Deel, a global HR and payroll company, has analyzed payroll data and revealed a significant trend in the behavior and payouts of Indian workers due to the strength of the US dollar. The data shows an 11% increase in contractor dollar withdrawals in India since May 2023. Deel is an HR and payroll platform helping 25k+ companies across 150+ countries employ nearly half a billion global workers – these workers are able to withdraw their pay in 120 currencies. As the dollar has continued to rise, Deel has seen a sharp increase in requests for payment in USD around the world – especially for contract workers in Argentina, UAE, Turkey, Georgia, and India.
Deel studied data that was collected by tracking the percentage of withdrawals made in US dollars for each country over a period of 12 months via their platform. Countries studied included, the USA, Ukraine, Turkey, Portugal, Poland, Pakistan, Philippines, Mexico, India, Georgia, Great Britain, Spain, Colombia, Canada, Belarus, Brazil, Argentina, and UAE.
The surge in contractor dollar withdrawals in India can be attributed to several factors influenced by the strength of the dollar:
- Favorable Exchange Rates: As the dollar gains strength against the Indian rupee, workers can withdraw dollars at a more favorable exchange rate, allowing them to maximize their earnings.
- Increasing Interest in Exploring Foreign travel: A growing, affluent middle-class and younger, intrepid Indians are increasingly traveling to the US, contributing to the country’s emergence as the fifth largest source of tourists.
Indian Dollar Withdrawals Compared to Other Countries
Only five countries witnessed a double-digit percentage increase in currency withdrawals since the start of the study . Argentina witnessed the highest increase of USD withdrawals , followed by UAE & Turkey , Georgia , and India . India ranks 4th out of 18 countries with the highest increase of USD withdrawals since May 2023.
The significant increase in Argentina can be attributed to the country’s ongoing economic crisis, which has led to high inflation rates and a decline in the value of the local currency. As a result, people could be opting for the more stable US dollar to protect their savings and conduct transactions. The substantial increase in the UAE and Turkey can be linked to ongoing economic uncertainty and geo-political issues in these regions. The rise in currency withdrawals is likely a response to the need for a more stable store of value, as well as the desire to diversify assets and mitigate potential risks. Georgia’s increase in USD withdrawals can be attributed to the dollar’s strength against the Georgian Lari.
“This surge in contractor dollar withdrawals in India underscores the impact of global economic forces on individual financial decisions, highlighting the importance of leveraging currency fluctuations for enhanced earnings and financial stability in today’s interconnected world,” said Mark Samlal, General Manager APAC, Deel and Founder of PayGroup.
“India’s rapid growth and rising middle-class purchasing power make these developments notable. As India solidifies its global standing, we expect Indians to further leverage their financial acumen, strengthening India-US economic ties,” Samlal added.