Send money home smarter: Score savings in March when remitting rupee, peso
Forex expert tips to maximise your remittance transfers and currency trends explained!
Good news! Sending money from the UAE to select countries just got more financially savvy!
Here's the deal!
Strong South Asian currencies: The Indian rupee is holding steady, while the Pakistani rupee and Philippine peso are expected to strengthen against the UAE dirham in the coming weeks.
This translates to more bang for your buck: When sending dirhams home, you'll get more local currency for your loved ones.
Ready to leverage these remittance-friendly rates? Here's what to do….
Will your currency back home rise or fall in March?
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 days 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.
Pakistani rupee to rise vs. UAE dirham, remit now
The exchange rate of the Pakistan rupee was at 279.23 against the US dollar (76.30 versus UAE dirham) and is expected to strengthen significantly in a month’s time, so it will profit you to remit soon, as forex rates will stay largely unchanged in the next few weeks.
According to research, the Pakistani rupee value is expected to rise the most in value to 75.7 towards the end of March against the UAE dirham, from the levels seen currently. Also, the currency’s value is expected to get even stronger in the month of April.
The Pakistani rupee has been falling against the US dollar and the UAE dirham in the interbank currency market for the past 12 months, weakening by over 20 per cent. Since the start of 2024, exchange rates have been sharply reversing and strengthening since.
Philippine peso value to edge up soon, remit now
The peso was at 15.23 to the UAE dirham and at 55.92 against the US dollar, and these rates are seen edging up higher over the next four weeks. But it’s seen hitting a low value point of 15.36 in the coming days, according to research, making it the most cost-effective to remit when it does.
While 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, a weaker peso would also mean that you will get comparatively more pesos for your UAE dirham’s worth back home.
As the value of the Philippine peso is expected to rise in value against the UAE dirham in the first week of March, such rates make it cost-effective to remit anytime between now and then, whenever it best suits you.
Indian rupee value to hold till May, remit anytime
While the Indian rupee was currently at 22.61 to the UAE dirham, the currency was at 83.04 against the US dollar. The Indian rupee fell to record low levels against the US dollar in 2023 but the currency regained its strength since.
According to new research, the Indian rupee is expected to stay steady against the UAE dirham throughout this month before it ends the month at Dh22.59 – which is about the same level the currency is at currently.
As the exchange rate of Indian rupee will also stay same for expat remitters in the months after, it is financially prudent to remit anytime between now and May. But you’ll get more Indian rupees for your UAE dirham’s worth when it is expected to fall in value in the months after.
While the Indian rupee has been choppy against the US dollar and the UAE dirham in the recent past, the volatility has decreased in the past year. However, as per new forecast estimates, flux is again expected to affect the currency’s exchange rates by the middle of 2024.
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 the 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.
Bottom line?
Remittance rates may seem largely unfavourable to remitters now as the value of most South Asian currencies are experiencing gains. But with the US dollar expected to weaken further over the next six to 12 months, you can soon send more money home when remitting UAE dirhams.
• Check the latest rates: Compare fees and exchange rates offered by different money transfer services. Look for competitive rates and minimal hidden charges.
• Send larger amounts: If you plan multiple transfers, consider consolidating them to benefit from higher transfer limits and potentially better rates.
• Plan your transfers strategically: If you know about upcoming expenses for your family back home, plan your transfers around expected currency movements for maximum savings.
• Stay informed: Keep an eye on currency fluctuations to make informed decisions. Subscribe to alerts or follow financial news sources such as Your Money on gulfnews.com.
• Don't wait! Take advantage of these favourable currency trends and send money home smartly. Remember, every dirham saved adds up!