MAKKAH, 24 January 2005 — Banking sources in Makkah have warned the pilgrims against illegal exchange of currencies being carried out by expatriate residents at several locations in the holy city. They exploit the absence of official currency exchange outlets in these areas and palm off counterfeit currencies to gullible pilgrims, Al-Eqtisadiah business daily, a sister publication of Arab News, reported yesterday.
A reporter of the daily witnessed the exchange of fake currency notes by some African pilgrims, most of whom are violators of the Kingdom’s residency (iqama) law.
A banking source warned pilgrims of forged currencies being used in such operations, pointing out that there had been cases of international gangs smuggling counterfeit currencies into the Saudi market.
The pilgrims need to change their money into Saudi riyals to buy food and other essentials in the holy sites as well as gifts for their dear and near ones on leaving the Kingdom. Some pilgrims are attracted to exchanging foreign currencies into riyals in the black market, as the exchange rate is better than the official rate, dealers in foreign currencies say.
Earlier authorities had warned about the influx of a number of counterfeit currencies into the Saudi market.
The banks had issued directives to their employees and moneychangers in their branches in Makkah, Madinah and the air, land and sea entry points to be cautious and check different banknotes and their denominations meticulously to ensure that they are genuine. The banks have instructed their employees to inform the police immediately about any suspicious cases.
Smuggling of counterfeit currencies into Saudi territories increases during the Haj season. Fake currencies are mostly seized from African and Southeast Asian pilgrims as well as those from some neighboring Arab countries.
The exchange houses in the area surrounding the Grand Mosque in Makkah are doing brisk business these days. Fifty percent of the 50 money exchanges work only during the season. Ibrahim Al-Amoudi, a banker, estimated the volume of currency exchange during the Haj season at over SR5 billion. He said his shop exchanges about SR5 million daily.
He pointed out that the pilgrims from Southeast Asia are the ones who mostly exchange money in view of the periods they spend in the holy lands. The money exchange market in Makkah is among the biggest in the world as over 1.5 million pilgrims come there from abroad annually.
