UAE OFWs quick to cash in after Philippines Peso slips to 15.7

Dubai: Filipino expats in the UAE are getting a month-end bonanza, with the peso dropping all the way to 15.77/15.78 to the dirham - and the lowest for over a month. That's a sizable drop from the 15.3 levels the Philippines currency had been trading at for most of July.

In between, the drop had widened to 15.8 levels.

This comes after dollar's continued rise this week, with the Dollar Index shooting past 99 from the 96/97 levels it had been in recent weeks. (The Dollar Index measures the relative strength of the dollar against a group of other currencies.)

Just last evening (July 30), the dirham-peso exchange rate had been around 15.59-15.63, but that's changed early today with the drop to 15.77 levels.

Many OFWs (Overseas Filipino Workers) had gone ahead and sent their money transfers Wednesday itself once their salaries arrived.

"The way the dollar is trending, there is a good chance for the peso and most other Asian currencies to be under high pressure in the coming days," said a currency trader.

The highest point for the peso against dirham was 16.1 in early February. It had reached 14.98 levels in May.

Many OFWs are also now starting to scout around for the best possible exchange rates and fees that local remittance houses or platforms offer.

"I have been sticking with the same currency exchange house for years - but there are others offering better options on fees," said Nympha C., who works at a multimedia company. "In some cases, the cost of remittance is as high as Dh10 between what I pay and what other platforms are offering.

"I have been with the currency exchange house because of the cashback promotions they have been running. But now, I plan to look for options."

The cost of remittance has become a key issue for expats in the UAE, irrespective of where they are from.