KARACHI, Feb 17: The closure of one of the biggest currency exchange house of Dubai has created serious problems for the sellers of currencies, other than US dollar, in the local market and that exchange rates have started sliding against Pak rupee.Money changers said they were not accepting UAE dirham, Saudi riyal and other currencies except US dollar as the closure of Reems Exchange has created problems in smooth exchange process.

The Dubai-based Reems Exchange was closed on Thursday, which blocked hundreds of millions of dollars of the Pakistani money changers, who were trading with the Dubai exchange company.

Money changers said UAE dirham has lost up to 10 paisa against Pak rupee in the local market mainly because most of the money changers were not buying other currencies.

However, few money changers were accepting dirham but they too were facing problem to exchange currency in Dubai after closure of the company.

“We are still unaware about the reason for closure of Reems and have no clue about our stuck-up TTs (telegraphic transfers), which were not honoured by the Reems,” said a leading money changer, not wanted to be quoted.

He said most of the licensed companies, which have business in Karachi, Lahore, Islamabad, Peshawar and Quetta were fearing huge losses ranging from $2 million to $8 million by each company. Apart from that, scores of un-licensed money changers across the country used to do exchange business with the licensed companies and they were also in hot water.

Money changers having no clue about their ‘so far lost money,’ expressed deep concern about the future course of trading with Dubai-based companies. They said Dubai had a very good reputation of fair and transparent business but the incident had badly shaken the confidence of the business community.

“We don’t have any alternate of Dubai, which is not only the hub of all kind of business activities but is very close to Pakistan,” said Amjad, a currency dealer. He said it was in the interest of both Dubai and Pakistani business community to resolve this millions of dollars mystery and protect the trust business community had in Dubai market.

Money changes from all over Pakistan are still flying to Dubai to find out the future of their money stuck-up with the Reems exchange. They said every house had sent its representative to Dubai as the amount was much more than the traveling and other expenditures.

“We hope that the Dubai government would support us to payback our money as the image of Dubai is at stake,” said a frustrated money changer.