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JEDDAH -- The currency exchange market is expecting an increase in its activities by at least 15% percent, thanks to the Umrah season, the expansion in Makkah and school holiday, noted traders in the field.
"Less Saudis are traveling now, but we expect them to travel more after Eid," said Saleh Al-Amoudi, an owner of an exchange shop.
He explained "if we want to put currencies that are on high demand in order, dollar comes first, followed by UAE dirham, Turkish lira, Malaysian ringgit, British pound and Euro."
The demand on foreign currencies is higher than the demand on riyal by 40%, said Khursan bin Yala, CEO of Bin Yala Money Exchange. "Pilgrims who come now do not spend money on their food and accommodations as pilgrims used to do previously. The new regulations oblige the pilgrims campaigns to pay for these expenses, therefore the pilgrims will ask for riyal only to have pocket money."
Arab pilgrims do not bring their home currencies to Saudi Arabia except for minor contribution from Egyptian pilgrims, said Bin Yala CEO. He added that they are not expecting to see many pilgrims this year from Arab countries.
He noted that more pilgrims will come from the Asian countries which will boost the exchange market as these pilgrims will ask for Saudi riyal to buy some gifts fro their families.
He agreed with Al-Amoudi and said that the demand is more on foreign currencies especially since Saudis are traveling abroad particularly to the UAE, Turkey, Malaysia and Europe.
Asked about Euro, he said that it is not on very high demand, but they expect to buy it from pilgrims as Ramadan approaches.
Speaking about the black market, Bin Yala noted that it plays a minor role in the exchange market and called on the banks and Saudi Arabian Monetary Agency to monitor accounts and document any illegal transaction.
© The Saudi Gazette 2016
