MAKKAH – Many currency exchange agencies in Makkah have recently purchased large amounts of the Iranian currency, the rial, because percent, according to Adel Al-Maltani, head of Makkah-based currency exchange committee. Because the number of overseas pilgrims to the Kingdom last year was not that large, the trading volume of currency exchange has been gradually decreasing and many currencies have been largely affected in the process, he noted. Last year, the trading volume was SR20 million a day at its best, which is considered low when compared with that of the previous years, which reached SR40 million a day, he told the Al-Eqtisadiah newspaper. Consequently, when the number of Iranian pilgrims decreased, the value of their currency decreased, Al-Maltani said. “Many agents in the market shied away from buying the Iranian rial while others, me included, took the risk and bought it in bulk. It's a big risk on our part but we chose to take it.” Al-Maltani hopes that one day the Iranian rial will regain its value and when that happens he and other agents stand to make a tidy sum. But if the Iranian currency remains at current low levels, those who bought it in bulk will sustain big losses. In response to a question about how effective the new regulations introduced recently by the Saudi Arabian Monetary Agency (SAMA) have been in controlling the currency exchange market, Al-Maltani said these regulations have prevented unlicensed currency exchange agencies from engaging in any exchange-related activities. “When the regulations entered into force, they shut down over 14 agents who were not licensed and opened the door for new properly-licensed agents to compete in the market.” Al-Maltani says the market is going through hard times now and believes that the trading volume will continue its downwards trend, especially now that the new expansion of Tawaf area has begun. It is expected that, because of the new expansion, authorities will reduce the number of Umrah pilgrims coming to the Kingdom in order to allow workers at the expansion area to complete their work as early as possible, he added. Al-Maltani hopes these expectations do not come true. — SG
