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HYDERABAD: A weakening rupee has brought much cheer to expats living abroad and the large Indian population in the Gulf couldn’t be happier. Remitting a large part of their salary back to India, they are happy as this now converts into more rupees back home.
 
According to informed sources, banks in the city have seen as much as a 50% increase in their monthly appreciation as Indians are clamoring to send more money back. The more enterprising ones are even seeking advances and transferring the same to India.
 
There are more than six million Indian expats in six countries of the Gulf area of which 15 lakh are estimated to be from Andhra Pradesh. Most of them are in blue collar jobs. Those in high paying white collar jobs are now seeking advances on paychecks while the business community is reportedly remitting a bulk of their savings.
 
GRC Prasad Sai, in-charge NRI cell at State Bank of Hyderabad, told TOI that the rise and fall of rupee dictates the amount of remittance. Terming the high remittances as one of the factors for increase in their inflows, he says, "Ever since the interest rates for NRIs were deregulated in December last year, we have seen a growth. But an increase of Rs 30 crore in the month-on-month growth on our base in April when compared to March, gives a strong indication that remittances have increased. Given the situation and anticipatory effect of rupee further weakening, the trend may continue," he predicted.
 
M Bheem Reddy, vice-president, Migrants Rights Council, notes that the rupee value is of great interest to both the white collar and blue collar employees. "The depreciation in rupee is always welcomed by expats. Since the value of Gulf currencies does not change with dollar, both the appreciation and depreciation are absorbed completely by the expatriates. When the rupee gained significantly in the past, workers were known to have protested demanding a hike in salary, which happened in 2008 in Dubai," he said.
 
The joy in the depreciating rupee is however not without caution. K Anjaneyulu, manger with Xpress Money, a money transfer organization in Dubai says, "The AED (Arab Emirates Dhiram) is now Rs 15 and that is reason enough to be happy. But the recent hike in cost of petrol and double digit inflation can nullify any gains that we make abroad. Given the continuous increase in cost of living here and the scope for the rupee to appreciate in the near future, our profit making could be short lived," he said.