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Remittances rise as Indian rupee nears record low

Monday, 22 February 2016
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MUSCAT: The weakening Indian rupee, which is inching closer to a record low of 68.85 against dollar it hit in August 2013, has seen expatriates making a beeline for the exchange houses. The rupee fell 42 paise to 68 per dollar on Wednesday, its weakest level since September 4, 2013.

The past one week has seen a 20-25 per cent increase in remittance volumes, say officials at exchange houses. It happens generally once salaries are paid. This time around it has been mainly high net worth individuals who have been drawing the real benefit of the weak rupee since disposable income with the majority of the expatriates was very low.

Remittances rise as Indian rupee

“As the Indian rupee slides, we see an increase in the transactions and the remittance volume generally increases by 20-25 per cent,” said Boban MP, CEO of Oman UAE Exchange. There was no “significant increase in other corridors, except a slight increase to Philippines.”

A senior official of the Mustafa Sultan Exchange said that high income group individuals, who remit sums ranging from Rs 175,000 to over Rs 1 million and those in the middle income group, who remit between Rs 50,000 and Rs 300,000 have become active over the past one week.

A 15 per cent increase in volume of remittances is in keeping with the pattern witnessed in earlier instances of rupee depreciation, he said.

He said it is possible that the rupee may depreciate further to a rial being Rs 178 in the next two months. Remittances to Bangladesh and Pakistan have also gone up but not to this extent, he added.

Source: omantribune.com