Gulf currencies pegged to dollar keep migrant workers’ families afloat
While the strong dollar has played in favor of Gulf migrant workers, they are not exempt from wage increases falling behind the inflation rate.
The impact of a strengthened dollar is being directly felt by Gulf migrant workers with currencies in their home countries being weakened against the greenback.
Across Asia and Africa, boosted remittances helped migrant workers buy homes and paid for school fees and living expenses to contain the impact of inflation.
“Working in the Gulf region is an advantage at this point in time. The conversion rate has improved steeply over the years to our benefit. Still, our currency depreciating is not good news for India,” Mythili Kolluru, an Indian assistant professor in Muscat, told Al-Monitor.
The Omani rial has appreciated about 60% against the Indian rupee since Kolluru first landed in the Sultanate in 2012. Except for Kuwait which pegs its dinar to a currency basket, Gulf countries have their currencies pegged to the US dollar.
