(MENAFN- Qatar News Agency) Some merchants in the markets of Makkah and Madinah have refused to accept currencies from Arab Spring countries for fear of devaluation that might subject them to huge losses.
The traders said even though revolutions in some Arab countries have come to an end more than a year ago, fears still persist that these currencies might plummet at any time causing huge losses, the Saudi daily (Arab News) reported.
"Some of these currencies can also easily be forged," one of the traders said.
A number of bankers and economists expressed similar fears. They said Saudi merchants started becoming apprehensive of currencies from Arab Spring countries and had stopped accepting them. "Any political rumor may bring down the price of the currency of any of the Arab Spring countries by more than 30 percent making it extremely risky for Saudi traders to accept them," the Arab News quoted a banker as saying.
The banker said that Saudi traders prefer to deal with the US dollar, Euro and Saudi riyal. "The rate of the dollar against the Saudi riyal is stable," he added.
An economist said that Saudi traders learned their lesson from the Lebanese lira and the Iraqi dinar. "They do not want to be bitten twice," he said.
A banker noted that weak security measures in some Arab countries have made counterfeiting money much easier.
He advised the citizens of Arab Spring countries to exchange their currency at a Saudi bank because money changers may not accept these currencies. "The banks usually accept all currencies because the Saudi Arabian Monetary Agency (SAMA) quickly notifies them in case of devaluation and other risks," he said.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.