Pakistani expats are rushing to money exchanges to send money home in the wake of fall in value in the rupee, according to the activity registered by the UAE’s trade body of money exchanges and foreign currency remitters.
“We’ve observed a considerable spike in the number of currency payments from the UAE into Pakistan,” Rajiv Raipancholia, treasurer at Foreign Exchange and Remittances Group (FERG)
Pakistan is among the top four destinations for remittances out of the UAE.
The country received nearly $20 billion in remittances globally, the country’s second biggest source of income after exports, according to statistics from the State Bank of Pakistan. Nearly half of the remittances come from the Gulf region.
However, under pressure from falling exports and a balance of payments deficits due to shrinking foreign currency reserves, the country allowed its currency to devalue and find a rate closer to what the market for currencies would dictate.
Even steeper declines were possible, said Rachanpolia. “The currency could drop to 10 percent with respect to the dollar. Even the three percent fall we witnessed on Monday was enough to spike remittances.”