Expats rejoice as Indian rupee plummets

May 30, 2013

Expats_rejoiceJeddah, May 30: The Indian rupee dropped to its lowest level in 10 months and one Saudi riyal was fetching almost Rs. 15 yesterday. "My remittance fetches more rupees now." This is how the average Indian expatriate is reacting to the situation.

However, some Indian expatriates felt the falling trend of the rupee will have an adverse impact on their national economy in the long term.

"Yes, in the short term we are gaining here because our Saudi riyals are fetching more Indian rupees. No doubt about it, but it will have a very negative impact on the Indian economy. So in the long term we'll suffer there in India," A. Kadir Khan, who is living in the Kingdom for over 20 years, said.

The partially convertible rupee closed at 56.17/18 per dollar compared to 55.9550/9650 on Tuesday. The unit fell to as much as 56.37, its lowest since July 25, 2012.

"This has come in as good news to me because I have been wanting to remit a substantial amount to India," said Zabihuddin Akhtar, an accountant. "This will fetch me a good rate."

Akhtar knows full well that a depressed rupee is not good for the Indian economy. "But I am thinking of what is beneficial to me at this moment," he said. "At a time when our salaries have remained stagnant, such fluctuations are like artificial bonuses for us non-resident Indians."

John Sfakianakis, chief investment strategist at Masic in Saudi Arabia, said the dollar has entered bullish territory and from here on it will appreciate against most currencies.

"For Saudis and expatriates it translates into more purchasing power abroad or when they remit and hopefully cheaper imports or at least not a spike in imported goods over a period of time. This should also be reflected in the rest of the GCC as the dollar forms the bulk of cross border transactions," he said.

Jarmo T. Kotilaine, a regional analyst, told Arab News: "The global economy still faces numerous risks and currency dynamics can be subject to significant short-term influences. Even though many emerging Asian currencies are likely to continue to appreciate over the coming years, this trend may be contained or even reversed by current positive momentum of the dollar."

However, he said the greenback is benefiting from growing signs of what looks like a fairly sustainable — albeit perhaps not very impressive — recovery. This is fueling speculation of exit strategies from the current quantitative easing strategies of the Fed. Even if any actual change will likely prove extremely gradual, this prospect is likely to continue to influence expectations in a way that is favorable to the dollar. By contrast, for instance, India has been loosening its monetary policy and is yet to regain its previous growth momentum.

Recent years have shown that exchange rate fluctuations can have a significant impact on remittances, most notable in terms of their timing.

"With time, the continued appreciation of Asian currencies will likely begin to put pressure on expatriate salary expectations by potentially reducing the number of people willing to come and work in the Gulf. Higher living costs in the Gulf will have the same effect. This should over time reduce the gap between expatriate and local salary expectations in a way that should favor more local employment," Kotilaine added.

He said a degree of volatility between the riyal and many Asian currencies is the result of exchange rate policies based on a free or managed float in many Asian economies. "People with an element of discretion in terms of the timing of remittances tend to increase them when the Asian currencies depreciate as this increases the purchasing power of the transfers in their home countries. Under the opposite scenario, there is a greater likelihood of retaining funds longer in the Gulf in the expectation of a more favorable rate in the future."

The rupee has so far in 2013 failed to benefit much from the nearly $ 20 billion worth of inflows into equities and debt, according to Reuters.

The index of the dollar against six major currencies was down 0.6 percent when the rupee closed.

In the offshore non-deliverable forward PNDF, the one-month contract was at 56.53 while the three-month was at 57.11.

In the currency futures market INRFUTURES, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 56.47 with a total traded volume of $ 5.50 billion, Reuters reported.

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News Network
March 11,2020

Riyadh, Mar 11: Energy titan Saudi Aramco said Tuesday it will boost crude oil supplies to 12.3 million barrels per day in April, flooding markets as it escalates a price war with Russia.

Riyadh had already slashed its price for April delivery after Russia refused its proposal that producer alliance OPEC+ orchestrate a co-ordinated cut of 1.5 million barrels per day.

The production cut had been mooted to shore up global oil prices, which have gone into meltdown as the deadly new coronavirus casts a pall over the world economy, but now price cuts and rising output indicate an unravelling of OPEC+ co-operation.

