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| Bank |
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- Requires an account be opened before business can
begin
- Uses official exchange rate, i.e. 31 Pakistani
rupees to the US dollar
- Bank draft fee of $25
- Delivery is extra
- Overnight courier service is not always reliable
- Reliable delivery may take a week to arrive, and
$40 extra
- $5,000 US dollars will exchange at 154,225
rupees, and take a week to arrive, or risk losing entire transfer
for "faster" delivery
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Hawala |
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- No account required
- Trade currency at higher rate than official
exchange rate, i.e. 35 Pakistani rupees to the US dollar
- Delivery is included
- Only charge is a 5% "handling" fee
- $5,000 US dollars will exchange at 166,250
rupees, and is completed in a matter of hours, guaranteed
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Overhead |
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- Bank has expensive buildings, thousands of
employees, computer infrastructure, HR benefits to pay, expensive
executives, Wall Street to please
- Hawala might occupy a part of someone's Asian
food store, or just as easily could be done at home. No overhead
beyond a telephone or a computer, and a pen
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Recording Keeping |
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- Bank record keeping is designed for greater
transparency to customer and bank
- Banking system is severely threatened under
present financial system
- Hawala record keeping is designed for greater
efficiency, practically no transparency of any kind
- Hawala system is not severely threatened by
present financial system
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