Remittances from UAE to India, Pakistan increase by up to 11% as rupees plunge

PHOTO

Remittances from the UAE to India and Pakistan have increased after both the currencies fell to record lows. Currency exchange officials in the UAE expect a further increase in remittances in the months ahead if currencies depreciate further.

The Pakistani rupee hit 62 against the Emirati currency on Thursday due to political uncertainty and turmoil in the country. Similarly, the Indian rupee fell to 21.83 against the Emirati currency on Thursday. It’s down by nearly eight per cent since January 2022.

An Al Fardan Exchange spokesperson said overall outward personal remittances from the UAE increased by 11.4 per cent.

“We have definitely noticed an increase in remittances to India and Pakistan as the residents take advantage of the weak exchange rate. Remittances to India and Pakistan have increased significantly in terms of transactions, counts and volume. We have seen the volume growth of 12.5 per cent for Indian rupees and 24 per cent for Pakistani rupees compared to last quarter,” the spokesperson said, adding that they expect more remittance business in the coming months if the currencies depreciate further.

Rashed Al Ansari, CEO of Al Ansari Exchange, said remittances by Indian and Pakistani expats living in the UAE continue to increase, owing to favourable exchange rates due to depreciation in the respective currencies against the dirham.

“During the last three months, rupee remittance flows have increased as Indian and Pakistani expats are making full use of the rupee volatility. We estimate an increase of around five per cent in remittance transactions for both currencies. We typically see an increase in remittances and foreign exchange transactions when there is a decrease in the value of any currency against the dollar,” he added.

A LuLu Exchange spokesperson said they have seen growth in remittances in both numbers and volumes to the two South Asian countries.

“Remittances to India and Pakistan have increased between three to five per cent,” the spokesperson said, adding that the trend has become quite unpredictable with a larger group of people still waiting for a further drop in rates.