News headlines

DUBAI: Sep. 23: The sharp appreciation of rupee against US dollar has hit the NRIs in the Gulf hard at a time when the skyrocketing cost of living has already slashed their savings.

The UAE currency Dirham is pegged to the US dollar which has depreciated heavily as currency markets have dumped dollar in favour of other stable currencies. The rupee has risen sharply against the dollar recently.

In many of the GCC states like UAE, Qatar and Bahrain the cost of living has shot up mainly with house rents doubling in the last two years. The construction boom, which has placed hundreds of freehold residential properties in the open market has not helped as they are
all high value offerings.

Last year, inflation rates in UAE hit a 19-year high of 9.3 per cent. A larger number of expatriates working in the country are losing a major share of their earnings to inflation and currency depreciation. 

"The Indian rupee has gained more than 14 per cent against dirham from the beginning of the year. The exchange rate losses, combined with the domestic inflation in the UAE is wiping out more than one third of the earnings of Indian expatriates working in the UAE," Sudhir Shetty, General Manager of UAE Exchange Centre, told Gulf News.

European, British, Swiss and Canadian expatriates too have  suffered heavily due to depreciation of dirham. The dirham fell 17 per cent against the euro from December 2005 to end of August 2007 and a 16 per cent against sterling.


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Comment on this article

  • Ancy Paladka, Mumbai

    Mon, Sep 24 2007

    In fact the RBI tries its best to stop appreciation of INDIAN RUPEE to console Indian Exporters. But it goes beyond its control as INDIA is growing very fast. I suggest our NRI's to return back to the homeland India as I have done.

    Today India is a nice place to work. All our talented resource is abroad. If our people come back to INDIA the dream of making INDIA A SUPER POWER will be acheived faster.

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  • T ShivaPrasad Ariga, Oman,Kudla

    Tue, Sep 25 2007

    What about returning back home? Its not far away ,looking at the pace at which India is growing.

    DisAgree Agree Reply Report Abuse

  • Aadil Khan, Kasaragod, Dammam, Saudi Arabia

    Mon, Sep 24 2007

    Indian Governement should come forward to protect Gulf NRIs from the loss they incur from the exchange rates due to the weak Dollar. Recently, in a bid to provide relief to exporters hit by hardening of Rupee, the government exempted from tax on services rendered by ports, road transport and railways by 12%.

    Not only that in July, the Finance Ministry had provided a financial package of Rs 1,400 crore to exporters, especially to the textile, handloom, handicraft and other labour-intensive industries, to cushion the impact of rupee appreciation.

    As the consistent fall of dollar continues, we those working here in the Gulf countries are severely hit. Therefore, the Uniion Govt. should introduce some special exchange rate mechanism for the remittances received in the banks in India from Gulf NRIs. It sounds bit weird and impractical but the Ministry of Finance's intervention is imperative and need of the hour.

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  • Mohan H Naik, Mangaluru

    Mon, Sep 24 2007

    This is not the end of the story. The dollar in coming days will continue to slide.All NRI'S need to think to safeguard their hard earned, corruption free money.Lets hope Dollar will be delinked with Gulf currencies.One solution is to avail bank loan for 4-5 yrs term so at least present exchange rate is utilised to maximum extent compared to coming days reduced rate.

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