Remit Rush: Why UAE-Based Indians Are Transferring Money Home Now!

As the Indian rupee experiences a decline against the UAE dirham, Indian expatriates are seizing the opportunity to remit funds back home. The recent market movements have created a favourable climate for NRIs to transfer money, reversing the typical trend of decreased remittances during the summer. 

Why Are Indians Rushing to Send Money Home Now? 

The Indian rupee has depreciated against the UAE dirham, reaching a historic low of ₹23.5 per AED, the weakest level seen since early April 2025, as per a report by Gulf News. This has significantly altered remittance behaviour among non-resident Indians (NRIs), who are acting swiftly to send funds before the exchange rate shifts again.

Currency exchange houses across the UAE and wider Gulf region have reported a noticeable surge in remittance activity since June 19. With the prospect of even further weakening of the rupee, many expats are taking no chances.

Seasonal Trends Disrupted by Forex Opportunity

June traditionally marks a slowdown in remittances as Indian expatriates allocate more funds toward summer travel and family vacations. However, the weakening rupee has reversed this pattern in 2025.

This year, high remittance volumes have continued consistently over the weekend, with expectations of a sustained trend into Monday and possibly into July.

Typically, NRIs might delay sending money in anticipation of slightly better exchange rates or to manage personal and travel-related expenditures. But given the current favourable conversion rate, many have opted to remit any available disposable income without delay.

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AED-INR Surge Driven by Strategic Timing

For Indian expatriates earning in Emirati dirhams, a lower INR rate means more rupees for each dirham transferred. Essentially, when the rupee is weak, NRIs get greater value upon conversion. The recent spike to ₹23.5 per AED provides a strategic window many are eager to capitalise on.

Exchange officials across Abu Dhabi, Dubai, Sharjah and beyond reported that individual remittances rose significantly in value and volume. One official noted, “It’s a double win if rates stay where they are or dip slightly again. People are reacting fast.”

Interestingly, this trend has become more pronounced in regions with large Indian populations, such as the UAE and Saudi Arabia, where AED and SAR (Saudi Riyal) conversions have seen steady upticks.

Currency Impact Amid Geopolitical Uncertainty

While geopolitical tensions, notably between Iran and Israel, typically drive investors toward the US dollar, 2025 has seen gold assume the role of the preferred safe haven. This shift has left the US dollar somewhat muted, which ironically supports the rupee’s relative value.

However, the rupee remains under pressure due to broader macroeconomic factors including trade imbalances, foreign outflows, and inflationary pressures in India. Despite these concerns, NRIs are timing their remittances precisely to get the best out of this forex dip.

Exchange Houses Reporting Unusual Trends

According to a news report, several major exchange operators have shared that June 2025 is shaping up to be one of the most active periods of the year in terms of AED to INR currency remittance volumes. The consistent volumes across multiple regions are defying calendar-based expectations.

Exchange house employees noted families typically reduce financial transfers during summer or festive holidays to manage personal spending. However, this year, the weakened currency has overridden those behavioural norms.

This unexpected but sustained inflow could also have wider implications for India’s foreign reserves and balance of payments if the trend continues for a prolonged period.

Remittances as a Key Driver of Indian Economy

Remittances from NRIs are a vital component of India’s foreign exchange reserves and play a crucial role in household consumption, investment, and social mobility.

In 2024, India received over $125 billion in remittances — a global record — and UAE-based NRIs contributed substantially to that figure.

Even a marginal strengthening in AED-INR rates can translate into sizable benefits for Indian families receiving funds, especially in rural and semi-urban areas where remittances are a lifeline. While such surges are surely positive in the short term, long-term sustainability depends on consistent economic growth and exchange rate stability.

Conclusion

The decline in the Indian rupee to ₹23.5 per AED has created a favourable remittance environment for NRIs in the UAE and Gulf countries. With currency exchange houses reporting record volumes and many expats sending money before rates fluctuate again, this moment marks an unseasonal but strategic surge in remitted funds.

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