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8/7/25, 10:12 AM UAE-based Indians rush to send money home as rupee nears record lows

UAE-based Indians rush to send money home as rupee nears

record lows

The Indian rupee has slipped close to record lows against the UAE dirham, presenting a windfall for Indian expatriates in
the Emirates who are remitting more to take advantage of favourable exchange rates.

Currency dealers and remittance companies say activity has surged in recent days as the rupee traded around Rs23.91
per dirham, with intra‑week swings between Rs23.63 and Rs23.95 — among the weakest levels in recent years.

The decline has been driven by a mix of global and domestic pressures. Heightened trade tensions between the US and
India, including the threat of new tariffs of up to 25per cent on Indian exports, have unsettled markets. Investors have
pulled more than $2 billion from Indian equities in July 2025, marking the rupee’s worst monthly performance since 2022.

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Rising global oil prices have inflated India’s import bill, worsening its trade deficit, while the Reserve Bank of India has
opted for a measured approach to intervention, allowing the currency to adjust to external shocks.

For Indian workers in the UAE, the rupee’s weakness has translated into higher value for every dirham sent home. “The
current exchange rate presents a unique opportunity for Indian expatriates in the UAE to maximise the value of their
remittances,” said Rashed A. Al Ansari, CEO of Al Ansari Exchange.
“While the rupee’s outlook will continue to depend on a mix of global and domestic factors, we are fully prepared to meet
increased demand and provide customers with the best possible value and service.”

Al Ansari Exchange has reported a notable increase in remittance transactions since the rupee’s slide accelerated.

Customers are remitting higher amounts in rupee terms for the same outlay in dirhams, offering a meaningful boost to
families and dependents in India. In anticipation of sustained demand, the company has ensured adequate liquidity
across its branch and digital network, introduced special promotions, and increased staffing at high-volume locations.

Analysts said GCC remitters are taking full advantage. Many see this as an opportunity not only to support household
expenses but also to contribute to long-term investments in property, education, or business ventures in India.

Currency strategists caution, however, that exchange rates can reverse quickly if global sentiment shifts or if the Reserve
Bank steps in more aggressively.

They said in 2025 when India’s remittance inflows are expected to remain above $130billion, the rupee’s weakness is
adding a timely boost for millions of recipients.

For UAE expatriates, the maths is simple: the weaker the rupee, the stronger their remittance impact.

The UAE is one of the world’s largest sources of remittances, with India consistently ranking as the top recipient.

According to the World Bank’s latest Migration and Development Brief, India solidified its position as the world’s leading
remittance recipient, with overseas workers sending a record $129.4 billion — a figure boosted by an unprecedented $36
billion in the December quarter alone, per the Reserve Bank of India (RBI).

GCCwide remittance outflows dipped slightly by 0.4 per cent in 2023 to $131.5 billion, reflecting post-pandemic
adjustments and policy shifts, such as Saudi Arabia’s decision to allow migrant families to relocate, reducing the need for
cash transfers home.

Despite this, the UAE stood out, contributing $21.6 billion to India —19.2 per cent of its total inflows —making it the
second-largest source globally after the United States. A rupee-dirham payment pact has streamlined transactions,
enhancing the UAE’s role.
The Reserve Bank of India’s data shows that the UAE is among the top three sources of inward remittances to India,
alongside the United States and Saudi Arabia.
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