Among the expatriates in Qatar, Sri Lankans gained the most in 2015 from the currency depreciation. Sri Lankan rupee declined by a massive 10 percent, or 3.6 rupees, against Qatari riyal last year. The currency started the year at 36 per Qatari riyal and ended at 39.55 per riyal in 2015. A depreciating currency benefits expatriates because they get additional income due to decline.

Pakistani and Nepali expatriates also benefitted significantly from currency depreciation as Pakistani currency lost 1.13 rupee, while Nepalese currency fell close to 1 rupee against riyal in 2015. Pakistani rupee was trading at 27.27 per riyal at the start of January 2015, while on December 31, it was trading at 28.80 riyal. Nepalese currency started 2015 at 27.27 per riyal on January 1 and ended the year at 28.31 against one riyal. Indian rupee depreciated about 5 percent, or 87 paise, against riyal last year.

Other currencies such as euro, Egyptian pound, Philippine peso and Bangladeshi taka also depreciated last year, but not significantly. Egyptian pound fell from 1.96 per riyal in January 1 to 2.14 at the end of 2015, while euro started the year at 0.22 per riyal to 0.25 riyal at the end of December. Peso was trading at 12.29 per riyal at the start of year and finished the year at 12.75 per riyal. Bangladeshi taka was trading at 21.36 per riyal at the start of 2015 and it ended the year at 21.52 per riyal.

Last year was the year of decline for all major currencies across the globe as many countries witness fund outflows due to strengthening of the US dollar. The Qatari riyal has also gained against other currencies as it is pegged to the dollar.

Sri Lankan rupee depreciated massively against dollar because of the domestic factors, along with international factors. The central bank of Sri Lanka, last year, decided that it would stop quoting a reference rate for the currency and would let markets determine the rate.

“All major currencies bore the brunt of dollar strengthening. Anticipation of rate hike in interest rate by the central bank of US and finally a hike in rate in December last year triggered fund outflows in many countries. Fund withdrawals by foreign investors weakened major currencies,” said Zuber Abdul Rahman, Operations Manager, Al Zaman Exchange. “Devaluation of yuan by Chinese central bank was another big blow for many countries that weakened currencies,” he added.

China, the world’s second-largest economy after the US, devalued its currency in August last year (and in the first week this year) in a bid to boost its exports and expand economy. China is grappling with a softening economy and wild swings in the stock market.

(The Peninsula)