The money changers and general public here has started dumping of the newly-introduced Iraqi currency, Yadgar, a money changer, at the currency market in Chowk told Business Recorder on Saturday.
According to money changers, about 10 billion newly-introduced Iraqi dinars have flooded the currency market. The buyers of this currency are including not only general public, but also low-paid employees of the public sector departments, they added.
They said the notes on sale are mostly of worth five thousand, 10 thousand and 25 thousand. The new Iraqi dinar is introduced by the United States after occupation of Iraq.
"Billions of Iraqi dinar is under circulation in the currency market of Peshawar, and speculations and betting are going high on the future of the new Iraqi currency," remarked Haji Sherzada, president, Currency Sarafa Association, NWFP, while sitting in his shop in the centre of Peshawar city.
He said two kinds of Iraqi currency is in circulation in the market of Peshawar. One is with a photo inscribed with the photo of the former Iraqi leader Saddam Hussain and the second is introduced by the United States inscribed with a shape of a horse.
He, however, said the Iraqi dinars with the photo of the deposed president Saddam Hussain has lost value, and now no one is ready to buy or sell it.
"The new Iraqi currency is supplied to the local market from Karachi and Abu Dubai currency market of United Arab Emirates (UAE). Similarly, it also reached the local market from Turkey and Iran entering Pakistan through the Chaman border", said Haji Sherzada.
In the beginning, the price of 0.1 million Iraqi dinars was Rs 3,500 which after reaching the peak of Rs 8,000 is now in standstill at Rs 4,500, he added.
When asked about the causes of the interest of the people in the matter, he said millions of rupees have been invested in the business with the hope that like Afghani, the value of the America's introduced currency in Iraq would also fixed much higher than the existing one, adding: "The matter of concern is only the much higher price notes."
The cut in the mark-up rate by the commercial banks of the country is also a cause for the people investing in the business.
Haji Sherzada said the currency market of Peshawar, which was once the hub of the business in Afghan currency was on way to present deserted look, but the arrival of new Iraqi currency has provided oxygen to it.
He demanded of the government to take necessary measures in this connection through announcing policy, and ban the smuggling of the currency to Pakistani markets, and save the people involved in the business from bankruptcy.
Shakil Ahmad Khan, general secretary, Currency Sarafa Association, was much concerned over the mysterical silence of the government over the matter, saying through the issuance of new Iraqi dinars, United States want to increase the purchase of dollars by the people.
He said unlike Iraq people, the province has no trade relations with Iraq and Iraqi dinars purchased by the people have been stored in the houses, adding in case of the increase in its price, it would once come out, and the currency dealer would have to buy it.
He said the flow of the new Iraqi currency to Pakistan continues through both land and air. He was optimistic that the price of the new Iraqi currency would increase as the all business activities of Iraq is going on through the new currency.
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