Some travelers to Dubai are scrambling to buy UAE dirhams as a recent development prompted them to adopt security measures to avoid being questioned, travel agents and industry officials said. company registrarcausing the rupee to fall against the foreign currency.
However, experts say the development itself is not the reason for the rupiah’s drastic fall against all major currencies on the open market – the main source for travelers to buy currency.
Earlier this month, the Pakistani Consulate in Dubai, in a letter sent to the Ministry of Foreign Affairs (MOFA) and the Federal Investigation Agency (FIA), said that a number of Pakistanis, traveling with a visit visa, had been expelled from the United Arab Emirates. for having bogus return tickets, possessing a visit visa when the intention was to seek work and insufficient cash.
In his letter, a copy of which is available with company registrarThe Pakistani Consulate in Dubai has urged that Pakistani passengers be advised that those seeking employment in the UAE must obtain an “appropriate work visa, hold valid return tickets and have a minimum of AED 5,000 in species”.
Fifth straight loss: Rupee continues to depreciate against US dollar
Reliable sources in the travel industry have confirmed the development, while adding that it will not apply to people with work visas already issued by the UAE, as well as those arriving at airports in the country. for transit.
Data from the Dubai Department of Economy and Tourism reveals that Pakistan is among the top source markets for visitors. Around 193,000 visitors from Pakistan visited Dubai in the six-month period between January and June 2022 alone.
According to this figure, which does not even include the number of travelers from Pakistan to other cities in the United Arab Emirates, the demand for dirhams has increased several times.
However, Zafar Paracha, Secretary General of Exchange Companies of Pakistan (ECAP), said demand could still be higher, but that is not the reason for the rupee’s fall.
“The demand may increase, but I don’t think it will drive up the price of the dirham that way,” Paracha said. company registrar.
“People from 150 cities in Pakistan are traveling to the United Arab Emirates. Demand is spread across the country. Also keep in mind that people traveling to Dubai or the United Arab Emirates would already have some foreign currency with them.
Parsha, on the contrary, said that the rupiah was under pressure due to “smuggling to Afghanistan”.
The Pakistani rupee has seen a wide gap in its interbank and open market exchange rates in recent weeks.
Over the past two weeks, one UAE dirham has appreciated by almost 10% on the open market, according to rates shared by ECAP.
During the same period, one US dollar also rose from around 213 rupees to 230 rupees on the open market, a gain of almost 8%.
By comparison, the rupee only depreciated by about 3% against the US dollar in the interbank market.
AA Gold Commodities director Adnan Agar said the forex market, like any other market in the country, “played with such news”.
“The higher rate may also be due to an enforced shortage of currency, as exchange firms may benefit. This is all due to speculation,” he said.
Stories posted on social media by travelers who have recently visited Dubai indicate that no formal regulations or changes to SOPs have been enforced. However, they added that they were in possession of a valid visa and a confirmed return ticket, stressing that these conditions seemed sufficient to satisfy the Emirati authorities at the airports.