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January 13, 2014updated 04 Apr 2017 4:09pm

Money exchange companies in UAE refuse to lower fees on transfers

Money exchange companies in the UAE have rejected proposals by the central bank to lower fees on domestic cash transfers.

By Ellie Chambers

Money exchange companies in the UAE have rejected proposals by the central bank to lower fees on domestic cash transfers.

The central bank requested that the firms lower the fees to AED2 ($0.54) to match the fees on ATM transactions, but were told that ATM transactions cost the companies a lot less to perform.

The companies said they could not meet this lower fee due to the costs they incur through branches, employees, transportation of funds and security.

Talks are expected to continue over the coming days in the hope that the two sides can reach an agreement.

For the time being, the exchange companies have agreed to maintain the current fee system.

The current fee for transfers under AED20,000 is AED20, then AED50 for transfers between AED20,000 and 100,000.

For transfers between AED100,000 and 500,000 it is AED75 and for amounts between AED500,000 and 1m it is AED100.

Transfers of over AED1m currently cost AED150.

 

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