PAK FOREX TRADINGS

Navigating Dubai's Currency and Foreign Exchange

UAE Flag
UAE Flag

In Dubai, currency exists in the form of the United Arab Emirates Dirham (Dh or AED as it is sometimes called.) Dirham notes come in an array of denominations which range from Dh 5 to Dh1000. In line with Arab tradition, falcons are pictured on the notes and the value of each note is written in Arabic only.

One dirham can be divided into 100 fils and coins can be obtained in values of Dh1, 50 fils, 25 fils, 10 fils and 5 fils. As is the case with all currencies exchange rates may vary, but when markets are stable exchange can be expected at around 7 Dirham to 1GBP British Pound Sterling and 3.7 Dirham to $1 US Dollar.

Foreign Exchange and Rates

As convenient and tempting as it may be, it is sensible not to exchange money at airports due to the fact that exchange rates offered at airports are usually exceptionally poor. Exchange centres, and local and international banks can be easily located in the city and will all likely present you with far better rates. There is no prohibition on the exchange of money in Dubai and most local banks will willingly transfer and exchange money for you. International banks like Citibank and HSBC Offshore can be found in Bur Dubai and Diera, as can a number of exchange centres like Al Razouki International Exchange Company, Thomas Cook Al-Rostamani and the UAE Exchange Center.

Both banks and exchange houses operate from around 8am to 1pm Saturday to Thursday. Some banks reopen from 4pm to 6pm Saturday to Wednesday and exchange houses typically reopen from 4:30pm to 8:30pm Saturday through to Thursday. Keep in mind the fact that the weekend falls on a Friday in Dubai and therefore all banks will be closed on this day and exchange houses are likely to only be open for a portion of the day if at all.

If you are looking to exchange large sums of money, it may be worth your while to spend some time comparing exchange rates offered by the various banks and money lenders in the city. Moneylenders will often offer better rates, although some will either refuse to accept Travellers Cheques or will accept only one or two specific types of cheques. ATMs are located all over Dubai in major shopping centres, hotels and banks. HSBC Financial Services and Emirates Bank International ATM s are connected to Global Access Systems and can be found in Deira and Bur Dubai

Travellers Cheques and major credit cards like Mastercard, Visa and American Express are accepted at the majority of hotels, shopping centres and restaurants. Tips and municipality taxes are usually already added into bills, although if you are unsure or wish to further compensate staff for good service, 10% is seen as more than generous. In the event that you are looking to pick up bargains, it is advisable to rather carry cash due to the fact that vendors will be more willing to lower prices for cash sales than they will for electronic sales. Smaller shops, especially those in souks will often refuse to accept credit cards altogether.

If you have any currency related queries whilst in Dubai you can contact either Al Razouki International Exchange Dubai on 04 2615113 or Thomas Cook Al Rostamani Exchange Company Dubai on 04 2223564.

Foreign Exchange (Forex) Market

Presently, there are various kinds of financial market, it is divided into: Stock market, interest market (including bond, commercial bill and so on), gold market (including gold, platinum, silver), futures market (including grain, cotton and kapok, oil and so on), option market and foreign exchange market or forex market and so on.

The foreign exchange market is a place to trade foreign exchange currency, or it is also a place for the transaction of all foreign currency. The foreign exchange market therefore is existence, because of:

Trade and investment
Import and export business, people pays one kind of currency when doing business, but when earns another kind of currency when receive the commodity. This means that, when settling account, business people will pay and receive different currencies. Therefore, they must convert the currencies that they received into the currencies that they could buy commodities. With this similar, when buying a foreign property a company must use the concerned country's currency to make payment, therefore, it needs to convert the domestic currency is concerned country's currency.

Speculation
Currencies exchange rates could fluctuate according to the demand and supply between two currencies. A Forex trader buys up one kind of currency in an exchange rate, but up casts this currency in another more advantageous exchange rate, he may gain. Speculation has occupied most of the Forex market.

Hedging
Due to the fluctuation between two currencies, those companies who owns foreign asset (for example factory), when these companies convert these properties into cost country currencies, there consist of certain risks. When the value of a foreign asset which is estimated based on foreign currencies remained unchanged, if the exchange rate changes, when converting this property value according to the domestic currency, there could be profit and loss. The company may eliminate such hidden risk through hedging. This carries out a foreign currency trading, its transaction result just counterbalances the foreign currency property profit and loss which produces by the exchange rate change.

Forex Market Development
The history of the Forex market as an international capital speculation market is much shorter compared the stock, the gold, the stock, the interest market, but it is developing in an astonishing speed. Today, the foreign exchange market daily trading volume has amounted to 150 billion US dollars, it’s scale has gone far beyond the stock, the stock and other finance commodity markets, it has became the world's most biggest sole finance market and the also the speculation market. Since the birth of the foreign exchange market, the fluctuation of the exchange rate of the Forex market is becoming bigger. In September 1985, 1 US dollar exchanged 220 Japanese Yen, but in May 1986, 1 US dollar only could exchange 160 Japanese Yen, in 8 months, the Japanese Yen has revalued 27%. In recent years, the foreign exchange market wave amplitude has been bigger, on September 8, 1992, 1 pound exchanged 2.0100 US dollars, on November 10, 1 pound exchanged 1.5080 US dollars, in the short two months, the pound exchanged US dollar exchange rate to fall more than 5,000, depreciated 25%. Not only that, presently, everyday the fluctuation of the exchange rate of the Forex market enlarges unceasingly, within a day the rise and drop 2% to 3% is commonly seen. On September 16, 1992, the pound exchanged US dollar from 1.8755 to fall to 1.7850, the pound on first lowers 5%.

Due to the large fluctuation of the Forex market, it has created more opportunities for the investor, attracted more and more investors to join this ranks.

FOREX RATES

Pakistan Open Market Forex Rates
Updated at : 22/3/2010 8:06 PM (PST)

Currency
Buying
Selling
Australian Dollar
76.60
77.60
Canadian Dollar
82.45
83.45
China Yuan
12.00
13.50
Euro
113.80
115.20
Japanese Yen
0.9250
0.9350
Saudi Riyal
22.40
22.63
U.A.E Dirham
22.90
23.15
UK Pound Sterling
126.80
128.20
US Dollar
84.40
84.70
More Currencies

OPEN MARKET FOREX RATES

Remittance
Buying
Selling
US Dollar TT
84.30
84.90
US Dollar DD
84.30
84.90
Currency Notes
Australian Dollar
76.60
77.60
Bahrain Dinar
225.20
227.10
Canadian Dollar
82.45
83.45
China Yuan
12.00
13.50
Danish Krone
15.50
16.00
Euro
113.80
115.20
Hong Kong Dollar
10.80
10.95
Indian Rupee
1.75
1.85
Japanese Yen
0.9250
0.9350
Kuwaiti Dinar
294.10
297.10
Malaysian Ringgit
23.00
24.50
NewZealand $
59.50
60.50
Norwegians Krone
14.30
14.80
Omani Riyal
220.55
223.00
Qatari Riyal
23.30
23.50
Saudi Riyal
22.40
22.63
Singapore Dollar
59.80
60.80
Swedish Korona
11.75
12.00
Swiss Franc
79.60
80.60
Thai Bhat
2.40
2.60
U.A.E Dirham
22.90
23.15
UK Pound Sterling
126.80
128.20
US Dollar
84.40
84.70