Dubai: Non-resident Indians (NRI), who earn in dollars, dirhams or any other strong currency, are rejoicing as they get more Indian rupees for the money earned.
One dirham fetched 19.25 Indian rupees yesterday, an increase of 11.1 per cent since the start of the year.
“NRIs across the world are largely benefiting from the weak Indian rupee as they get more value for every dollar or dirham that they send back home. Indian expats are closely monitoring the fluctuating currency and are using this situation to their advantage,” Sudhesh Giriyan, chief operating officer, Xpress Money said.
Xpress Money has witnessed double digit growth in remittances to India in the past few weeks and the trend is likely to continue.
“A few high-net-worth individuals (HNIs) could be holding on to a bulk of cash in the hope of a further depreciation in the days to come,” Giriyan said.
India has been one of the leading beneficiaries of the remittances from across the globe.
The global remittance industry is expected to hit $626.4 billion (Dh2.30 trillion) in 2017 — growing at around 3.97 per cent compared to 2016, according to reports from the World Bank.
“As far as remittance is concerned,the NRIs are getting more rupees for their dirham,which they are happy about, but inflationary pressure back home takes away this advantage, when families back home had to shell out more for their consumables,” Y. Sudhir Kumar Shetty, president at UAE Exchange said.
“Generally, the sliding rupee attracts more remittances from middle and upper-income groups who take advantage of the situation, whereas low-paid workers have to send money every month for their family maintenance, regardless of whether the movement of the rupee is favourable or not,” Shetty said.
Company experts also said this fall in the rupee would also mean more money sent to Kerala, which has been reeling under the worst floods in a century.
Kerala received 40 per cent of the total remittances that came to India.