The open market in Pakistan is experiencing a shortage of UAE dirhams (AED) after the Gulf state made it mandatory for visitors to disclose AED 5,000 upon arrival at Emirati airports.
The latest decision has caused a shortage of dirhams in Pakistan’s currency market, as well as a rise in the value of the US dollar (USD).
Meanwhile, the unexpected shortage of UAE dirhams on the open market has raised their relative value to the interbank rate. Malik Bostan, President of the Exchange Companies Association of Pakistan (ECAP), indicated that roughly 21 Pakistani planes carrying approximately 4,200 Pakistanis arrive in Dubai every day and need approximately AED 21 million each day.
He explained that “the dirham is no longer available in the open market while the fee has also increased,” and that “those handy foreign currencies are shipped to Dubai to bring back an equal amount of US dollars.”
“A shortage of dollars has resulted from increased demand for the UAE’s currency,” Bostan said.
According to Bostan, the Civil Aviation Authority’s (CAA) new law requiring all passengers to declare cash and valuables has resulted in this circumstance.
According to him, the majority of individuals travelling from the Middle East have riyals and dirhams. Furthermore, they transfer money to their relatives in Pakistan via their colleagues, but no one would take that risk now, he thinks.
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Bostan also said that the quantity of foreign currency entering the open market has decreased by $3 million each day.
The rupee, which had recovered to Rs. 207 versus the US dollar, is again trading at Rs. 212 in the open market and dropping in the interbank market.
