Dollar rose to a high of 88.30 against the cash

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The Reserve Bank of India on Friday announced the demonetisation of the Rs 2,000 note. The announcement led to an increase in demand for the dollar, euro and dirham in the private, cash-traded foreign exchange market. With tourists now going out of the country on holidays and since the central government has announced 20 per cent tax collection at source on foreign exchange payments from July 1, there was still a huge demand for cash dollars, the new factor being that inward dollars The price has reached up to 88.30. Market sources say.

Even when demonetisation happened in 2016, some people lined up old Rs 500 and Rs 1000 notes to buy gold and US dollars. This time the quantity of Rs 2,000 notes is less than then but those who have them are rich and most of the money is unaccounted and moving towards dollar and gold.

Marketmen said the demand for the dollar was high not only because of the new note ban but also because of other factors. Under normal circumstances, there is a premium of about Rs 1.50 to 2.50 in the cash market over foreign exchange received through banking, but now the premium has increased for three reasons. However, sources say there is a shortage of dollars in the Ahmedabad and Gujarat markets as several licenses of the Full Flagged Money Changer (FFMC) category have been cancelled. As per the list of Reserve Bank there are around 146 FFMC Licensed Forex Dealers under Ahmedabad Regional Office (Gujarat, Diu, Daman). However, market sources said the Reserve Bank has canceled 22 licenses in the last three months for non-compliance of various norms.

In Ahmedabad on Monday, the dollar was priced at Rs 88.30 in cash, while the dirham required for those going to Dubai was priced at Rs 24.20. In addition, the pound was at 109, the euro at 96.20 and the Australian dollar at 56. According to the Reserve Bank’s reference rate, the dollar is 82.80, the pound is 103 and the euro is 89.60.

Buying dollars without the knowledge of people on visa

Market sources said that once the visa is approved, forex dealers and travel agents are buying dollars and pounds on paper-in-hand basis to the extent of Rs 50,000 (i.e. no need for PAN card or other documents). Are. They sell these dollars or other currencies to other people at higher prices and earn their commission. As fewer travel agents are providing the dollar supply to the market due to the cancellation of Lions, prices are seeing higher prices due to less supply than demand.