Expats send less money home amid downturn

CASH FLOW: The average monthly remittance has fallen amid the slowdown. (Getty Images)

Expatriate workers are sending home less money each month as the recession eats into earnings, it has been reported.

According to an article in the Khaleej Times, the average remittance sent home each month by Indians, Filipinos, Pakistanis, Bangladeshis and Sri Lankans has dropped from AED2,200 a month last year to AED2,000 this year.

“The amount of their remittances has dropped. But, there is still a slight increase in the overall volume of money remitted in the first half of 2009,” an unnamed exchange centre official told the paper.

“In our discussion with our partner bankers, we have come to the conclusion that this time, a remitter will just send to his wife or to his mother if single. Before, a single remitter used to send to at least three or four family members and relatives in a month,”
 another official, who also asked not to be named, said.

Sudhir Kumar Shetty,  chief operating officer-Global Operations, UAE Exchange, told the paper: “The fluctuating exchange rate amidst the economic downturn has played a positive role in improving slightly the overall volume of remittances from expatriates and traders in the UAE.

“However, the rebounding of construction sector will revive the remittance growth rates.”

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READERS' COMMENTS

More sensible measuring method
Posted by Christiane on Sunday 13 September 2009 at 14:27 UAE time


The figures to be compared should be based on value of money sent per person...i think the number of senders have dropped , due to the drop of number of unemployed people or due to less populated UAE.The value of 2M is not kept in uae, i think it is not even earned!!

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