Expats in Kuwait Rejoice: Exchange Market Back on Track, Sending Money Home Easier
Kuwait City, Kuwait: Kuwait’s exchange market is experiencing a welcome resurgence after a period of stagnation attributed to the black market currency mafia. The crackdown on these illegal operations, particularly in Egypt, has led to a significant increase in remittances sent through legitimate channels.
Stay updated on Kuwait’s latest news and job openings by following our WhatsApp channel! https://whatsapp.com/channel/0029VaCkXo25q08jnKrRwo27
Black Market Hampered Local Businesses:
The black market’s manipulation of currency exchange rates, specifically the inflated dollar price in Egypt, heavily impacted Kuwaiti exchange companies. Many companies relied on remittances from Egyptian workers, and the black market offered a more attractive (though illegal) option due to the vast discrepancy with official bank rates. This situation pushed some local exchange offices to the brink of bankruptcy, forcing workforce reductions.
Egyptian Crackdown Leads to Remittance Surge:
The Egyptian government’s decision to adjust the official exchange rate closer to the black market value, coupled with stricter controls against illegal currency traders, has significantly shifted remittance behavior. Egyptian workers abroad, especially in Arab countries like Kuwait, are now utilizing authorized exchange channels, leading to a recovery in the Kuwaiti market.
Data Reflects Remittance Shift:
Reports from the Central Bank of Egypt reveal a sharp decline in remittances from Egyptians working abroad during the first quarter of 2024. This decrease coincides with the Egyptian government’s crackdown on black market currency trading.
Kuwait Previously Ranked Third in Egyptian Remittances:
Prior to the crackdown, data showed that remittances from Egyptians working in Kuwait accounted for roughly 14% of the total remittances from Egyptians in Arab countries. Saudi Arabia and the UAE held the top two spots.
The resurgence of the exchange market suggests a potential boost for the Kuwaiti economy. Increased remittance flows can stimulate local businesses and contribute to overall economic growth.
Comments (0)