Send money home smarter: Delay remittance plans to December, score savings!
Maximise remittances using currency trends for Indian, Pakistani rupee, Philippine peso
Among popular South Asian currencies, the Philippine peso, the Pakistani rupee, and the Indian rupee are dropping against the UAE dirham in the coming weeks. Ready to leverage these remittance-friendly rates? Here's what to do..
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.
Philippine peso to drop more, don’t remit now
The peso was at 16.05 to the UAE dirham and at 58.95 against the US dollar as we near the end of November, and these exchange rates are seen dropping further to even more remittance-friendly levels over the next four weeks, evaluated Amir Saoud, UAE-based forex market specialist.
“By the last week of this month and by mid-December, the exchange rate is seen hitting its lowest value point of 16.47, according to latest research. Although rates may likely drop even further by the start of 2025, possibly 16.60, you would know for certain only by the end of next month,” Saoud said.
A weaker peso would mean a better exchange rate for overseas Filipino workers (OFWs) who send money home in US dollars, or a currency pegged to the greenback, meaning a weaker peso would mean you will get comparatively more pesos for your UAE dirham’s worth back home.
Next steps? As the value of the Philippine peso is expected to drop in value against the UAE dirham by mid-December, it would be more cost-effective to remit then.
Indian rupee to edge down, delay remittances
While the Indian rupee was currently at 22.98 to the UAE dirham, the currency was at 84.42 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 since last week.
However, according to new research, the Indian rupee is expected to slightly drop in value against the UAE dirham to between Dh23.1 by mid-December, which isn’t much 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 until the start of next year,” 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-December, 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, delay remittance plans
The exchange rate of the Pakistani rupee was at 75.6 versus UAE dirham (279.24 against the US dollar) and is expected to slip further in December. 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 75.7 in the last few weeks of this year against the UAE dirham, added Saoud, which isn’t far lower 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 December without incurring any losses when sending smaller amounts, and save more with larger amounts. This is what new forecasts reveal, and forex experts agree on.
These include factors such as imports and exports, inflation, employment, interest rates, growth rate, trade deficit, performance of equity markets, foreign exchange reserves, and macroeconomic policies, inflow of investments, banking capital, commodity prices and geopolitical conditions.
A possible decline against the dirham reflects the decline of the currencies' fall against a stronger US dollar on which the UAE currency is pegged. However, if the US dollar weakens, the trends will reverse.
In other words, any weakness or strength in the value of your currency in your home country against the US dollar will be automatically reflected in its exchange rate with the UAE dirham as the UAE currency is pegged to the dollar.
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!