There are many ways to remit your hard-earned Dirham overseas, and the remittance industry in the UAE is exceptionally competitive.
However, there is a reason for this: the UAE is one of the world’s largest outbound remittance countries. As per the latest data from the country’s central bank, residents remitted 39.8 billion UAE dirhams to their state in the fourth quarter of 2018.
Secondly, Pakistan and it also have some of the busiest remittance channels. During this period, the total remittances remitted by Indians accounted for 34.2% of the total payments in the Philippines.
Although the highly competitive industry helps drive down prices, new technologies also make remittances faster and more convenient. However, if you want the best price, you have to compare the options, because there may be hidden costs, High up-front expenses and large spreads on currency exchange rates.
Clearing House
The central bank said that clearinghouses are the most popular way to send money from the UAE, accounting for nearly three-quarters of all remittance transactions. In the fourth quarter of 2018, Dh30.4 billion in remittances were transferred through the clearinghouse, while bank remittances were Dh9.5 billion.
Those looking for the best deal can compare prices on the World Bank portal, which analyzes remittance channels to low- and middle-income countries, including India, Pakistan, and the Philippines.
Designed to compare prices when sending money-around Dh700 and Dh1800, some of the cheapest exchanges on the UAE-India corridor it cites are Al Fardan Exchange, GCC Exchange, Al Ansari, Wall St Exchange, Western Union, and by direct Remit from Banks’ Emirates NBD.
Although customers can choose between different transfer services, including
bank-to-bank, cash-to-cash, and even mobile-wallet transfers, it is usually the
best transaction to transfer from account to account rather than cash. A
company representative said At Al Rostami Exchange, the transfer rate from one
bank account to another is much better than the cash-to-cash transfer rate. GCC
Exchange has always been listed as one of the World Bank’s cheapest exchanges.
It only allows online bank transfers to a few beneficiary countries, while
other states require cash in branches. However, according to the company’s
representative, both cash and online transfers received the same exchange rate,
and the cost difference was small. Transfer fees also change regularly, so if
you have been using a service for some time, check again for other options.
Banks
International transfers through your bank are fast and convenient, but they can also be a more expensive option with higher profits and transaction costs. However, in recent years, some UAE banks have introduced products that compete with exchanges. According to data from the World Bank, in the fourth quarter of last year, the cheapest way to conduct remittance transactions worldwide was mobile funds, accounting for 4.9% of the cost of using cash remittances. The average price of using a debit or credit card was 6.13%. The average price of using a bank account to fund transactions is 11.7 %%. This product can be used to transfer money to banks in major remittance countries, including India. Emirates, NBD, and India in 2014, which launched Direct Remit products in 2014. The service was extended to the United Kingdom last year.
Bargain or join the club
When sending money from a remittance bank, it is wise to try to bargain. If you are remitting a large amount of cash, or if the company wants you to be a regular customer, you can negotiate a better price or waive fees. Although preferential or corporate bank customers are usually offered better interest rates than standard customers, exchanges also provide benefits to priority customers. The Emirates Exchange owns Club Exclusive, a loyalty program that provides benefits, including preferential prices, dedicated customer relationship managers, on-site service and priority treatments, so you can avoid waiting for a representative to wait while a line in a branch says, There is no hard and fast rule on who can join the club.-Eligibility depends mainly on the designation. Although there is no minimum transfer amount or membership fee per year, the annual transfer fee should be at least Dh367,000.; A satisfied customer is Fred Wobus, 44, a systems engineer based in Abu Dhabi. He used the scheme to remit money back to the UK and said that due to the Dh52.50 fee plus the “small spread” on the Emirates exchange, the total cost he paid could be as low as 0.45% of his remittance, such as Dh40,000. He said that for amounts less than Dh10,000dh, the total cost is about 0.9%.
Online platform
Another option to send the money is international platforms, such as Currency Fair or Money corp, which can receive Dirhams in their overseas bank accounts-Dirhams transfers are cheaper than regular international transfers-while these platforms also promise to offer higher than banks Profit margin. This option can be more difficult and slower than a regular bank or clearinghouse transfer, and you must ensure that the bank transfers the Dirham to an overseas account, rather than automatically converting the transfer to the local currency. Cronin said, more The big stumbling block was the refusal of some UAE banks to repatriate Dirham overseas. When you plan to transfer money, specific platforms such as Money Corp lock in exchange rates, which is useful if you want to take advantage of attractive exchange rates. However, if you have not completed a transaction, you may need to pay the cost of buying currency in advance.
However, will currency transactions lock the exchange rate, which means that the exchange rate may change when your money arrives; on the other hand, if you do not complete the transaction, there will be no fees.
Currency Fairs also has a free peer-to-peer exchange platform where you can publish the exchange rate you want and wait for matches with other customers who wish to trade in reverse. This may be slightly slower, but it allows you to get a better exchange rate than a clearinghouse or bank.
Before choosing a transfer service, you need to do research. You must carefully compare exchange rates, remittance fees, and processing time to make an informed choice.