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KARACHI: The open market is experiencing a shortage of UAE dirhams (AED) as the Gulf state requires Pakistani travelers to disclose Dh5,000 at the airport upon landing, foreign exchange traders said.
Recent developments have caused the Pakistani currency market to fail to reach the AED. As a result, the dollar price in the containment market has also risen. The dollar’s price rose relative to its interbank offered rate due to a sudden shortage of dollars in the open market.
Malik Bostan, chairman of the Association of Exchange Companies of Pakistan (ECAP), said that 21 daily flights landed in Dubai from Pakistan, transporting 4,200 Pakistanis a day, requiring about Dh21 million per day.
“The dirham is no longer available on the open market and the fees have gone up,” Bostein said, adding: “Those convenient overseas currencies are exported to Dubai to transfer back the equivalent dollar. Increased demand leads to a shortage of dollars.”
Bostan said a new Civil Aviation Authority (CAA) law requiring all passengers to declare cash and jewellery brought up the problem. Most of the people from the Middle East came with money in riyals and dirhams, he said. They also send money from colleagues to go directly to their families in Pakistan. Now, no Pakistanis can take that risk.
He added that foreign currency entering the open market fell by about $3 million a day. The rupee has recovered to 207 against the dollar in the open market last week and is now trading at 212. Local units also started to fall in the interbank market.
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