Remittances from the United Arab Emirates to India and Pakistan surged after the two currencies fell to record lows. Foreign exchange officials in the UAE expect a further increase in remittances in the coming months if the currencies depreciate further.

The Pakistani rupee hit 62 against the Emirati currency on Thursday due to political uncertainty and unrest in the country. Similarly, the Indian rupee fell to 21.83 against the Emirati currency on Thursday. It has fallen by almost 8% since January 2022.

A spokesperson for Al Fardan Exchange said outbound personal remittances from the UAE increased by 11.4%.

“We have certainly noticed an increase in remittances to India and Pakistan, with residents taking advantage of the weak exchange rate. Remittances to India and Pakistan have increased significantly in terms of transactions, number and volume. We saw volume growth of 12.5% ​​for Indian rupees and 24% for Pakistani rupees compared to last quarter,” the spokesperson said, adding that they expect an increase in transfers. of funds in the coming months if currencies depreciate further.

Rashed Al Ansari, CEO of Al Ansari Exchange, said that remittances from Indian and Pakistani expatriates living in the UAE continue to increase, owing to favorable exchange rates due to the depreciation of the respective currencies against to the dirham.

“Over the past three months, remittance flows in rupees have increased, with Indian and Pakistani expats taking full advantage of the volatility of the rupee. We estimate an increase of around 5% in remittance transactions for both currencies. We generally see an increase in remittances and foreign exchange transactions when there is a decline in the value of a currency against the dollar,” he added.

A LuLu Exchange spokesperson said they have seen growth in remittances in number and volume to the two South Asian countries.

“Remittances to India and Pakistan increased by 3-5%,” the spokesperson said, adding that the trend has become quite unpredictable with a larger group of people still waiting for further rate cuts. .

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