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Currency juggling: UAE residents can take advantage of new spending power

August 11, 2016

Home | Insights | General | Currency juggling: UAE residents can take advantage of new spending power

Finding yourself at the sharp end of unfavourable currency movements is expensive and painful, as many UAE-based expatriates have discovered.

Currency calculations are familiar fare for many expats, and the post-Brexit volatility of the pound has given these sums added urgency. But the good news for UAE residents is that their dollar-pegged earnings have become worth more relative to many other currencies, given recent strength in the US economy.

 Richard and Carol Dale have lived outside the United Kingdom for almost six years but still have financial commitments back home and this requires them, as Richard puts it, “to ride the roller coaster of currency exchange”.

The Dales, both 51, have to service a mortgage on their UK property, plus council tax, utility bills and road tax for their car.

Currency volatility has made for a bumpy ride, but the strength of the dollar, especially against the pound, is making it a lot more comfortable.

 The Dales previously spent more than four years in Australia, during which time the Aussie dollar sank from £0.69 to £0.49, which felt like a salary cut. “Some months we crossed our fingers just hoping the exchange rate would stay favourable for a bit longer.”

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