Remittance is the transfer of money from one country to another, typically to support family members or close friends. It is a major source of income for many countries, and India is one of the world’s largest recipients of remittance payments. In recent years, India has seen an influx of remittance payments from the United Kingdom (UK). This has increased the importance of exchange rates between the two countries.
In this article, we will discuss the exchange rates for remittance from the UK to India and how they are determined. We will also explore the impact of exchange rates on remittance payments and provide an overview of the current exchange rate for remittance between the UK and India.
What is an Exchange Rate?
An exchange rate is the rate at which one currency can be exchanged for another. It is determined by the demand and supply of currencies in the foreign exchange market. The exchange rate between two countries is usually represented by a ratio, such as the British pound to the Indian rupee. For instance, if the exchange rate is 1 GBP = 80.90 INR, then one British pound is worth 80.90 Indian rupees.
How are Exchange Rates Determined?
Exchange rates are determined by several factors, including the supply and demand of each currency, the relative strength of each economy, and the interest rate set by the central banks of each country. A country’s central bank can influence its exchange rate by buying or selling its currency in the foreign exchange market. This is known as currency intervention.
What is the Current Exchange Rate between the UK and India?
The current exchange rate between the UK and India is 1 GBP = 80.90 INR. This rate was last updated on April 10th, 2021.
What is the Impact of Exchange Rates on Remittance?
Exchange rates can have a significant impact on remittance payments. A change in the exchange rate can make a remittance payment more or less valuable, depending on which currency is being sent. For example, if the exchange rate increases, the remittance payment will be more valuable in the recipient’s currency. On the other hand, if the exchange rate decreases, the remittance payment will be less valuable in the recipient’s currency.
The exchange rate can also affect the cost of sending remittance payments. For instance, if the exchange rate is high, the cost of sending a remittance payment may be higher as more of the sender’s currency will need to be exchanged for the recipient’s currency. Similarly, if the exchange rate is low, the cost of sending a remittance payment may be lower as fewer of the sender’s currency will need to be exchanged for the recipient’s currency.