"Saudi Aramco announces that it will provide its customers with 12.3 million barrels per day of crude oil in April," the company said in a statement to the Saudi stock exchange.

Saudi Arabia, the world's biggest crude exporter has been pumping some 9.8 million bpd so its announcement on Tuesday means it will be adding at least 2.5 million bpd from April.

"The Company has agreed with its customers to provide them with such volumes starting 1 April 2020. The Company expects that this will have a positive, long-term financial effect," the statement said.

Saudi Arabia says it has an output capacity of 12 million bpd but it is not known for how long it can sustain such levels.

The kingdom also has millions of barrels of crude stored in strategic reserves to be used when needed and is expected to use it to provide the extra supply to the global market.

"Production above 12 million bpd shows the Saudis have something to prove," director of Britain-based RS Energy Bill Farren-Price said.

"This is a grab for market share. The taps are open and the prices have been cut sharply," Farren-Price told AFP.

In a quick response, Russian Energy Minister Alexander Novak said Moscow could boost production in the short term "by 200,00-300,000 bpd, with a potential of 500,000 bpd in the near future".

But he stressed that Moscow was in favour of extending a December agreement that had seen OPEC and Russia agree to cut production by 500,000 barrels per day in 2020, lowering output from October 2018 levels by 1.7 million barrels per day.

The events of recent days have signalled a disintegration of collaboration between OPEC and Russia.

Russia is a non-OPEC member and the world's second-biggest oil producer, but Moscow and other non-members have in recent years co-operated with the oil cartel in an arrangement known as OPEC+.

The Saudi price cuts over the weekend, which were the first salvo in the price war, sent oil prices crashing -- registering the single biggest one-day loss in three decades on Monday.

Saudi Arabia draws around 70 per cent of its revenues from oil, and the revenues are key to ambitious reform programmes launched by Crown Prince Mohammed bin Salman.

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Khaleej Times
May 27,2020

Dubai, May 27: As the authorities have taken steps to ease the Covid-19 restrictions to allow the people of Dubai to resume sporting activities from Wednesday, May 27, the Dubai Sports Council has answered your key questions.

Q&A

What are the age groups allowed to practice sports during this period?

From 12 years old to 60 years old.

Is it required to do the Coronavirus (Covid 19) medical test certificate before resuming physical activity?

Returning to the activity does not require a Coronavirus (Covid 19) test certificate.

Is it allowed for the elderly with chronic diseases to return to sports activities in fitness and yoga centers?

No, it is not allowed.

Is it allowed to use the shower cabins and bathrooms in fitness and yoga centers?

Shower cabins, saunas and jacuzzis are not allowed, while bathrooms are allowed, with sterilisation being emphasised after each use.

What sports can resume its activities?

All sports except water sports/swimming and that are practiced indoors and swimming pools.

What is the approved operational percentage within the sports facility?

A maximum 50% capacity

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News Network
May 21,2020

May 21: Mosques across the UAE will remain closed during Eid Al Fitr, a top official has said. The Takbeer, which is chanted before the special prayers performed on Eid, will be broadcast from mosques 10 minutes before the prayer time.

During the virtual press briefing held on Wednesday, Dr Farida Al Hosani, official spokesperson of the UAE health sector, reminded citizens and expats about the importance of adhering to the safety measures as laid out by the authorities.

Contact tracing process

"Before we began to use Al Hosn app to trace the contacts of Covid-19 cases, the tracking process used to take more than 48 hours. It also depended on the memory and honesty of people. The app is an AI-enabled methodological way to trace individuals who came in contact with Covid-19 cases so that they are isolated. It has proven to be an efficient way to stop the spread of the coronavirus," Dr Farida said.

Install the app

She called on all the public to install the app on their smart phones. "The success of the tracing system via Al Hosn app relies on its use. We hope 50 to 70 per cent of people in the UAE instal and use the app in an effective way."

No sermon

Sheikh Abdul Rahman Al Shamsi, Spokesperson for the General Authority of Islamic Affairs and Endowments, said there will be no sermon for the Eid prayers.

He called on everyone to welcome Eid with joy and positivity and to stay connected with their loved ones via social media.

Mass testing

Dr Amna Al Dahhak Al Shamsi, the official spokesperson of the UAE Government, said mass testing continues across the country.

She stressed on the importance of adhering to precautionary measures and cooperating with the authorities.

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