The Open Market Faces Foreign Currency Shortage

After a long period of time, due to the lack of dollar in the open market, the value of the US currency increased in the open market compared to the inter-bank rate.

According to the report, Forex Association of Pakistan reported that the price of the dollar in the open market on Saturday was 218 rupees, while the price of the dollar in the inter-bank market on Friday was 214 rupees 65 paisa. Banking markets are closed on Saturday.

Currency dealers said that the latest developments have led to a shortage of foreign currency, particularly the UAE dirham, which has led to a decline in exportable currencies.

Malik Bustan, president of Forex Association, said that from this week, every Pakistani must show 5,000 dirhams at the airport upon landing in the United Arab Emirates, which led to a sudden shortage of dirhams.

He further said that 21 flights from Pakistan reach Dubai every day in which a total of 4,200 Pakistani passengers board daily. Recently, the Dubai authorities have instructed Pakistani citizens to keep 5 thousand dirhams with them when landing at the Dubai airport.

A perusal of the data reveals that 4,200 Pakistanis need about 21 million UAE dirhams per day to land in Dubai. Malik Bustan further said that the dirham is not available in the open market while its price has also increased, the high demand for dirham has created a shortage of dollars. Also, the government’s new order has asked people to declare cash and other valuables with them at the time of departure and arrival.

Currency dealers say that declaring cash and valuables upon arrival in one’s own country is unconscionable. In fact, this move has created fear among citizens that declared cash and valuables will get them out of trouble can suffer.

The president of Forex Association said that many people coming from the Middle East bring Rials and Dirhams, they also bring currency from their colleagues to give cash to their families in Pakistan, but after this move, no Pakistani It cannot take risks. The inflow of foreign currencies into the open market has reduced to between $10 million and $2 million per day, as against the earlier inflow of around $4 million per day.

Currency dealers said that further shortages may be seen in the open market in the coming days while exportable foreign currencies have decreased.

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