Even as the Indian rupee extended its fall and breached the psychological 70-mark for the first time against the US dollar, it sparked a sudden surge in remittances from the United Arab Emirates (UAE) and other Gulf countries.
Many exchange houses have reported up to 25 per cent rise in volume.
The exchange houses in Dubai had seen a rush from Monday itself as Indian rupee recorded its biggest intra-day fall in the past five years, hitting a low of 69.93 (18.9 per dirham) against the US dollar, following a global currency crisis after the Turkish Lira was battered over escalating tensions with the US.
Most money exchange houses are bracing for a steady increase in the number of expat remitters in the coming days if the trend continues.
Speaking about the trend, Promoth Manghat, CEO, UAE Exchange Group, said, “Across all outlets in the country, there was an almost 25 per cent spike in remittance volume when compared to normal days.”
“Remittances to India have been on the higher side over the past few months due to the volatility in the Indian currency, and are subject to further increase, leading to remitters getting more value for every dirham they send back home,” he added.
According to a World Bank report, the UAE along with the other GCC countries with dollar pegged currencies have been a major source for inward remittance to India, which reached USD69 billion in 2017.