Remittances of Expats fall by almost 50%
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KUWAIT CITY, Apr 6: The exchange companies reported that the number of monthly remittances by expatriates decreased by 30% to 50%, due to the implications of the Corona crisis.
The sources stated that exchange companies that have online transfers were also affected but to an lesser extent than those that do not provide online transfer services, only 12 of the 39 exchange companies operating in Kuwait provide their customers with online service of remittances.
There has been number of reasons that contributed to the decline in remittances, the most noticeable is discontinuation of marginal employment income and some small private sector companies ceasing to transfer the salaries of employees and others reducing them in half. Other income group is related to those who rely on commissions namely sales representatives.
Sources stated that the partial ban has reduced the number of transfers as per statistics more than 60% of the transfers were taking place in the evening and 40% or lesser in the morning period.
Preventing gathering and entry into the exchange offices for not more then 5 people at a time due to preventive measures by health ministry and suspension of public transportation, taxi, and others have also contributed to this factor.
The sources said that despite of the decrease in the number of transfers the amount of remittances for some have increased for the same previous reasons either to avoid the difficulties of access to exchange companies in fear of implementation of total ban and their inability to send the family’s monthly expenses.
It is expected further decline in the number of transfers reports Al Qabas and their value during the coming period by rates that may reach 60% and more. As more companies will stop paying salaries and expats will be afraid of the future and his inability to provide basic life expenses from food and drink.
On the other hand the sources expressed concern about the continuation of this decline or the total suspension of work if total ban is implemented with obligations related to salaries and rents.
The reasons for remittances to fall
1 – The marginal employment income is completely stopped.
2- Companies stop paying salaries in whole or in part.
3 – Imposing a partial ban suspended from evening work.
4- The decline in other sources of income like commissions for sales representatives.
5 – The difficulty of reaching a money exchange company due to suspension of public transportation (buses and taxis).
6 – Reserving funds due to uncertain future and the inability to provide expenses in Kuwait.
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