Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

UAE - New rules to help money exchanges double capital  Join our daily free Newsletter

MENAFN - Khaleej Times - 08/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) Khaleej Times spoke to leading stakeholders, who welcomed the Central Bank of the UAE's new rules, which will make sure that the firms dealing in cash had enough financial means to sail through in times of crisis



Dr B.R. Shetty, managing director of the UAE Exchange, welcomed the new rules, which will allow only professionally run firms to survive



"With the higher capital requirement, the customers may not suffer at the hands of a financially weak or technically incapable money exchanges," he said



Now the Central Bank will interview the officials who will manage the exchange company, which must be lauded, as only highly capable professionals will be allowed to run such businesses, he said



Jitendra Gianchandani, chairman, Jitendra Consulting Group, said the move was part of government strategy to regularise the sector



"New rules will enhance the general public's confidence, as their money will be handled by financially sound firms," said Arbab Ali Narejo, the general manager of Abu Dhabi based National Exchange Company. He said that the Central Bank of the UAE has taken right measures in order to groom the exchange firms on modern lines, and beef up their operations



The exchange firms' setup on partnership basis had no minimum capital requirements, due to which several firms had been set with small capital. And since the business has grown manifold in recent years to wire transfers, buying/selling in currencies and Wages Payment System or WFS, there was need to increase the capital, in accordance with the expansion in business volumes, Narejo said



The general manager said an LLC setup to carry out exchange business must have 100 per cent bank guarantee to equal minimum capital of Dh50 million, in previous rules, the bank guarantee was 50 per cent of the capital



All these measures have been taken after the recent collapse of an exchange firm whose employees misappropriated the funds of the wages payment system account and the company had not enough capital to pay the claims, he said the new rules will address this issue in the future



With the new rules and emphasis on higher capital, there was enough cushion against such an eventuality, the general manager said



For each of the new branch opened, the exchange company has to increase its capital by ten per cent, he said, which was a good measure, as the expansion would commensurate with their capital.


 






  MENA News Headlines
 Aug 21 2014 - Asry signs USD8.6m desalination plant contractMENAFN
(MENAFN) Asry, the leading ship and rig repair yard in the Gulf, agreed a build-operate-transfer (BOT) contract for the completion and upgrading of a reverse osmosis seawater desalination plant, Gulf ...

 Aug 21 2014 - Generational Diversity Expert Dr. Chip Espinoza Completes Seminal Work MillennialsWorkMENAFN Press
(MENAFN Press) It is no secret that young adults commonly referred to as Millennials grew up in a culture radically different from those of the generations that preceded them. Not only were ...

 Aug 21 2014 - Hamas warns foreign airlines as Israel declares talks overArab News
(MENAFN - Arab News) GAZA CITY Palestinian Territories: The armed wing of Hamas warned foreign airlines against flying into Tel Aviv on Wednesday and declared truce talks in Cairo over as a six-week ...

 Aug 21 2014 - Saudi- Iconic Urdu poet in Jeddah for mushairaArab News
(MENAFN - Arab News) Some of the most-loved names in Urdu poetry will regale hundreds of expatriates with their couplets at the Indian Consulate's annual mushaira to be held at the International ...

 Aug 21 2014 - Saudi- PISJ-ES reports outstanding academic featArab News
(MENAFN - Arab News) Students of the Pakistan International School-Jeddah (English Section) (PISJ-ES) have shown outstanding academic performance this year.According to the school's acting principal ...

 Aug 21 2014 - 77000 Saudi youth aspire for skilled jobsArab News
(MENAFN - Arab News) With only three days left for submitting applications around 77000 Saudi men and women have enrolled for vocational training at the Colleges of Excellence (CoE) throughout the ...

 Aug 21 2014 - Saudi- Woman ordered to pay SR30000 for khulaArab News
(MENAFN - Arab News) A court in Riyadh has ordered a woman to pay SR30000 for her to be able to separate from her husband after he injected her with a narcotic substance local media said.The man in ...

 Aug 21 2014 - Saudi- Shoura member to speak at world science conferenceArab News
(MENAFN - Arab News) A leading Swiss scientific foundation has chosen a female Saudi Shoura Council member to speak alongside international personalities at a conference highlighting the role of ...

 Aug 21 2014 - Saudi- Punished for misbehavior women riot at Asir orphanageArab News
(MENAFN - Arab News) Nine young women at Asir's public orphanage aged between 20 and 23 started a riot in the building on Sunday burning records and assaulting the director of the orphanage after ...

 Aug 21 2014 - Saudi- Al-Balawi isacting chief of Border GuardsArab News
(MENAFN - Arab News) Maj. Gen. Awad bin Eid Al-Balawi has been appointed acting director-general of Border Guards following the death of Gen. Zamim Al-Sawat.Interior Minister Prince Mohammed bin Naif ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help