Playing the currency game: Which Gulf expats are better off because of the rising dollar?

The strengthening US dollar has seen currencies across the world lose value, and with all GCC states except Kuwait pegging their currencies against the dollar, that means expatriate workers sending money home also are benefitting.

But who is getting more bang for their remitted buck?

Australians in the Gulf have arguably fared the most from the strengthening dollar, with the Aussie tumbling 25 percent in the past two years.

In 2012, the Aussie was above par ($1.04) for the first time in recent history, after Australia managed to steer clear of a recession, while the US’ economic crisis saw it reduce interest rates to near zero.

But the Aussie’s gains began to recede in mid-2013 and at an even faster rate after November, 2014, falling to as low as 76 cents against the dollar earlier this month. It is now about 78 cents.

That means an Australian who remits AED5000 ($1,361) this week would be AUD$220 ($172) better off than if they sent it home in February, 2014.

If they had held on to AED5000 from February, 2013, it would now be worth AUD$439 more.