By Staff writer
Exchange houses report rise following clampdown on ‘black money’ and weak rupee
Remittances from Indian expats in Qatar have been said to rise by 15 percent following a government crackdown on ‘black money’, according to local media.
The government has in recent months instigated a crackdown on black money and counterfeit bills, and industry sources told Gulf Times that this had driven a rise in remittances from Indians in Qatar.
The newspaper quoted Anand P Jakati, a senior manager with Al Mana Exchange, as saying: “In the last two weeks, remittances from Indian expatriates have increased. At least in our branch, it had gone up by [between] 10 percent and 15 percent. But only for this period, of course.”
Qatar-UAE Exchange country manager Mathai Vaidian said rates had gone up by at least 5-10 percent since the government crackdown.
He was quoted as saying: “This is a very good initiative on the part of the government to control black money and counterfeit notes.
“Initially, there would be some inconveniences to the customers but in the long term it will be an advantage to the government and the public.”
However, he pointed that another factor behind the rise in remittances was higher exchange rates due to a weaker rupee.
“Because the value of the rupee has gone down, many people are benefitting from higher exchange rates,” he said.
Sources reported that Indian remittances patterns were stable since India’s prime minister Narendra Modi announced the demonetisation of the Rs500 and Rs1,000 bills from November 8.
Indian currency has declined significantly, remittances may have been high due to that too..