Page 75 - AAE PR REPORT - November 2024

increase in transaction numbers from September to October. Bangladesh transactions
increased also by 32 per cent month on month as well," added the representative.

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On Monday, the Indian rupee weakened to its lowest level on record with likely
intervention by the Reserve Bank of India (RBI) helping off a sharper decline.

"The recent US elections have had a profound impact on global financial markets,
driving up the US dollar and leading to a sharp decline in several Asian currencies," said
Adeeb Ahamed, Managing Director of LuLu Financial Holdings. "This shift has triggered
an increase in remittance volumes particularly in the UAE, with customers taking
advantage of favourable exchange rates to send money back home. Remittances from
the UAE to India have risen, with increases observed in other corridors as well."

He explained that expats had responded positively to the market changes. “The ability
to maximize the value of funds transferred to families and communities in their home
countries underscores the critical role of efficient remittance services during such
economic shifts," he said.

Meanwhile Ali Al Najjar, COO of Al Ansari Exchange, said it was too soon to predict
trends accurately.

“Although the recent depreciation of the rupee, peso, and other Asian currencies is
notable, it may be early to witness substantial shifts in remittance patterns,” he said.
“Most Asian currencies have been trading lower. Additionally, the rising dollar index
highlights broader market changes. With the UAE dirham being pegged to the dollar,
this gives the UAE currency greater power, allowing residents to maximise their
remittance value in comparison to other currencies that may fluctuate.”

However, he added that the exchange house expects an increase in remittances soon.
“With the holiday season approaching, we anticipate a remittance increase of around
five per cent in the coming months, as expatriates may look to take advantage of
favourable exchange rates and send remittances back home to their families,” he said.

“It is important to note that given the prevailing market volatility, many individuals remain
cautious, potentially delaying remittances until conditions stabilise.”

Remit or hold?

However, according to experts, it may not be just yet time to remit. “All in all, the
election of Donald Trump significantly strengthened the bullish tale in the dollar, which
has already priced in large perceived changes in the expected path of the US fiscal-
monetary policy mix and the looming tariff issues,” said Vijay Valecha, Chief Investment
Officer, Century Financial. “As 2025 approaches, the dollar seems to continue riding a
confirmed bullish trend. So, it would be better to wait a while before remitting.”

https://www.khaleejtimes.com/business/markets/uae-time-to-hold-or-send-surge-in-remittances-
to-india-philippines-after-trumps-win