logo
NRIs in UAE: How to invest in foreign currency non resident fixed deposits

NRIs in UAE: How to invest in foreign currency non resident fixed deposits

Khaleej Times3 days ago
Question: I have been a resident of the Gulf for the last 17 years after leaving India and have now acquired foreign citizenship. I have been investing in foreign currency non-resident deposits in India. Can I continue to do so after acquiring foreign citizenship? What are the advantages of such investment?
ANSWER: You will be eligible to invest in Foreign Currency Non-Resident deposits with banks in India even after you take up citizenship of a foreign country and cease to be an Indian citizen. You will be treated as a person of Indian origin since you held an Indian passport. The money will be retained in the same international currency, whether it is US Dollar, British Pound, Euro or any other specified foreign currencies. The interest will be paid to you in the same currency and the deposit will be refunded on maturity also in the same currency. Therefore, there is no risk of any exchange loss. The duration of the term deposits ranges from one year to five years. The interest earned on the deposits is fully exempt from tax in India.
A PIO/NRI has the option to deposit his funds in the Non-Resident (External) Account in which case the deposit is converted into rupees. This would fetch a higher rate of interest but the exchange risk will have to be borne by the depositor. During the financial year 2024-25, the net inflow of non-resident deposits was $16.2 billion which was the highest in eleven years. The share of FCNR deposits was 44 per cent. Therefore, this deposit has become extremely popular with non-resident Indians and persons of Indian origin.
Question: There are some reports that the corporate results of the first quarter of the current financial year 2025-26 are not as per market expectations. Is there likely to be an upswing in the manufacturing sector in the coming weeks?
ANSWER: During the first quarter, inflation in commodity prices had an adverse impact which resulted in urban consumers cutting back on discretionary spending. Unseasonal rains in certain parts of India also impacted food prices. However, recent data for June has indicated that the demand for consumer goods has picked up. This is partly attributable to income tax rates being lowered for the current financial year which has resulted in greater take home salaries for the middle class. Therefore, data for home, personal care and healthcare segments has indicated strong growth and this is reflected in the sales performance of almost every FMCG company.
In the coming weeks it is expected that the demand for consumer goods will spurt even more due to rural demand picking up on account of sustained growth in the agricultural sector. Other figures indicate that the construction equipment sales recorded a growth of 55 per cent in June, driven by the push for infrastructure projects. Automobile sales have increased by 5 per cent to over 2 million units. According to the Federation of Automobile Dealers, electric commercial vehicle sales went up by 31.7 per cent. Sale of electric commercial vehicles recorded an increase of 122.5 per cent year-on-year.
Question: As in many other countries, spurious pharmaceutical products are sold to unsuspecting patients. What action is the Indian Government taking to fight this menace?
ANSWER: The Union Health Ministry is in the process of amending the rules to make it mandatory for manufacturers of antimicrobials, vaccines and psychotropic substances to affix barcodes or Quick Response codes on their product labels. Earlier the drug regulator had mandated that certain cancer drugs would have barcodes for validating their authenticity. This was done to prevent criminals from refilling expensive anti-cancer drugs with counterfeits. These fake drugs were then mixed with genuine stocks and sold to unsuspecting cancer patients.
Under the new regulations, it is mandatory for pharma companies to affix barcodes on the top 300 brands which would give information such as manufacturing licence and batch number. These drugs include widely used analgesics, pain relievers, vitamin supplements, and blood sugar lowering medicines. Therefore, stringent steps are being taken by Government authorities in India to remove the scourge of fake medicinal products being sold in the market.
The writer is a practising lawyer, specialising in corporate and fiscal laws of India.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trade smarter: using volatility to maximise potential on OctaTrader
Trade smarter: using volatility to maximise potential on OctaTrader

