Establishing Money Exchange and Transfer Business Research Proposal

Establishing Money Exchange and Transfer Business - Research Proposal Example UAE has an extensive record of the money changers who are involved in exchange of foreign currencies and remittance. The process of remittances took place in the form of a third party money payment system, where the person may pass on the currency to the second party located within or outside the country. This service was utilized heavily by the emigrants in UAE. In the other countries money changers are prohibited, while in UAE and the other Gulf countries they are regulated, licensed, and supervised by the central bank. The money exchange and transfer industry in UAE comprises of more than 212 offices. These money changers utilize the banks, exchange houses, and even agents to take and receive remittances. Â  This system might appear to be informal, but they are formal contractual agreements, and their business is legal and well-established in UAE. The currency of UAE is Dirhams which is linked to the US Dollar. However, Dirham has remained constant more than a period of 20 years (Campbell, 2007, p. 354). Even the foreign exchange market in UAE is not centrally controlled by specific exchange. It is mainly run by the bank through ‘over-the counter’ and by the companies who trade in currencies. The currency brokers are there in the market to offer good deal in foreign exchange because the exchange rate is not the same. There are different prices on which currency is traded depending on the rates offered by the banks or companies into trading and fund transferring business.