UAE-based Indians could lose big on transfers: Here’s why

UAE-based Indians are facing a potential financial setback as the Indian rupee shows signs of strengthening against the UAE dirham. This shift in currency dynamics could significantly impact remittances, which form a crucial part of income for many families back in India. Traditionally, a weaker rupee has allowed expatriates to send more money home, but the current trend suggests that the value of their transfers could diminish if the rupee continues to gain ground. Several factors are contributing to this currency fluctuation, including recent economic measures taken by the Indian government to stabilize and boost the rupee. Additionally, global market trends and geopolitical developments have played a role in altering the currency exchange rates. As the rupee appreciates, the conversion rate becomes less favorable for those sending money from the UAE, potentially reducing the amount received by beneficiaries in India. Financial experts are advising UAE-based Indians to closely monitor exchange rates and consider delaying large remittances until the market stabilizes. For those who rely on these funds for essential expenses, this could mean reassessing budgeting strategies and exploring alternative financial solutions. As the situation evolves, staying informed and making strategic decisions will be crucial in navigating these uncertain economic waters.

— Authored by Next24 Live