Dubai: As the value of the Indian rupee continues to fall, expatriates are in trouble. Expats are excited to get double the value for their work. They are sending money to the country in large numbers. All currency exchanges are very busy.
Employees of exchanges in UAE testify that not only Indians but also people from Pakistan, the Philippines, and European countries are sending money back home in large quantities. The value of the rupee is likely to fall in the coming days. Reports also suggest that the comeback will be a bit late. Here are the details…
The strengthening of the dollar has weakened the rupee. It is estimated that the rupee will not be able to recover quickly. Moreover, rising oil prices are another factor. This, in turn, will lead to an increase in the prices of essential commodities. Gold prices are rising as investors are gradually looking for gold.
Currency exchanges in the UAE say that expatriates are now sending home twice as much as they normally do. Hasan Fardan, head of Al Fardan Exchange LLC, responded that people from Asian countries and Europe working in the UAE are taking advantage of the opportunity.
Compared to the figure at the beginning of this year, there has been an increase in the value of the dollar by 15 percent. The Omani Rial exchange rate has reached an all-time high of 213.25. If you want to get a thousand rupees, you have to pay 4.68 riyals now. 194 per riyal during the same period last year. On Friday, it traded at Rs 82.33 per dollar.
At the same time, some x-pats tend to be very intelligent at these stages. Thinking that the value of the rupee will further fall, they will not send the money they have in their hands back home. It is expected that the value will fall further. This is a speculative move. Maybe this is true. The opposite can also happen. Indications are that the Reserve Bank will soon take action to raise the value of the rupee.
Depreciation of the rupee is a positive factor for the expatriates but it is a big crisis for the locals. Prices of essential commodities will rise sharply. The main factor for this is the rise in oil prices. OPEC countries are cutting production to raise prices. If the price of oil goes up, Indians will get a big blow. Because India depends on imported oil.
India is looking for places to get cheap oil. India now imports more oil from Iraq and Russia. Saudi Arabia has been relegated to third place. Along with this, India has started investigating oil imports from African countries and Latin American countries.