Did you know that getting competitive currency exchange rates can positively influence the amount and frequency of money you send home?
As an expat, ensuring your loved ones receive the maximum value for every unit of the currency remitted, is always important. While there are several factors that determine the amount of money that actually reaches your family, the US Dollar (USD) movement is a key one to track. If you are living in the UAE and need to send money home, it’s important that you be aware of the influence USD has on your currency and hence figure out the best time to remit money. Three points to keep in mind on why you should watch the dollar movement before you remit are:
- The United Arab Emirates Dirham (AED) is pegged to the USD, hence a strong dollar ensures higher amount of remitted money. Minor fluctuations do not make a massive difference to smaller remittances.
- If your home currency loses ground against both the USD and AED, and you are a remitter in the UAE, then that would be the best time to send home money & load your cash card because each dirham will yield more in your destination currency.
So if you are home currency is Indian Rupees (INR) and it falls against the USD and AED, then send money home. Your family will get more money in hand!
- The volatility of the USD is important in the context of the nature of remittance. For e.g. if you are remitting money as an EMI to buy a property in your home country, it may be prudent to speak with yourauthorised money exchange service provider to explore contracted options to cover the risk.
It is also important to take advantage of the right window of opportunity when it presents itself, such as the recent strengthening of the USD against Asian currencies that resulted in a strong outflow of remittances from the UAE.
Exchange rates are ever volatile, so before you remit money, make sure you are well aware of the exchange rates and determine how much money will be received by your family. Send money only through reputed money transfer service providers who offer the best competitive exchange rates. Don’t lose money anymore to unscrupulous rates. Plan well ahead and remit at the right opportune time!