Weak currencies pose a challenge to remitters

The relentless decline of South Asian currencies to record lows against the dollar poses significant challenges for remitters in the GCC to India and other Southeast Asian nations.

- Issac John

While the potential for further depreciation of Indian and Pakistani rupee as well as the Philippine peso looms, expatriates in the Gulf should wait for more favourable conditions before executing larger transactions, currency experts said.

They warn that as the dollar to Indian rupee exchange rate plunged to a record low of 86 or 23.5 against the dirham recently while forecast indicates a potential maximum rate of 89.138 in 2025 and an all-time high of 101.537 by 2029, remitters must remain vigilant and adaptable in their strategies.

Money exchange houses and bankers expect the coming years would be critical for the rupee, and call for proactive measures to navigate this volatile currency landscape successfully.

The depreciation of these currencies occurs amidst a broader context of a strengthening dollar index, which has surged by 8.0 per cent in the past three months alone, from the end of September 2024. Currency experts estimate the Pakistani rupee to trade at 284.92 in 12 months time while the Philippine peso is estimated to trade at 59.98 in the same time frame.