UAE: Should you remit or hold on to your cash when currency hits record lows?

UAE: Should you remit or hold on to your cash when currency hits record lows?

Industry executives suggest that as and when there is a big drop in the currencies, expats should take advantage of it and remit the funds

Published: Wed 23 Aug 2023, 6:01 PM

Expatriates account for over 80 per cent of the UAE population who remit billions of dirhams every year to their families.

A large number of them hail from Asian countries such as India, Pakistan, Philippines, Bangladesh and Sri Lanka. Of late, these countries’ currencies have weakened against the US dollar and the UAE dirham due to political and economic situations in these countries.

On Tuesday, the Pakistani rupee closed at a record low of 299 against the dollar (81.47 versus the UAE dirham) in the interbank market after the government eased import restrictions, resulting in increased demand for the greenback. Similarly, the Indian rupee also hit a record low of 22.85 against dirham last week. While Philippines peso has seen some weakness, too, against foreign currencies, of late.

With currencies hitting new lows, many UAE expats wonder whether they should remit now to take advantage of better exchange rates or hold onto their funds, hoping for a further drop in the currencies.

Industry executives suggest that as and when there is a big drop