Few UAE residents remembered a time when 'Gulf rupee' was the currency used in the UAE.
Published: Thu 4 Oct 2018, 5:15 PM
As the rupee continued to plunge into record lows of Rs20.08 against the UAE dirham, many Indian expatriates are taking advantage of the low rates to remit money back home.
Interestingly, some of the older UAE residents remember a time when foreign exchange houses were used only to exchange currencies, and the 'Gulf rupee' was the currency used in the UAE. Businessman Maghanmal J Pancholia, one of the oldest Indian expatriates in the UAE, has been here since 1942. He explained that the UAE Dirham was introduced only in 1973.
"The Gulf rupee was a currency used in the countries of the Arabian Peninsula between 1959 and 1966. It was issued by the Government of India and the Reserve Bank of India, and was equivalent to the Indian rupee," said Pancholia.
As oil trade boomed, so did the value of the dirham, he explained. "There were not too many remittances to India back then. There was a tiny Indian population in the UAE and the trend of sending money was non-existent. Foreign exchanges were used only for trading currencies," he said.
Pancholia added: "When the Indian population in the UAE exploded, the oil industry blew up and trade began to grow, more exchange centres cropped up across the country, and over time, remittances gained popularity."
Owner and photographer of Four Seasons Ramesh Gallery Ramesh Shukla has been living in the UAE for 40 years. He said: "I used to send money to my parents, and would send anything between Rs20,000 to Rs1,00, 000. If memory serves me right, there was a time exchange rate was at Rs5, and I remember it rising to Rs8.54 in 1995."
He added: "Today, expatriates who have cash in-hand will be able to send money home. However, it's not the same for all. Some are retaining money in the UAE due to rising expenses," he said, adding that though the surge in the exchange rate is good for expatriates it's bad for the economy.
According to historical forex data on investing.com, on October 3, 1994, the dirham to Indian rupee exchange rate was at Dh8.54, and on September 14, 1995, the value rose to Dh9.24.
Many young, second-generation Indian expatriates remember a time when their parents got Rs8.5 to Rs10 for a dirham in their childhood. A marketing professional in Dubai Sanoodh Sattar said: "My dad used to send approximately Dh1,000 every month to his family home. It would fetch an amount nearing Rs11,000. That is not the case when I send money today. I get nearly Rs20,000 for the same amount. It is good for people like me, but not very good for India."
Another expat Disha Jeevan, a Dubai- resident and housewife, said: "During my school days, my dad would send Dh500 to India. That was Rs5,000 per month. When I send Dh500 now, its nearing Rs 10,000."
Public relations professional Sunil Roy said: "I usually send money once in a month or once in two months. I used to send Dh3,000 to Dh4,000 regularly when my daughter was studying in India, depending on her requirements. I also send money to meet some family commitments."
He added: "The falling rupee rate can be a good saving tool. I do not think I will send more, but whatever I send will give me more. It gives me an opportunity to save more money here."
dhanusha@khaleejtimes.com
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