KUWAIT CITY, March 2: Kuwait's exchange sector faces delays in expatriates' money transfer operations. Several exchange companies have informed their customers that transfers to their home countries will be completed by next Monday at the latest, a significant delay compared to the previous immediate deposit notifications.

The delays are attributed to several factors, including the recent national holiday, which lasted from Tuesday, Feb 25, to Sunday morning. During this time, the operations of local banks, which provide essential liquidity to support the exchange companies, were disrupted. This disruption resulted in insufficient liquidity in exchange companies' balances in the countries where they operate, leading to challenges in meeting the unexpected demand for transfers caused by the extended holiday.

Sources confirm that this situation is an exceptional case in the market. While exchange companies typically hedge against such scenarios, the surge in customer demand altered the usual dynamics, overwhelming their preparations.

An additional contributing factor to the delays was a significant increase in the volume of money transfers. By last Wednesday, many exchange companies had exhausted their balances, and due to the holiday, they were unable to replenish these amounts with fresh liquidity, further hindering their ability to process the increasing number of transfers.

The rise in transfer requests is attributed to two main factors that coincided during this period. First, many companies paid their employees' salaries just before the national holidays, injecting substantial liquidity into customers' accounts and increasing the demand for transfers. Additionally, the start of the holy month of Ramadan coincided with the holiday, prompting expatriates to make their annual transfers to their families. This convergence of events placed significant pressure on exchange companies' liquidity, leading to a spike in transactions in the days preceding the holiday.

Exchange companies have reassured customers that all pending transfers will be credited to beneficiaries' accounts abroad by Monday, following the resumption of local bank operations on Sunday. Companies are actively working to replenish their liquidity and expedite the processing of the accumulated transfers.

With banks resuming normal operations on Sunday, money transfer operations are expected to gradually return to normal. Exchange companies continue to coordinate with financial institutions to ensure that such delays are minimized.