The British pound fell to a record 31-year low against the dollar on Wednesday, leading to a sharp increase in remittances from UAE expatriates to the UK.
Sterling fell to $1.20 before rebounding to just above $1.21 by Wednesday evening – reaching its lowest level excluding the flash crash on October 7 last year.
Dutch Rabobank said the economic policies of US President-elect Donald Trump have boosted hopes in markets, strengthening the US dollar while British currency is coming under consistent pressure as a result of uncertainty regarding Brexit.
Promoth Manghat, chief executive officer, UAE Exchange Group, said the decline in currency lead to a 25 percent jump in remittances to the UK and Europe compared to daily volumes.
“We have always witnessed a spike in remittances when the major currencies weakens against the US dollar. Yesterday was no different as we saw remitters cashing on the favourable exchange rate and remitting to UK and Europe,” he said.