Local currency exchanges are bullish about growth in remittance volumes this year, thanks to an expanding UAE economy and weakening Asian currencies.
Wall Street Exchange yesterday announced plans to expand its network to 40 branches this year, as it opened its 29th branch in Baniyas, Abu Dhabi.
UAE Exchange said that it plans to open as many as 10 more branches across the country during the year.
“2013 was an excellent year for us,” said Promoth Manghat, UAE Exchange’s vice president for global operations. “Remittances from the country grew healthily, especially given the creation of additional jobs, as well as the weakness in a number of Asian currencies.”
The Indian rupee last year fell by 11.4 per cent against the dirham, while the Philippine peso fell by 7.4 per cent, according to Bloomberg.
Dubai’s Expo 2020 win and increased government spending across the UAE will pull in more foreign workers and increase remittance totals, said Wall Street Exchange’s managing director, Sultan bin Kharsham.
“Economic growth is gradually accelerating. This could translate to an increase in salaries and that could translate to a higher consumer spending and remittances,” he said.
Leading exchange houses increased fees in January for remittances of more than Dh50,000 to India, the Philippines, Nepal and Sri Lanka to Dh20 from Dh15.
The move, taken by exchange houses belonging to the local industry body the Foreign Exchange & Remittance Group, was in response to rising overheads, said Mr Manghat.
“We’ve kept the cost of remitting money broadly untouched for the past 20 years, even though our overheads have gone up sharply,” he said. “It’s just a nominal increase on our part.”
Volumes have been largely unaffected by the move, said Mr bin Kharsham.
“Despite the changes in rates, people will continue to remit money to beneficiaries due to social and economic needs,” he added.
jeverington@thenational.ae
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