Saudis refrain from dealing in Iraqi currency and the countries of the Arab Spring
Riyadh / follow-up JD / .. newspaper (economic) Electronic Arabia a report seen by agency / JD / that some dealers shops in the markets of Mecca and Medina refrained from dealing with the currencies of Arab countries witnessed revolutions Arab spring, and the fear of collapse or falling the exchange rate of those currencies that exposes them to huge losses, noting that traders sensed a problem”
and the Iraqi dinar””” Lebanese lira previous experience problems seen its currency plunged. The newspaper pointed out: traders and owners of these shops, they began to refuse to deal in these currencies after a year to some of the revolutions in those Arab countries where political problems were reflected on its economy and security of making the shop owners and traders fear the circulation because of the falling exchange rate of sudden, and in a moment’s fear of exposure to the loss of double ,
noting that some of these currencies is now possible to easily forged. The bankers and economists to” economic” The currencies of the countries of Arab revolts began to raise concerns of traders and the local markets is what made them reluctant to deal with or accept it, because of the rapid decline of the exchange rate of up to any news of a negative political to 30 per cent, or ease the process of counterfeiting Given the vulnerability of security markers, while there are foreign currencies fluctuate because of the economy can not be falsified Kaammelta” euro” and” dollar” of the strength of the security marks and also””
Saudi riyal currency is difficult to falsify that only these two currencies, such as trust them ‘ ‘Real’ and ‘dollar’. Here is the source of a bank official to” economic”, the main reason for refusal merchants to accept coins and dollar”” due to the many considerations the most important of the stability of the exchange rate of the Saudi riyal against the dollar.
With regard to currencies other Arab countries with transition-and where there have been revolutions, the economy which is stable and its future is vague and, according to experience banking the political situation of the countries of the former touched the problem of” dinar” Iraqi and” pound” Lebanese previous experience has seen the problems of hot currency.
The source said, the concerns of traders due to fluctuations frightening to the exchange rate of these currencies because they are turning to the bank to exchange currency before a long time and they find it had collapsed or fell any disorder or news of a negative for the rate of descent between 25 to 30 per cent, which means loss of traders and shop owners.
The source pointed banking itself, that the security situation is also in these countries, unstable, exposing these currencies to fraud as a result of loose security, and makes them into potential forgery, especially Arab countries, some easy rigging their currencies, making traders and shop owners fear circulation, acceptance, so turn currency trading currency secured some difficult rigged currency” Euro” despite the volatility, but the signs in which the security is very high as well as the ‘dollar’ and ‘Real’ in Saudi Arabia.
He explained that the citizens of these countries are resorting mostly to swap their currencies in exchange Arabia, which either they change the exchange rate or apologize for its acceptance of the fears of rejection when migrating these currencies to central banks, which cost the banking market Arabia loss in the event of non-acceptance by the central banks of those troubled countries, because it has to be altered in other banking operations, but the disorder reduces the possibility of completion of such operations, which likely probability of loss, while often changing currencies citizens of Arab countries in the Saudi banks.
He added: banks accept the replacement rate of exchange if they are within its treasury, while the shops have concerns Unlike the banks, the fact that replacement and conversion in Saudi banks will be very fast in addition to monitoring and follow-up by the Saudi Arabian Monetary Agency, which monitors the situation carefully because if they sensed the movement of a negative of any country they feel Banks need to stop accepting these currencies questionable and expected collapse of the early and get rid of them available in the coffers of the banks. On the nature of hesitation to accept the euro currency among local merchants,
The source bank, that due to the reason for high frequency of this currency as a result of the problems faced by the European Union, especially as some of the country on the brink of collapse and any news of economic bad landing currency quickly, advising clients Gulf in Saahthm in these countries, regardless the currency” Euro” instead of the dollar and local banks before going, because the price fixed in Saudi banks.
He stressed that the U.S. dollar, despite being subjected to fluctuations of the causes of the problems experienced by the U.S. economy remains strong as a result trading in the world, but what occurs to the economy oscillating make it fixed, but influenced by exchange rate of the Saudi riyal is worrying, price of exchange against the dollar pegged Bammelth fixed.
For his part, said to” economic” Nashwa Taher, Chairperson of the Trade Commission in Jeddah Chamber: The situation is not stable in the countries of the Arab revolts what traders feel uncomfortable, a good reason for refusing to deal and trading of these currencies, because they do not know their political status bad troubled reflected on the economic situation, which is affiliated to any political turmoil.
While the currency” Euro” are unstable and can not estimate anything about currencies and the single most stable currency is the dollar so the dollar is more than any other currency. Differences of economic or oscillations caused by political instability naturally leads to the instability of the exchange rate, and does not accept traders currencies volatile and volatile for the instability of the exchange rate of these currencies, and thus incur traders losses, while the dollar currency stable against the exchange rate of Saudi Riyal disk.