Bankruptcy of Al-Jazira Brothers Exchange Company
English - Saturday 16 April 2022 الساعة 02:26 pm
Sana'a, NewsYemen, private:
Reliable banking sources confirmed the bankruptcy of the Al-Jazira Brothers Exchange Company, and the official closure of its doors, at its headquarters in Sana'a, and its branches in all Yemeni governorates in front of customers last Wednesday.
The sources told NewsYemen that the Al-Jazira Brothers Exchange Company informed the exchange facilities and companies and their agents in all governorates of their suspension after they reached bankruptcy.
The bankruptcy of the Al-Jazira Brothers Exchange Company, affiliated with businessman Hamid Al-Mujahid and his partners, came 21 years after starting its activities in 2001, providing financial banking services through 33 main branches in the Yemeni governorates and more than 360 agents.
Bankers attributed the bankruptcy of Al-Jazira Brothers Exchange, which until 2008 was the largest competitor to Al-Kuraimi Exchange, to the obsolescence of its banking systems, and their failure to modernize them in line with the requirements of the Yemeni banking market.
Al-Jazirah Company was preceded by the bankruptcy of the Alinma Express Exchange Company, which is based in the capital, Aden, and the owner of the Saba Union Network for remittances.
During the past months, small exchange companies were exposed to an undeclared wave of bankruptcy, which was active in buying and selling fake foreign currencies in the capital, Aden, amounting to 500 million Saudi riyals per day, equivalent to 135 million dollars, according to banking information.
Financial experts confirmed that the increasing number of small exchange companies in the local market, most of them do not have huge capital, and cannot cover the requests of importing traders, and resort to covering these requests from the dollar by buying from other companies
They explained that there are many money exchange shops and companies, but their capital does not correspond to the size of the economy, as the market's requirements of the dollar are many times the capabilities of the exchange companies.
Banking sources estimated that the number of exchange offices and companies exceeded 1,700, the majority of which are without licenses, and the Central Bank cannot monitor their banking operations.
This chaos in the banking sector caused the currency value to plummet and fluctuate between ups and downs, and the activities of currency speculators to grow, with the number of unlicensed establishments continuing to rise alarmingly across the country.
