Remittances soar as the rupee slides further

Remittances soar as the rupee slides further

The plunging rupee has caused a parallel rise in remittances being made out from the UAE. The country’s Indian workforce is taking advantage of the falling rupee and thus getting great value for their hard earned dirhams. The Indian currency is currently trading at 74 against the US dollar while it was maintaining 20.028 against the dirham.

After authorities in India made the surprising decision to freeze central bank interest rates, Indian workers are immensely benefiting from the unexpected boom. Many workers are also adapting other measures besides sending money home. Some financially astute workers are hoarding cash in order to sell it to trading houses when rates soar.

Traders say that the trend is not uncommon and a similar tendency was observed earlier this year when the euro was falling. Remittances expectedly soar when currencies fall. While most workers are happy about the fall of the currency, some are also worried about how it would effect family members back home.