Since UAE made it essential for travellers to disclose AED 5,000 upon arrival at Emirati airports, Pakistan’s open market is experiencing a shortage of UAE dirhams (AED).
The latest action has boosted the price of the US dollar and caused a scarcity of dirhams in Pakistan’s currency market (USD). In the meanwhile, the unexpected dearth of UAE dirhams on the open market has driven up the cost of the currency relative to the interbank rate.
Around 21 Pakistani planes carrying 4,200 Pakistanis arrive in Dubai each day, according to Malik Bostan, president of the Exchange Companies Association of Pakistan (ECAP), and they require roughly AED 21 million each day.
He stated that “those handy international currencies are shipped to Dubai to bring back an equal quantity of US dollars,” and added that “the dirham is no longer available in the open market while the charge has also increased.”
Dollars are in limited supply, according to Bostan, who noted that demand for the UAE’s currency has increased.
According to Bostan, this circumstance is the result of the Civil Aviation Authority’s (CAA) new regulation requiring all passengers to disclose their possession of cash and jewels. He claimed that the majority of visitors from the Middle East arrive with riyals and dirhams. Furthermore, he said, they transfer money to their family in Pakistan through their colleagues, but no one would take the risk anymore.
Bostan also noted a substantial $3 million daily reduction in the quantity of foreign currency entering the open market. The exchange rate of the rupee, which had risen to Rs. 207 versus the USD, is now Rs. 212 on the open market, and it is falling on the interbank market as well.
