Peso depreciates vs. dirham, benefiting OFWs

The Philippine peso has depreciated against the UAE dirham, settling at 15.5 per dirham. This marks a favorable exchange rate for Overseas Filipino Workers (OFWs) in the UAE and other Gulf markets.

"Even by close of the market yesterday, all signs were pointing to the peso weakening and that it would end up at levels that UAE Filipino expats will likely consider," Neelesh Gopalan, treasury manager at a Dubai fintech, said in a report by Gulf News. "So, you had the peso closing at 15.50 level last evening and now opening at 15.54."

For OFWs in Saudi Arabia and Qatar, the peso's exchange rate against local currencies stands at 15.28 and 15.72, respectively.

Filipino expatriates in the UAE have already begun using banking and exchange house applications to capitalize on the peso's drop against both the dirham and the dollar. Typical fees for remittances are around 10.50 dirhams ($2.86) on some popular platforms, while exchange houses charge over 20 dirhams per transaction.

Recent media reports from the Philippines quoted the country's central bank chief as saying it makes no sense to intervene to prop up the peso.

Over the past 30 days, the peso had remained steady at the 15 to 15.1 mark against the dirham, making the latest drop particularly welcome among OFWs in the UAE.

"If only this level sustains until my next salary transfer, that would be the best outcome," one OFW said. "Today's drop has come too late for me to be sending money home."