Remittance to India: It is clear that a large number of Indian population is residing outside India and in this way, Indian expatriates are the biggest remitters of money to their homes in India from all over the world. A large number of Indians work around the world and support their families back at home.
According to 2017 reports, nearly 69 billion dollars were sent to India by Indian expatriates from all over the world. The Indian expatriates would be getting more for the same amount that they earn as the Indian rupee takes a dive against the US dollar.
Indian Rupee all-time low: On Sep 06, 2018, the Indian currency hit its lifetime low of 71.95 per US dollar. It has been devaluing since the start of 2018 when it was 63.84 per US dollar. This also takes the Indian rupee to 19.18 per Saudi Riyal.
This means that the Indian expatriates remitting money to their homes would be getting more for the same amount due to which there has been an increase in a number of transactions at remittance centers.
Why is the INR falling down? The high crude oil prices have been the main reason for the devaluation of currencies of Asian countries. Recommended: How far will Pakistani Rupee fall?
As India imports around 200 million tons of crude oil, with every $1 price increase of crude oil, the Indian government has to pay $1.5 billion additional money.
India also has a huge balance of payment which also adds to the deteriorating economic conditions. Imports in India continue to increase as people do not stop importing items even though the Government has imposed a huge amount of taxes on them.
How far will the Indian Rupee Fall? The situation is expected to worsen and analysts predict that the Indian rupee would hit 75 against the US dollar in the near future.
The devaluation of currency will also affect the prices of goods in India. With the rupee falling against the dollar since the start of 2018, India would surely come up with a way to stop this downfall soon enough.
What can Non-Resident Indians do to manage their savings? The dive of the Indian rupee against the dollar concerns many overseas Indians. Many of them have lost a lot of money due to foreign exchange losses.
The best approach in these days is to keep your entire savings either in the country you have been living in or open a foreign currency bank account in India and remit over there in USD. In this way, you will avoid the risk of devaluation of the currency.