Forex firm revenue rises during lockdown – ARAB TIMES





KUWAIT CITY, Jan. 17: According to official figures, foreign exchange companies earned higher revenues during the closing period than during the opening period in 2020, Al-Anba daily reports. The numbers show that the performance of exchange companies during the COVID-19 pandemic, full and partial shutdowns and business interruptions has been better than at other times in the same year.

This clearly reflects the fact that the trading volume of foreign exchange companies has not been significantly affected by the procedures for dealing with the repercussions of COVID-19, and that remittances have remained a major nerve enriching the operations of the sector during crisis.

According to knowledgeable sources, certain players have played a pivotal role in increasing revenues for exchange companies during the COVID-19 crisis. Although some factors have weakened the sector, such as the rate of expatriates leaving the country or the exit of companies from the market, the following factors have had an active effect on local exchange companies:

1. Electronic platforms – Large companies that are capturing the largest market share of money and currency transfer transactions have smart platforms that save their business and allow their customers to make their transfers during periods of confinement without the need to go to agencies.

2. Postponement of loan maturities – The deferral of installment payments provided significant liquidity to individuals during the curfew period.

3. consumer spending – Spending by citizens and residents during the curfew has seen a drop following the closures, which has provided new rates of liquidity that can be used in transfers.