UK Expats Reap Cashback Rewards As Pound Plummets

The British pound has fallen to its lowest level against the dollar in more than five years. British expats cashing in their dollar assets and remitting it back into UK sterling are getting 23 percent more for their money compared to November last year when sterling hit a 26-year high against the US dollar.

The British pound fell to its lowest level against the dollar in more than five years on Wednesday on the back of Bank of England governor Mervyn King’s prediction that the UK is en route to a recession.

The pound dropped as much as 3 percent to $1.6203, its lowest level since September 2003, sparking a flurry of money exchange transfers between the Gulf and the UK as British expats moved to take advantage of the favourable exchange rate. In November 2007 the UK currency was worth $2.107, its highest level since May 1981.

All Gulf states, bar Kuwait, peg their currencies to the dollar, meaning any change in the value of the dollar against other currencies is mirrored by Gulf currencies.

“It’s great for UAE expats as they are getting more pound for their dirham,” Eren Cayam, a senior trader at First Rate FX in London. “They are saving… by remitting money home now compared to November last year.”

News submitted by Lorena Rodriguez, P&O Homes

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