UAE dirham is now strong against some major Asian currencies such as Indian Rupee, Pakistani Rupee as well as the Philippine Peso. This is largely attributed to the fact that the dirham has been pegged against the US Dollar which has been a good performer across the world. This has led to increased value by the expats in the UAE sending money home.
Impact on Remittances
The use of Banks in Dubai by Expats is also enjoying better exchange rates. Whenever they remit money to the countries such as India, Pakistan or the Philippines, the same number of dirhams becomes a lot more local money than they were initially. This added value can assist families to meet their cost more easily, both their daily needs and education and savings.
Life of Expats and Financial Planning
The exchange rates are of great concern to many expatriates residing in Communities in Dubai. Small increases in rates will be observed to be noticeable in the long run. This has influenced some expatriates to remit money more or in higher amounts so as to take advantage of the good conditions.
Reason Behind Currency Weakness
There are a number of reasons that are making these Asian currencies weak. The good performance of the economy in the United States has increased the dollar which has in turn enhanced the dirham. Meanwhile, other nations such as Pakistan are experiencing economic problems in terms of inflation and debt and India and the Philippines are experiencing capital outflows and reduced growth projections.
Remittance Behavior and Workforce Trends
The employees operating in the UAE and also the ones related to the best companies in Ajman are redefining their financial strategies. A significant number of them are deciding to remit money sooner than before assuming that the exchange rates will vary in the next few months.
Money Transfer Exchange Rates in UAE
| Currencies | Before | Now |
|---|---|---|
| BRITISH POUND | 0.19 | 0.19 |
| EGYPTIAN POUND | 12.94 | 12.94 |
| NEPALESE RUPEE | 38.14 | 38.14 |
| SRI LANKAN RUPEE | 80.65 | 80.65 |
| BANGLADESHI TAKA | 32.12 | 32.12 |
| PAKISTANI RUPEE | 76.67 | 76.67 |
| PHILIPPINE PESO | 15.78 | 15.84 |
| INDIAN RUPEE | 24.82 | 24.85 |
Should Expats Remit Now?
The economically, this is a good remittances time. Nonetheless, there is a tendency of the experts to recommend a moderate solution. Transfers should be distributed over a period of time instead of sending all money at a single time by reducing the risk in any unforeseen changes in exchange rates.
Conclusion
The high value of the dirham and the low value of Asian currencies offer a good opportunity to the expatriates. The current state of affairs is good, but with some planning and timely updates, it is possible to reap maximum benefits out of this trend.
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