Pound may fall another 5% against dirham

However, he noted that a scenario where the UK government seeks a second referendum will act as a lifeline for the battered pound, ultimately offering it an opportunity to rebound against the dirham.

The pound has fallen from a high of 5.239 against the UAE dirham hit on February 2 to 4.596 on December 10, losing 12.27 per cent.

Rajiv Raipancholia, CEO, Orient Exchange, said the outlook of pound is very bearish and expected to depreciate further to 4.50. He advised British nationals residing in the UAE to remit according to the requirement as pound is expected to drop further.

Sudhesh Giriyan, COO, Xpress Money, said pound went down 2 per cent in compared to pre-announcement and but clawed back a little back but the trend and outlook seems negative.

“What Prime Minister Theresa May thought can happen about Brexit is not happening now so the trend seems to be negative. It is difficult to say how much pound can go down further because it is too early and we have to take a stock of it,” he said.

He advised UK citizens in the UAE that whenever there is an opportunity during currency slump, they should make the most of it.

“Remittance went up in the past when dirham strengthened against Asian and UK currencies and definitely remittances will go up again,” Giriyan added.