KHALEEJ TIMES, Tuesday, Jul 10, 2018 | Shawwal 26, 1439
Expats cheer dirham gains
If you're an Asian expat
in the UAE and a big-ticket remitter, hold your cash because the UAE dirham will
strengthen further against the currencies of India, Pakistan, Sri Lanka,
Bangladesh and the Philippines in the second half of 2018, say currency
The Emirati currency strengthened in line with the
US dollar against Asian and emerging market currencies during the first half of
this year, helping expats to remit more money with less dirhams during the
The Indian and Pakistani currencies have been
consistently hitting new lows over the last few months with the former reaching
18.8 against the UAE dirham last month while the Pakistani rupee has plunged
Similarly, Bangladeshi taka dropped to an all-time
low of 23 against the UAE dirham in mid-June and Philippines' peso declined to
14.6 last month.
Going forward, Promoth Manghat, CEO, UAE Exchange
Group, believes that the UAE dirham will strengthen due to more Fed rate hikes
in the US.
"When the dirham strengthens, Asian expats are
bound to remit more as was witnessed in the first quarter of 2018," said
Currency analysts predict that the UAE dirham will
continue to strengthen in the second half of this year, hence, advising
big-ticket remitters to hold their cash for now and remit a bit later when the
same dirhams will fetch more currency on remitting.
"As we enter the second half of trading for 2018,
the outlook for emerging markets does not look positive," said Jameel Ahmad,
global head of currency strategy and market research at FXTM.