Sending money from the UAE? Why Dollar trends matter for your remittances

Whether it’s a shifting exchange rate or rising inflation, every dirham you send home from the UAE now stretches differently. In recent weeks, the U.S. dollar’s volatility has made that challenge even sharper.

In this post, we discuss how the dollar has trended in March–April 2025, what experts predict for the rest of the year, and how a weaker dollar affects your remittances. We’ll also explain how tools like exchange rate alerts can help you act with more confidence and maximize value during currency swings.

Where is the Dollar headed?

This spring has seen the dollar go from strength to slump in a matter of weeks. After a brief rally in late March, the dollar fell sharply in April amid rising tariffs and market uncertainty. Confidence in the dollar faded, driving it down to multi-year lows against major currencies like the euro and Swiss franc.

Some analysts believe the slide could continue. Goldman Sachs’ chief economist described the dollar as “battered and bruised” by tariff uncertainty and growing recession fears — and warned there may still be more downside to come. Others expect a rebound once tariff disputes settle and U.S. monetary policy stabilizes.

Either way, most forecasters agree on one thing: volatility is likely to persist.

What a weaker Dollar means for your remittances

Because the UAE dirham is pegged to the U.S. dollar, any drop in the dollar weakens the dirham as well. That means you’ll get fewer rupees, pesos, or pounds when you send money home, even if you’re sending the same AED amount.

This can impact families in countries like India, Pakistan, and Egypt, where small differences in conversion rates add up over time. If you send AED 1,000 each month, a drop in the AED could reduce the amount received on the other end, affecting budgets for essentials like tuition or groceries.

In the past, when currencies like the Pakistani rupee or Egyptian pound dropped sharply, UAE-based expats often sent more money to either seize a good rate or support relatives facing inflation. For instance, in 2022, when the Pakistani rupee hit a record low, remittance volumes from the UAE jumped by nearly 19% in a single month, according to the International Organization for Migration. 

The effect is often the opposite for those remitting to developed countries, like the UK or Europe. Expats sending money for mortgage payments, tuition fees, or investments may hold off when the AED weakens, since their money doesn’t go as far. A stronger pound or euro means transferring now may feel more expensive, and some users may choose to delay large transactions in hopes of a better rate.

In short, a weaker dollar-dirham tends to trigger more frequent or urgent remittances to support families in emerging markets, and more cautious, rate-sensitive behavior when the destination is a stronger, stable economy.

When is the best time to send money abroad?

Exchange rates can move quickly, sometimes day to day, based on news about tariffs, interest rates, or economic data. A small swing can mean the difference between a great transfer rate and a missed opportunity. 

One of the simplest ways to manage this type of uncertainty is to set a rate alert. This allows you to define a “target” exchange rate and get notified when that level is hit, so you don’t miss out on favourable windows to send money.

With Careem Pay, you can:

• Send money from the UAE to over 25 countries
• Transfer up to AED 150,000 per transaction or AED 450,000 per month
• Stay informed with real-time rate alerts
• Move money in under 30 minutes to local bank accounts abroad

Whether you’re sending support for school fees, medical bills, or family investments, small wins in the exchange rate can make a big difference. Being able to act quickly — and confidently — gives you more control in uncertain times.

Smart money moves in an uncertain world

If there’s one thing we’ve learned from recent market shocks, it’s this: the best time to get your finances in order is before things shift too fast to react. That doesn’t mean becoming a currency expert. It means using tools that help you stay informed and move fast when conditions change.

With Careem Pay, you can send money at the right moment, not just the most convenient one. Set a rate alert, and get notified when the market moves in your favour. Let your remittances work harder for you and for the people counting on them.