> Weakening rupee spurs money transfers
UAE-based expatriates from India and other south Asian nations boosted remittances to their home countries by nearly 15 per cent in July, taking advantage from the weakening rupee against other currencies.
The annual summer holidays also helped spur such remittances by the more than two million south Asian nationals residing in the second largest Arab economy and accounting for over a quarter of its population.
Money exchange figures showed the sharp rise in July compared to the same month in 2011 followed a record fall in the Rupee, which hit a low of 57.32 against the US dollar towards the end of last monthly.
“The decline and the summer holidays led to an increase in remittances by south Asian nationals, mainly Indians, by nearly 15 per cent last month compared to the same month of 2011,” Dubai-based Albayan Arabic language daily said, quoting Sudesh Giriyan, Vice President, Xpress Money, UAE Exchange Dubai.
He said the fall in the Rupee was a result of a high budget surplus in India, slow growth and lack of progress in fiscal reforms.
“Other factors include an increase in demand for the US dollar and the Euro crisis…the surge in remittances has benefited money changers in the UAE.”