New ‘Diraya’ video addresses safe investment
KUWAIT: In an effort to enhance financial awareness across all segments of society and encourage the Kuwaiti banking sector’s social responsibility activities, the Central Bank of Kuwait is presenting new informative video content addressing safe investment and means of protecting customers’ personal and bank information. This comes as part of the CBK-supervised “Diraya” campaign (Be Aware in Arabic) which is managed by Kuwait Banking Association (KBA) with the participation of all Kuwaiti banks.
Announcing the new content, the CBK stressed its keenness to direct banks to promote saving among their customers. It also urges them to present sufficient information and explanation regarding different investment and saving products and services that help customers manage their investments and increase yield, such as the array of deposits, investment portfolios and funds, and savings accounts as well as fully explain each option and its level of risk, if any. This aims to help customers make an informed decision and stress the importance of planning and preparing for the future and any changes or responsibilities it may bring such as tuition fees, retirement, etc.
Along these lines, the CBK pointed out that investments may be classified according to risk involved, and that “high-risk” investments are sometimes being promoted through promises of quick and high profit. This includes investments that are not regulated by any authority or legislation that protects investors’ rights such as crypto-assets the likes of “Bitcoin” which does not fall under the authority or regulation of any institution, neither locally nor internationally, making it a possible means and instrument for illegal activity.
“Forex” trading and speculation activity, an abbreviated coinage for “Foreign Exchange”, is another form of high-risk investment where foreign currency is exchanged through apps and platforms working within a global currency trading market. In addition, while currency is often exchanged for purposes such as travel, import and export of goods, and so on, many parties engage in speculative trading seeking quick profit from fluctuation of currency exchange prices. Speculators often fall victim to fraud through fake websites, which adds the additional risk factor of “reliability”.
The CBK thus strongly urges those seeking to invest to realize in full the risks associated with their chosen investment, to have sufficient knowledge of the field of investment, and to avoid investment with any unreliable parties to avoid financial fraud.
All “Be Aware” informative media is published through multiple communication and information channels including CBK and Kuwaiti banks’ social networks accounts. More information on the campaign and its goals, and more literature on this topic is also accessible through the official website: www.dirayakw.com