Team Blitz India
DUBAI: In a major move, the Foreign Exchange and Remittance Group (FERG) has announced that exchange houses under the jurisdiction of UAE authorities have received approval to implement an optional strategic fee adjustment. This allows a minimum increase of 15 per cent which typically equates to Dhs2.50, according to a report in Gulf Today.
This is for the first time in five years that the fee has been adjusted. The decision recognises the evolving regulatory landscape and related cost increases since the previous update.
The fee increase is expected to take place for remittance services provided through physical branches, while remittances offered via mobile apps of exchange houses will most likely remain unchanged or even reduced to maintain competitiveness digitally.
FERG played a pivotal role in carrying out extensive market research and coordinating with the regulatory bodies to facilitate this crucial initiative.
Despite the approved adjustment, it is anticipated that the average remittance cost of sending US$200 equivalent will remain at less than 3.5 per cent, significantly below the global average which stood at 6.2 per cent during 2023, according to the World Bank’s Remittance Prices Worldwide database.
Mohammad A. Al Ansari Chairman of FERG, said, “I commend this decision to allow exchange houses a fee adjustment, highlighting the significance of adapting to the industry’s changing dynamics. This move ensures that exchange houses can sustain the delivery of high-quality services while addressing the changing regulatory requirements and associated operational costs, all of which were maintained without fee increases for the past five years.”
The revised pricing remains well within the United Nation’s Sustainable Developmental Goals which aims to eliminate remittance corridors with costs higher than 5 per cent by 2030.
FERG, through its members, reaffirms its dedication to customer value and satisfaction. This fee adjustment aims to strike a delicate balance between meeting industry requirements and providing competitive offerings to customers, ensuring a seamless, secure and affordable remittance experience.
