UAE Residents Rush To Send Money As Indian Rupee Plunges
The Indian rupee slipped to record lows against the UAE dirham, driving many Indian residents in the Emirates to send money home, as the timing could not be better. The exchange rate has touched down to around Rs 24.5 per Dh1.
UAE residents are receiving more Indian currency than usual on exchanging dirhams, helping them pay school fees and household bills.
Reportedly, remittance flows increased as residents took advantage of the exchange rate. As per the Khaleej Times report, many residents said they had sent a larger amount of money as they do not want to miss the opportunity.
Residents have reported sending money three times to their hometowns after the rupee fell. Those who used to send money ranging from 1500-2000 Dh are sending 4500-6000 now.
However, the expenses are also growing back home, but some stagnant expenditures, such as education fees, house rents, and electricity bills, are paid well using this window of fall in rupee value.
The Indian rupee’s plunge beyond 90 to the dollar and slide past 24.50 against the dirham opened the favourable remittance window for non-resident Indians in years.
Reportedly, rupee is down about 5 percent year-to-date, and now is the worst-performing Asian currency seeing the sharpest annual decline since 2022. The sharp downfall is fulled by widening fiscal and trade deficit, persistent foreign investor outflows, weaker foreign direct investment, soft external commercial borrowings and a deceleration in nominal GDP growth.
