Residents feel the pinch as dollar loses its sheen

Dubai: The decline of the dollar has taken its toll against the dirham, as residents feel the pinch of their savings losing value when they send them back to their home countries.

The dirham has also been affected by the exchange rate with the euro as a result of this, causing the prices of imported goods from Europe to rise.

While small and middle-income groups were worried the decline of the dollar would raise local expenses, the majority of residents interviewed agreed their savings would be hit hard when sent back home.

"It will have an effect on my net earnings because when I send them back home I will have less purchasing power. My savings are sent to India and I find the exchange rate of the Indian rupee has also dropped as a result of the dollar going down," said Shyam Menon, 39, a sales manager from India.

Pessimistic

He does not believe he will stop buying imported food as the price difference is not that significant.

"There is a slight difference in prices but I haven't switched brands yet because I do not think it has come to that situation."

Andy Brooks, a 39-year-old safety executive from the United Kingdom, agreed the value of his savings would be lost and was worried about whether the value of the dirham would fall further.

"I'm worried about it because I'm on a local salary and receive my income in dirhams. So when I have to send my earnings back to the UK I am losing out on the value, which makes things difficult because I have to sustain property back home," he said.

John Price, 38, a structural engineer from the UK, said that while his business deals abroad will get affected by the decline of the dollar, he did not think that it will effect his decision in purchasing food and other imported goods.

"I am involved with a lot of work in India and deal with US dollars, Indian rupees and the euro, so the costs ultimately get affected with the exchange rates. I don't think that it will have an impact though on food unless it rises drastically."

Anilet Calderon, 30, was pessimistic about the rents in Dubai.

"I am scared I will have to pay more again because of the fall of the dirham. I used to rent a room in Dubai for Dh1,300 per month and it's already gone up to Dh2,500. I am already buying locally-made dairy products and groceries because the prices for imported goods are already high," said the Filipina store manager.

However, Daniel MacGregor, 26 from Britain, said he was not worried at all about the value of the euro going up and it did not personally affect him.

The decline of the dollar definitely affects me because I now have to send 1,000 rupees home to send my family the same amount of money I used to send them. If this keeps up I think I better go back to India.
Mansoor
Sharjah,India
Posted: September 24, 2007, 10:15

It has not affected me in a big way, but I know that it has affected others. Most employers have raised their employees' salaries to compensate.
Ain
Muscat,Oman
Posted: September 24, 2007, 09:26

It is high time the UAE considers de-pegging the dirham against the dollar and move forward as Kuwait has done.
Merwin
Abu Dhabi,UAE
Posted: September 24, 2007, 07:09