Send money home smarter: Delay remittance plans to March, score savings!

Dubai: Good news! Sending money from the UAE to select countries just got more financially savvy! Here's the deal!

Among popular South Asian currencies, the Pakistani rupee and the Indian rupee are all seen slipping against the UAE dirham in the coming weeks. Ready to leverage these remittance-friendly rates? Here's what to do..

Will your currency back home rise or fall?

When it comes to sending money back home, it is vital to know whether it is currently an ideal time to remit. To understand whether it is or isn’t, one should first find out if your currency back home is expected to rise or fall in the weeks to come. Check live forex rates here.

Here is an analysis of how the currencies have been performing and expected to perform in the coming weeks and month, to help understand whether remitting money now is profitable or cost-effective, or should you wait it out for a few weeks for a better rate to come along.

Indian rupee to edge down, delay remittances

While the Indian rupee was currently at 23.57 to the UAE dirham, the currency was at 85.57 against the US dollar. After the Indian rupee last fell to drastically low levels in 2019 and 2021, the currency was seen plunging much further in value to new record low levels in recent months.

However, according to new research, the Indian rupee is expected to drop even further in value against the UAE dirham to between Dh23.84 by mid-March, lower from the level the currency is at currently, confirmed Jasdeep Singh, Dubai-based forex trader and analyst.

“Additionally, rates are further expected to stay under pressure in the next few months as of now,” Singh added, but when asked what is a near-term trend remitters can rely on to base their current plans on, he noted:

“The latest trend still makes it cost-effective and profitable to your savings levels to remit in a few weeks, particularly when sending larger amounts in Indian rupees.”

Next steps? As the exchange rate of Indian rupee is expected to move to weaker levels for expat remitters by mid-March, it is financially prudent to hold off remitting until then, which is when you’ll get more Indian rupees for your UAE dirham’s worth.

Pakistani rupee to slip, postpone remittance plans

The exchange rate of the Pakistani rupee was at 76.12 versus UAE dirham (279.60 against the US dollar) and is expected to get slip in March. This is why Saoud notes that it will profit you to remit when forex rates slip further in value.

The Pakistani rupee had fallen against the US dollar and the UAE dirham in the interbank currency market in 2023, weakening by over 20 per cent, but since the start of 2024, exchange rates have been sharply reversing and strengthening since.

However, the Pakistani rupee value is expected to slip to 75.24 in the next few weeks against the UAE dirham, added Saoud, lower in value from where the currency is at currently.

“The good news for the Pakistani rupee is that it still hovers at strong levels, and will continue to do so, but the forecasted levels are such that it will at the same time aid those looking to get more from their home-bound remittances.”

Next steps? As forex rates for the Pakistani rupee will edge lower over the next few weeks, you can postpone your remittance plans to March. However, bear in mind that rates will get less remitter-friendly in the immediate months afterward.”

Key takeaway going forward?

Remittance rates will remain favourable to remitters for the time being, with the value of most South Asian currencies seen experiencing weakness in the weeks to come. This is because the US dollar is expected to strengthen further in the short-term, as per latest forecasts, meaning you will find more opportunities to send more money home. So be on the lookout for more such regular updates on forex rates in the months to come!