Remittances: The Appetizing Business of Currency Exchange

In Nicaragua the news that Western Union is studying the possibility of paying remittances in local currency, has sparked an immediate opposition from subagents nationwide.

Friday, February 8, 2013

According to Gilberto Prada, general manager of AirPak Western Union, the initiative aims to attract and not repel customers. However, the official clarified that paying transfers in local currency is still under analysis and for now payments will still be made in dollars.

Meanwhile, the company's assistant managers disagreed with the idea, believing that the measure could lead to losses in their operations.

Antonio Jarquin subagent for the company in Chontales, explained that the Nicaraguan economy is highly dollarized and therefore instead of benefiting, customer will suffer. "It is not true that they will give the customer a preferential rate," he added.

Meanwhile, Marvin Pomares, a representative from the Institute for Protection of Consumers (INDEC), described the situation as unjustifiable because implementing this measure "would be to tamper with remittances from Nicaraguans."

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