Young ones shop for Eid, adults shop for Eidi

Eidi givers arrange for new currency notes to appease cheeky young ones who demand their Eidi is crisp, freshly minted

KARACHI: No Eidul Fitr celebration is complete without crisp new notes, fresh from the press for Eidi. Those who have crossed the barrier between Eidi recipients and Eidi givers, arrange for new notes every year so as not to disappoint cheeky young ones who demand their Eidi is brand new, scented notes fresh from the press. Old currency notes are exchanged for new ones, change for bigger notes is sought, pretty envelopes are bought and stacks of Rs10, Rs50, Rs100 notes are carefully placed to ensure that they remain crease-free. Yes little ones, while you're shopping for Eid, the adults are shopping for your Eidi.

The State Bank of Pakistan (SBP) rises to the occasion each year printing millions of new notes on Eid. In the last two years, it has facilitated citizens through an SMS service which enabled them to book fresh notes from nearby branches. As always, informal systems were also there to assist and exploit citizens who couldn't get new notes in time.

Boulton Market

Karachi's Boulton Market is famous for the buying and selling of fresh currency notes. The market sells new notes all year round with over a 100 stalls set-up for the exchange. It has proper shops established for this purpose as well as make-shift stalls and vendors on footpaths. During the rest of the year, the market caters to those seeking fresh notes for weddings, religious ceremonies like naatkhwani and other occasions.

Eidul Fitr significantly increases business activity at Boulton Market with vendors charging premiums as high as Rs100 on a packet of Rs10 notes, Rs150 on a packet of Rs20 notes and so on. This year, the rate in the black market has remained low due to the high influx of fresh currency notes.

The premium for a ream of Rs50 notes stood at Rs200 in the days leading up to Eid while the premium for a ream of Rs100 stood at Rs250. This was roughly a 100 to 150 rupees lower than the premiums charged in 2018.

While the exchange of notes carried on in full swing this Ramazan, vendors at Boulton Market said that they saw more sellers and fewer buyers this year. Most buyers were labourers returning to their villages and home towns for Eid or citizens who could not be facilitated by the banks.



Facilitating citizens

SBP facilitated people through an SMS service. Those in want of fresh currency notes for up to Rs18,000 could send an SMS to 8877 with their CNIC number and their nearest bank branch code. The booking service became operational on May 19 and new notes were issued from May 20 to May 31. According to the SBP, around three million citizens benefitted from the service this year and currency notes worth around Rs360 billion were issued, of which Rs61b were of denominations below Rs100. Commercial banks were also issued freshly minted currency notes to accommodate their customers.

Yet, not all citizens could be accommodated. One purchaser of freshly minted notes at Boulton Market said he did message 8877 but did not receive a confirmation message despite several attempts. "With nowhere to go, I have to buy a packet of Rs10 notes at Rs1,100," said the buyer, adding that his children simply would not accept stale notes for Eidi. "It also feels good to give Eidi in fresh notes," he added smiling.

Top down trickle

Vendors at Boulton Market claim that most of their supply of fresh notes comes from employees of SBP.

SBP gives Eid salaries to its support staff in newly-issued currency notes which then find their way to the black market at a premium of 10% to 15% higher than the face value of the note.

Dealers at Boltoun Market say that the business of new currency notes allow for a Rs20 to Rs30 commission per packet. The real benefit, they add, is derived by government employees and staff who sell currency notes in the black market in the millions.

Published in The Express Tribune, June 5^th, 2019.