(MENAFN- Khaleej Times)Remittances to India recorded around 25 per cent increase during the last few days on attractive exchange rates following the Chinese yuan devaluation according to top executives of exchange houses in the UAE.
Around 2.5 million non-resident Indians known as NRIs live in the UAE. Last year India received $70.4 billion remittances from its worldwide diaspora. In 2014 NRIs based in the UAE sent home $12.6 billion remittances according to the World Bank. White-collar workers in the UAE took the advantage of freefall of currencies and remit more money compared to last few months industry experts told Khaleej Times on Wednesday. Blue-collar workers couldn't take advantage of record low exchange rates as they send money at specific dates every month after getting their salaries they added. Exchange rate for the Indian rupee hit a two-year low of 18.10 last Monday against the UAE dirham. Although these low rates might not spell well for the Indian economy expats welcomed these rates with open arms. It is not just the Indian rupee that has gone to recent-record lows but also currencies of Philippines Pakistan Bangladesh Nepal and Sri Lanka as well. The Philippine Peso hit a five-year low of 12.75 Peso against the UAE dirham which is great news for Filipino expats. But as with Indian expats Filipinos too are hoping that the rate will hold until the end of the month. Exchange rates for Indian rupee across the GCC have also been at their highest in quite some time with the currency going for 18.70 against the Qatar riyal 17.29 against the Saudi riyal 173.05 against the Oman riyal 217.49 against the Kuwait dinar and 174.06 against the Bahrain dinar. Last Tuesday Indian rupee gained the most in more than a year after record low on Monday. On Wednesday Indian rupee Pakistani rupee Bangladeshi taka and peso remained almost unchanged. Many salaried Indian expats are hoping for the rate to stay until the end of the month so that they can capitalise on the good exchange rate since they have already remitted a part of their income at the start of the month and have to wait until the next pay comes to make any transactions. "There has been a slight spike in the number of transaction as well as volume sent across to the South Asian corridor. Much of it has been a high volume transaction with remittances being done by people who held back their money looking for better returns. The rates may prevail for a few more days but the downfall is limited" Adeeb Ahamed CEO LuLu International Exchange told this scribe. The exchange rate for the Indian rupee hovered between 17-17.35 these past two weeks and last Friday touched 18 against the UAE dirham. The exchange rate of 18.10 is the lowest for the Indian rupee against the UAE dirham since 2013. The lowest prior to that was 18.60 but didn't stay on for too long after the Reserve Bank of India intervened and brought stability to the Indian rupee thereafter. The current fall in rupee is mostly attributed to the falling oil prices as well as the strengthening of the dollar. Earlier in the month China devalued its yuan that stirred equity as well as currency markets globally. Recent stock markets crash cost billions of dollars to rich people following yuan devaluation but foreign workers got the benefit in terms of better exchange rates and sent money back home as much as possible Xpress Money chief operating officer Sudhesh Giriyan told this scribe. Favourable exchange rates helped surge remittances to India between 20 per cent and 25 per cent. "We got enquiries from HNWIs as they wanted to take the advantage of good exchange rates" he explained. Responding a question what are the options for HNWIs if they are sending money to India he replied: "There are a couple of options as they can investment in property stock market and fixed deposits." Non-resident Indians (NRIs) can borrow money here in the UAE at 4 per cent interest rate and can deposit back home and will get more than seven per cent interest rates he said adding that so they NRIs will get more benefits. NRIs compared to Pakistanis Bangladeshis and other Asian expatriates have more disposable income so they send more money and get more benefits he explained. -
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