Local money market thrives with exchange rate of Rs 1000 for Rs 800
Source: The Sangai Express

Imphal, November 11 2016: With the State now facing acute shortage of currency notes of smaller denominations following demonetisation of Rs 500 and Rs 1000 notes, some people who are dealing in exchange of notes have been charging as much as Rs 200 for exchanging a Rs 1000 note with currency notes of smaller denominations.

If one is ready to exchange Rs 1000 with Rs 800, he/she can easily get currency notes of smaller denominations without standing in long queues in front of banks.

These currency note dealers (exchange of currency notes of bigger denominations with smaller denominations) are openly charging Rs 100 for Rs 500 and Rs 200 for Rs 1000 .

Local money market thrives with exchange rate of Rs 1000 for Rs 800

As shops at Khwairamband Keithel refused to accept Rs 500 and Rs 1000 notes, people were forced to exchange these notes with smaller denominations at the currency note dealers.

Bundles of currency notes of Rs 10, Rs 20, Rs 50 and Rs 100 were seen in front of the currency note dealers.

One woman who has been dealing in currency notes said that they have been engaging themselves in the particular trade as there is a widespread tradition of offering money (crispy notes of smaller denominations) at religious functions.

She said that they bought the crispy notes from bank employees through middlemen.

Earlier, it was during festive and marriage seasons that people came for purchasing currency notes of smaller denominations with currency notes of bigger denominations.

But these days, a large number of people come for buying currency notes of smaller denominations following demonetisation of Rs 500 and Rs 1000 notes.

She said that the amount of money exchanged in a day varies between Rs 50,000 to Rs 80,000 in the last couple of days.

The rate of Rs 200 now charged for exchanging a Rs 1000 note with currency notes of smaller denominations may rise in the coming days, she added.

Earlier, the exchange rates were Rs 50 for a Rs 500 note and Rs 100 for a Rs 1000 note.