Zawya

time39 minutes ago

  • Zawya

Trade smarter: using volatility to maximise potential on OctaTrader

KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 26 July 2025 - Volatility is what makes trading possible. It fuels every market movement and creates opportunities where none existed a moment before. Without it, the concept of trading as it stands today would simply not exist. As the pulse of the market, volatility shapes the ebb and flow of price dynamics—sometimes driven by trading itself, sometimes setting the pace for it. This article explores what volatility is, why it matters, and how to harness it effectively with OctaTrader, the proprietary platform developed by the globally trusted broker, Octa. Volatility as a Key Trading Factor In simple terms, volatility measures how much a financial instrument's price changes over a certain time period. Volatility is like the market's heartbeat—a strong, fluctuating pulse indicates high volatility, while a slow, steady rhythm suggests low volatility. In the Forex market, volatility essentially tells a trader how much a currency pair like EUR/USD or GBP/JPY is bouncing around, and it is this movement that traders thrive on. In other words, volatility is not just a statistical measure: it's the very essence of opportunity and risk. Whether scalping for quick pips, riding longer trends, or holding positions for weeks, volatility has a direct impact on trading strategies. Every trader should know or at least partly understand the level of volatility of the instrument that they are currently trading. This knowledge will enable a trader to: Maximise trading potential. Larger price swings mean more significant potential gains (or losses). High volatility can signal breakout opportunities or strong trends. Manage risk more effectively. Knowing volatility helps to set adequate stop-loss and take-profit orders. In a volatile market, a trader might need wider stops to avoid getting whipsawed. Improve entry time. Low volatility might mean a market is 'resting' before a big move, while high volatility could signal overbought or oversold conditions. When professional traders talk about volatility, they often refer to 'implied annual volatility'. This is a forward-looking measure, representing the market's expectation of how much an asset's price will fluctuate over a year. It is derived from options prices and is annualised to a percentage. While calculating implied volatility often involves complex pricing models, a simpler way for a retail trader to grasp volatility is to look at historical price movements. For example, if a currency pair has consistently moved an average of 80 pips per day over the past month, its daily volatility for that period could be considered to be 80 pips. However, volatility isn't just about raw price changes; it's relative. A trader cannot just look at today's price swings in isolation. Instead, comparing price movements against historical data helps determine whether the market is unusually calm or wildly active. For example, if EUR/USD moves 50 pips a day on average but suddenly jumps 150 pips, that's high volatility compared to its norm. At the same time, a 100-pip move in a currency pair might be considered high volatility on a quiet trading day, but completely normal during a major economic data release. In other words, volatility can only truly be understood in relation to historical price action. Measure the pulse: volatility indicators on OctaTrader Calculating volatility manually requires determining the average closing price of a particular asset over a selected period, then measuring deviations by subtracting the average from the latest closing price, squaring the deviations to eliminate negative values, summing them, dividing the total by the number of periods analysed, and finally taking the square root. This method is not only complex but also time-consuming. Recognising the crucial role of volatility calculation, Octa, a globally regulated and trusted broker, has equipped its traders with the right tools. Specifically, Octa has developed a proprietary trading platform, OctaTrader, which not only allows traders to place orders in the market, but also provides robust analytical capabilities. For measuring market volatility, OctaTrader has integrated several popular and effective indicators that help a trader gauge the market's pulse: Average True Range (ATR), Bollinger Bands (BB), and Standard Deviation (SD). Let's break them down and see how they work in practice. Bollinger Bands (BB): These bands consist of three lines: a simple moving average (the middle band) and two standard deviation lines (upper and lower bands) plotted above and below it. How it works: The bands widen when volatility spikes and contract when it drops, giving a trader a visual snapshot of market action. When prices touch or break out of the bands, it can signal overbought or oversold conditions, or the potential for a new trend. Practical use: BBs are great for spotting anomalous conditions in the market. If the price touches the upper band, it signals that a trading instrument could be overbought and due for a pullback. If it dips below the lower band, it could be oversold, signalling a potential rebound. In other words, BBs are useful for mean-reversion strategies, where traders expect prices to return to the moving average within the bands. Average True Range (ART): This indicator measures market volatility by calculating the average range between high, low, and closing prices over a specified period. It is called 'true range' because it accounts for gaps and wild price swings. How it works: ATR gives a trader a single number to gauge volatility, making it especially practical to set stop-losses. Practical use: A higher ATR means higher volatility and bigger price swings, so a trader would need to apply wider exit points to avoid getting stopped out prematurely. A lower ATR suggests lower volatility and narrower price ranges. If the ATR for XAU/USD is 25 pips, a trader might set a stop-loss 1-2 times the ATR (50-100 pips away from the entry point) to give the trade some room to run. ATR is also a great tool for understanding the 'normal' daily or hourly movement of a currency pair. Standard Deviation (SD): This is an advanced statistical indicator that measures how much a financial instrument's price deviates from its average over a set period. How it works: SD indicator provides a direct numerical value of volatility. A higher SD means prices are widely dispersed (higher volatility), while a lower one means they're tighter and are close to the average (lower volatility). Practical use: SD is useful for comparing the volatility of different assets or different time periods for the same asset. Traders can use it to identify statistically significant price movements and assess the likelihood of the price continuing in a particular direction. If EUR/USD's standard deviation spikes compared to its 20-day average, it might signal a volatile period ahead, prompting a trader to tighten stops or reduce position sizes. Volatility isn't just a number: it's a signal. By understanding and utilising these powerful volatility indicators, available in the OctaTrader platform, traders can gain a deeper insight into market dynamics, decide when to enter or exit trades, adjust position sizes, or brace for big market moves. We understand that in the world of trading, trust is paramount. That is why Octa goes the extra mile to equip traders with the right tools. Hashtag: #Octa The issuer is solely responsible for the content of this announcement. Octa Octa is an international CFD broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services used by clients from 180 countries who have opened more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools. The company is involved in a comprehensive network of charitable and humanitarian initiatives, including improving educational infrastructure and funding short-notice relief projects to support local communities. In Southeast Asia, Octa received the 'Best Trading Platform Malaysia 2024' and the 'Most Reliable Broker Asia 2023' awards from Brands and Business Magazine and International Global Forex Awards, respectively. Octa

