Favorable exchange rate to India seen Fluctuations are temporary, says Titus

KUWAIT CITY, Feb 12: The coming days are good times for money remittances to India with exchange rates heading to settle between Rs 53 and Rs 55 against the US Dollar, says Titus ED, Director and General Manager of Bahrain Exchange Company (BEC). Titus was talking to the Arab Times Tuesday as fluctuations in exchange rates continued to arouse concerns among Indian remitters.  Titus said the fluctuations are temporary and not unusual ahead of the Indian budget, which is going to be out soon. Currently, the exchange rate of rupee is hovering at Rs 191 against the Kuwaiti Dinar.  By next month the rate will stabilize between Rs 189 and Rs 195.

Titus further saw SBI’s announcement of a half percent increase in interest rates on deposits as a favorable sign for remittance. “There is no reason to expect a big fall in the Indian rupee in the near future.” Titus had rightly predicted in the middle of last year the drop in rupee’s exchange rate to 200 against 1 Kuwaiti Dinar, advising remitters to hold back for more opportunistic remittances. Since last year, money remittance to India has seen a growth of 8 to 9 % annually, Titus noted. Some of the reasons for this increase are more influx of Indians into Kuwait, and the unwillingness of expatriates to hold back money.

Asked if the fear of political instability in Kuwait is driving expatriates to repatriate their savings, Titus replied in the negative. Public perception of instability in Kuwait was never very high, and there was never a panic remittance any time in the recent years, even when revolutions were rocking neighboring countries. Moreover, the stock indices are recovering fast in all international bourses, including the US. Titus saw this as a sign of revival and a general surge in economy.

By Valiya S. Sajjad - Arab Times Staff

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