by applying the law. He explained the definition of the black market is work outside the recognized market organization and outside the law. It is a parallel market to the legal market, and the estimated amounts involved in dealing in the black market are in the millions or even billions, and there is nothing proven about it.

Reasons
He believes that one of the reasons for going to the black market is the high cost in the regular markets, as the price in the “black market” is always lower, and obtaining goods is faster, as well as cash transfers. He added the regulatory authorities have authority over companies that have licenses and are subject to them, and operate in accordance with the established regulations, and whoever violates them will be held legally accountable. For example, there are a number of ATMs that were closed due to their dealings on the black market with entities in foreign countries, and in this case the central bank or government regulators, such as the Capital Markets Authority or the Ministry of Commerce, must impose their supervision on licensed companies and entities.

This news has been read 19348 times!

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