Date of publication: Saturday, 09 June 2018
Yousef Al Bastanji (Abu Dhabi)
Local currency traders stressed that the foreign exchange rates of companies and banking offices are determined directly by changes in their prices on the international markets. Prices starting from mid-May 2018 for the purpose of calculating taxes are considered indicative prices.
They pointed out that the local market, which employs about 140 banking companies, is witnessing very fierce competition in this sector. Therefore, companies can not raise prices or expand the margin of fees and commissions charged by exchange or remittance operations, because they will be threatened by the loss of their customers.
They said that the prices issued by the Central Bank are indicative and non-binding to banking companies, but they are binding on the business sectors in the state for the purpose of calculating taxes on a specific date and against a specific foreign currency.
They pointed out that the market witnessed significant growth in remittance and banking activity during the holy month of Ramadan, which is estimated to grow by 10% compared to previous months, especially for Arab and Islamic countries.
Mohammed Al Ansari, CEO of Al Ansari Exchange, said that the list of foreign exchange rates that the Central Bank started issuing on a daily basis from mid-May 2018 is considered indicative prices for the banking sector in the local market. The tax, according to what is announced, explaining that «central» did not ask the banking companies in the State to adhere to these prices. … more