Remittances to India on the rise
Manama, June 2, 2013
Indian residents in Bahrain are remitting more cash back home as the value of the rupee against the dinar continues to slump.
The dinar, which is pegged to the US dollar, has been strengthening against most international currencies on the back of a strong showing by the American currency but the rupee has been hit particularly hard because of local issues in the sub-continent, reported the Gulf Daily News, our sister publication.
"The rupee is now at a 10-month low against the US dollar," said Bahrain India International Exchange general manager Narasimhan Lakshmi.
"As a result of this, Indians in Bahrain have been sending more money home when they get far more rupees for their dinars. The amount of remittance payments going back to India from Bahrain is now up about 50 per cent of the rate of a year ago."
"The dollar has strengthened against most currencies across the world but the rupee has been particularly weak. This has been caused by a combination of what is seen as recent political instability combined with concerns about the high level of the current account deficit," said L:akshmi
Nonoo Exchange has also experienced an increase in the number of transactions as the rupee has weakened against the dinar.
"There has been an increase in the level of remittance transactions to India of late," said marketing manager Binoy Simon.
"This is not unusual as there is normally a hike as the rupee weakens against the local currency. But we may see even more money going back to India in the future," he remarked.
"There are probably a number of people sitting on dinars at the moment who are waiting for the rupee to fall further before making transfers back home," he added.-TradeArabia News Service