British expats in UAE ready to cash in on weak pound again as remittances surge

British expats across the region will be getting ready to cash in on renewed sterling weakness if the pound comes under further pressure this week.

Already currency exchanges are reporting a surge in remittances to the UK after sterling took a hammering last week, hitting a 31-year low.

Remittance volumes handled by UAE Exchange surged 135 per cent last week compared to the same week a month earlier.


“Though uncertainties prevail around the UK’s economic prospects outside the EU, British expats are cashing in on the favourable exchange rate,” said chief executive Promoth Manghat.

Now top banks are predicting further pain for the pound.

Banks that include HSBC, Goldman Sachs, Deutsche Bank and Bank of America all expect the pound to come under further pressure after tumbling about 6 per cent this month as traders eye Brexit-related risks.

The dollar, to which the UAE dirham is pegged received a further boost last week after the publication of positive retail industry data.

The pound has been a big driver of global currency volatility since Britain voted to leave the European Union in June.

The pound dropped about 10 per cent immediately after the vote and has extended losses since to almost 20 per cent.

A “flash crash” of the currency on October 7 created more concerns around negotiations with Brussels on the country’s departure from the EU.

scronin@thenational.ae

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