Expatriates using quick-cash remittance services are reportedly being taken for a ride by some money exchange houses, which allegedly offer them manipulated exchange rates.
Expatriate workers from India, Pakistan, Bangladesh, the Philippines and Sri Lanka, who remit millions of dirhams every month are apparently deprived of thousands of dirhams in this manner, without their knowledge, The Emirates Today reported on Sunday quoting industry sources. It is believed that a great amount is misappropriated from illiterate labourers, who earn between Dh500 and Dh800 a month.
"I go to an exchange house in Dubai to remit money for my family. Every time I have noticed that its exchange rate is about 50 fils to 75 fils higher than the rate offered by other exchange houses in the area. There are many illiterate customers who are not aware of the exchange rate mechanism,' said a regular customer, who wished to remain anonymous.
"In some cases, different customers are offered different rates on the same day. Two quick-money remittance services offered by the same company have considerably different rates,' he added. The manipulation is common on the draft rate and instant or speed money transfer schemes. Instant money schemes involve service charges of Dh15 and Dh25.
Money exchange industry sources admitted some exchange houses do manipulate the rates and the practice is rampant on Fridays or public holidays when a large number of illiterate customers, mainly workers, use the facility.
"On Fridays, the exchange rate displayed on the screen is manipulated more because employees believe no officials will inspect their outlets. I think the authorities should inspect these money exchange houses on Fridays and Saturdays,' newspaper reported quoting a source. Money exchange companies employ agents to visit the sites of construction companies and labour camps.
"We go to labour camps to help workers remit money to their families. Most of them don't know anything about the exchange rates," one agent said.
"Illegal hawala operators are luring these workers by offering better rates than those offered by the money exchange houses,' he claimed. A random survey of exchange rates displayed by various exchange houses in the city yesterday revealed that rates do differ by 50 fils.
A Dubai-based financial expert said: "Exchange rates differ slightly from one bank to another or one exchange house to another. However, these differences are minor. If there is considerable difference, customers can go to another exchange.'
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