While this historic fall in the rupee has prompted some Indian expats to remit funds back house, other people are holding on to their rials owing to two principal elements – the expectation that the rupee will fall additional to touch 200 to the rial mark and delayed salaries which has turn out to be commonplace across numerous sectors in the sultanate.
Depending on the profile of their typical clientele, exchange homes are reporting brisk company at 1 finish of the spectrum to only a marginal boost in remittances at the other finish owing to wary consumers unwilling to take benefit of the scenario.
Explaining the elements playing in this fall in worth of the rupee, Boban MP, CEO of Oman UAE Exchange, stated, “This decline can be attributed to the
US-China trade war, price hikes by the US Fed, financial turmoil in Turkey and Argentina, the US sanctions planned against Iran, increasing oil costs, and India’s widening trade deficit.”
According to Boban, with the Indian currency depreciating, remittances to India have improved. “Indian expats can be seen queuing up at financial houses to avail best exchange rates and transferring large sums of money back home.”
He also informed that with crude oil costs and worldwide political circumstances dictating the status of the rupee in the subsequent couple of months, he foresees the Indian rupee to slide additional in the coming weeks.
An official at Purshottam Kanji stated the exchange has been seeing white-collar workers taking benefit of the remittance price.
“But they are holding on to some part of the money, expecting a further fall of the Indian rupee. It’s likely to touch R200 against RO1 though not overnight,” he added.
At Global Money Exchange, company hasn’t noticed a drastic alter.
“We have witnessed only a marginal increase in the number of customers as the majority of those who come to us for remittance are blue-collar workers. They send money back home every month irrespective of the rupee rate. But yes, they are happy when they get a higher value for the same amount they send owing to change in exchange rate,” R Madhusoodanan, common manager of Global Money Exchange, told Muscat Daily.
Echoing the observation, Philip Koshy, nation manager of Modern Exchange, stated remittances have not been substantial since its customers have to send funds back house irrespective of the exchange price.
“Of course, they are happy now with the current rates. However, for investors, they are waiting for the best deals and in my view, the demand for dollar is now high in India.”
The fall is noticed amid a surging demand for the dollar, the international benchmark for oil trade. Oil sold as higher as US$76.1 per barrel final week.
“A major factor which is contributing to the Indian currency’s fall is that the Indian market is aligned with the global market in terms of crude oil prices. As crude oil prices go up, the dollar strengthens leading to a fall of the rupee because India needs to buy crude oil in dollars,” stated P K Subudhi, GM, Mustafa Sultan Exchange.
Among these unable to take benefit of the existing exchange price is a organization executive whose salary has been delayed. “I hope the rate remains high till I get my salary.”
Another executive Syed Aleem, who is primarily based in Muscat, stated, “I send money for my family mostly at the end or beginning of the month when I receive my salary. Sometimes the Indian rupee falls and we get a good rate. But obviously I don’t earn that kind of money that I can save here and wait for a good time to send it back.”
Information Source: Muscat Daily