Demonetisation: As money plunges, Indians in Gulf confused what to do
- Indian rupee reached its lowest ever point against US dollar and therefore, dropping against UAE dirham.
- The exchange firms in Gulf is also expecting a hike of 6% to 8% in remittances to India as Indian employees will soon get their salaries.
- Expats might wait till the exchange rate with Dirham reaches ₹19 rupee.
The demonetisation has left many confused in India as well as Indians living across the globe.
In Gulf, the Indian expats are facing an unprecedented situation as Indian rupee reached its lowest ever point against US dollar and therefore, also dropping against UAE dirham. This has led to a remittance rush in Gulf money exchanges as Indians there wants to make the most of this situation.
The exchange firms in Gulf is also expecting a hike of 6% to 8% in remittances to India as Indian employees will soon get their salaries and would be taking advantage of rupee's recent drop due to currency ban.
Also, it has been speculated that the exchange rate of dirham-rupee could reach ₹19.05 to ₹19.56 if it crosses the ₹70 mark against US dollar in near future.
The falling rate of Indian rupee has been attributed to the strengthening of US dollar in the global market, capital outflow, and also the impact of the sudden demonetisation of high-value notes in India. To stabilise Indian currency Reserve Bank of India needs to intervene which seems unlikely given the current monetary situation in the country.
The falling value of rupee means the same income in Gulf countries will have better returns in India and as the year end celebrations like Christmas and New Year is around the corner, many expats are expected to send more money home.
However, since rupee is expected to break all records and dip into new low many expats are also thinking of waiting till the exchange rate with Dirham reaches ₹19 rupee.