File picture used for representation
Doha, Qatar: The foreign exchange market experiences heightened activity during the holy month of Ramadan, driven by increased demand for remittances and foreign currency exchange. Officials from exchange companies estimate that transaction volumes rise by approximately 5 percent to 7 percent during this sacred month.
Speaking to Qatar News Agency (QNA), those officials highlighted that this kind of activity has started to witness transformations imposed by cutting-edge technologies and AI, as they have seen an increasing shift toward the utilization of advanced technology, including mobile applications and electronic payment systems.
Adaptation to these evolving dynamics has triggered exchange companies to enhance their service offerings by providing more seamless online platforms and dedicated applications aimed at expediting financial transactions, they underlined.
CEO at Al Dar for Exchange Works, Jumah Al Maadhadi predicted an improvement in the banking sectors during the holy month of Ramadan, along with the upsurge in remittance activity and demand for foreign currencies to reach approximately 5 to 7 percent.
Al Maadhadi underlined that it is imperative for the foreign exchange market to cope with the technological advancements, especially the AI-powered technologies to tailor offerings in alignment with customer preferences, especially amid the prevalence of financial technology applications.
Through the recent years, a noticeable impact on foreign exchange operations has been observed, as AI-driven applications have dramatically captured a growing share of exchange market activity and transaction volumes, he highlighted.
Al Maadhadi pointed out that the upsurge in the volume and value of remittances during Ramadan is a key factor in driving the economy in Qatar, where residents significantly contribute to the domestic economy, in addition to the importance of these remittances in supporting their families in their home countries.
He noted that the increase in remittances during Ramadan reflects the heightened demand for financial support from residents transferring money to their families for Ramadan necessities, such as food, clothing, and holiday preparations, highlighting that demand for certain currencies, such as the Saudi Riyal, coincides with the Umrah season and travel to perform the pilgrimage.
For his part, Chairman at Arabian Exchange Co, Maqbool Habib Khalfan, emphasized the increased demand for financial support from the families of residents in their home countries to meet Ramadan necessities and beyond.
With the advent of the holy month of Ramadan, folks are increasingly pivoting toward money transfer, especially with the upsurge in travel and family visits, as numerous residents in Qatar prefer transferring monies to their countries at this time to fulfill the needs of Ramadan, he said.
Khalfan added that exchange transactions typically increase by approximately 7% during Ramadan compared to other months of the year, noting that demand for currencies, such as the Saudi Riyal, has been rising since Rajab due to a sheer number of citizens and residents traveling to Saudi Arabia for Umrah.
He highlighted that the holy month of Ramadan is normally associated with an increase in charitable works, where social interdependence and donations constitute a sheer part of the culture, thereby encouraging expatriates to send adequate monies to support their families and those in need.
Khalfan ruled out the possibility that some money transfer companies would offer special promotions or discounts during the holy month to encourage remittances, particularly given the strong demand from workers and middle-income groups for transfers.
Business development consultant at Al Sarraf Holding Company, Dr. Ahmed Bani Younis, highlighted that the exchange companies’ working hours are regulated by the Qatar Central Bank, affirming that they extend hours during Ramadan due to increased demand. He noted a 5% rise in remittances during Ramadan and emphasized the growing role of technology in the exchange market.
He noted a significant rise in demand for the Saudi Riyal during Ramadan, driven by many individuals traveling for Umrah, with additional demand expected during the Hajj season, confirming that that East Asia, the Middle East, and Africa account for the largest share of remittance activity, with Asian labor remittances representing nearly half of the total, followed by remittances to Arab and African countries.