How the climate crisis is creating millions of refugees in the Middle East
How the climate crisis is creating millions of refugees in the Middle East

The National

time9 hours ago

  • The National

How the climate crisis is creating millions of refugees in the Middle East

• Remittance charges will be tackled by blockchain • UAE's monumental and risky Mars Mission to inspire future generations, says minister • Could the UAE drive India's economy? • News has a bright future and the UAE is at the heart of it • Architecture is over - here's cybertecture • The National announces Future of News journalism competition • Round up: Experts share their visions of the world to come

United States Energy Association (USEA) Chief Executive Office (CEO) Mark W. Menezes to Bring United States (U.S.) Energy Expertise to African Energy Week (AEW) 2025 Stage
United States Energy Association (USEA) Chief Executive Office (CEO) Mark W. Menezes to Bring United States (U.S.) Energy Expertise to African Energy Week (AEW) 2025 Stage

Zawya

time10 hours ago

  • Zawya

United States Energy Association (USEA) Chief Executive Office (CEO) Mark W. Menezes to Bring United States (U.S.) Energy Expertise to African Energy Week (AEW) 2025 Stage

Mark W. Menezes, President and CEO of the United States Energy Association (USEA), joins a roster of high-level speakers at this year's African Energy Week (AEW): Invest in African Energies 2025 conference – taking place from September 29 to October 3 in Cape Town. Bringing decades of experience bridging public and private sector energy leadership, Menezes's participation at AEW: Invest in African Energies 2025 underscores the U.S.'s enduring commitment to supporting Africa's energy transformation through strategic partnerships, technical assistance and investment facilitation. At the helm of the USEA, Menezes oversees the Energy Utility Partnership Program (EUPP), a flagship initiative supported by the U.S. Agency for International Development, which supports national utilities and energy institutions across sub-Saharan Africa in expanding access to electricity, integrating renewable energy, improving grid stability and strengthening institutional capacity. The USEA currently operates in more than a dozen African countries, with long-standing partnerships in Uganda, Kenya, Tanzania, Senegal, Djibouti and Ethiopia as well as across regional power pools like the Southern African Power Pool (SAPP), Eastern Africa Power Pool and the West Africa Power Pool. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. In Uganda, the USEA has partnered with the country's Uganda Electricity Generation Company, the Uganda Electricity Transmission Company and major distribution companies including Umeme and the Uganda Electricity Distribution Company. Through a wide-ranging support program, USEA has delivered significant results including the development of a national Energy Mix Diversification Strategy, the certification of asset management personnel and significant cost savings by replacing foreign contractors with locally trained hydropower maintenance teams. Meanwhile, in Kenya, the USEA supports utilities including the Kenya Electricity Transmission Company and other public and private entities through the East Africa Regional Transmission Planning Program. The initiative has helped develop the region's first integrated load flow planning model to strengthen cross-border energy planning between Ethiopia, Kenya, Tanzania, Rwanda and Burundi. The USEA has also been deeply engaged in Senegal since 2015, supporting the country's national electricity company SENELEC in managing a growing portfolio of energy projects through technical assistance in project management, procurement and power system modeling. In Ethiopia, the USEA played a key role in the drafting and passage of the country's Geothermal Resource Development Proclamation, which created the legal foundation for private investment in Ethiopia's vast geothermal potential. The USEA also helped Ethiopia Electric Power secure a $7.7 million grant through the African Union Commission's Geothermal Risk Mitigation Facility to advance development of the Alalobeda geothermal field. Meanwhile, the USEA, in collaboration with the SAPP, facilitated executive exchanges, helped reform governance bylaw and supported the development of regional frequency and environmental guidelines aligned with international standards. As such, AEW: Invest in African Energies 2025 is set to serve as a critical platform for the USEA to deepen its partnerships with African utilities, regulators and private sector stakeholders. As Africa continues to balance the urgent need for energy access with long-term sustainability and industrialization goals, the USEA's technical support, training programs and planning tools offer frameworks for reform and investment readiness. 'Through the USEA and programs like EUPP, African countries are building stronger, smarter and more resilient energy systems. AEW: Invest in African Energies 2025 will provide the ideal forum to accelerate this momentum,' states Tomás Gerbasio, VP of Commercial and Strategic Engagement, African Energy Chamber. Distributed by APO Group on behalf of African Energy Chamber. About Mark W. Menezes: Mark W. Menezes is President and CEO of the United States Energy Association, representing 150 members across the U.S. energy sector. A former U.S. Deputy Secretary and Under Secretary of Energy, he managed a $34 billion budget and oversaw national labs, nuclear programs, and major energy initiatives. Menezes has held senior roles at Berkshire Hathaway Energy, in Congress as Chief Counsel for the House Energy&Commerce Committee, and as a partner at Hunton&Williams LLP. He founded Global Sustainable Energy Advisors and teaches energy law at Georgetown. He holds degrees from LSU and is licensed in D.C., Texas, and Louisiana.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store